REQUIRES TWO-THIRDS MAJORITY VOTE (§§ 47, 88)                                                                              

                            (REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 661–Select Committee on Energy

 

March 26, 2001

____________

 

Referred to Select Committee on Energy

 

SUMMARY—Revises and repeals various provisions concerning utilities and energy. (BDR 58‑1128)

 

FISCAL NOTE:    Effect on Local Government: No.

                                 Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to energy; authorizing certain eligible customers to purchase electrical energy, capacity and certain ancillary services from providers of new electric resources; revising and repealing various provisions concerning the regulation of public utilities and the process of establishing and changing rates; expanding the public utilities commission of Nevada from three to five members; revising provisions relating to the employees and operations of the commission; requiring the commission to adopt certain regulations relating to the termination of utility service; enacting various provisions concerning contracts for the purchase of power and the construction and operation of electric generating units; providing for the levy of an assessment on certain electric generating units; revising the authority of the commission to regulate mergers, acquisitions and certain other transactions involving public utilities and other entities; making various changes with respect to net metering; establishing a program for the issuance of bonds to pay the cost of renewable energy generation projects; creating the task force for renewable energy and prescribing its membership and duties; creating the trust fund for renewable energy; transferring control of the Nevada state energy office from the director of the department of business and industry to the bureau of consumer protection in the office of the attorney general; 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. For the purposes of sections 3 to 26, inclusive, of this act,

1-2  the legislature hereby finds and declares that:

1-3    1.  A reliable and reasonably priced supply of electricity is critical to

1-4  the economy of this state and to the health, safety and welfare of the

1-5  residents of this state;

1-6    2.  The electric utilities in this state depend on regional energy markets

1-7  to purchase approximately 50 percent of the electricity needed to serve

2-1  their customers in this state, and such purchases are often made pursuant to

2-2  agreements with terms of 1 year or less;

2-3    3.  The energy markets in the western United States currently are

2-4  characterized by critical shortages in the supply of electricity and

2-5  extremely high prices for electricity, both of which are damaging to the

2-6  strength of the economy of this state and to the well-being of the residents

2-7  of this state;

2-8    4.  The residents of this state would benefit from construction of new

2-9  generation assets in this state and from access to other new electric

2-10  resources, wherever located, that provide lower-priced electricity;

2-11    5.  The economic development that would result from construction in

2-12  this state of new generation assets, supporting gas pipelines and additional

2-13  infrastructure would be of special benefit to the rural areas of this state

2-14  where the new generation assets are most likely to be located;

2-15    6.  During this session, the legislature has considered a number of

2-16  different but complementary approaches to developing and using new

2-17  generation assets and other new electric resources and to increasing the

2-18  supply of reasonably priced electricity in this state;

2-19    7.  The development and use of new generation assets and other new

2-20  electric resources by eligible customers would permit the electric utilities

2-21  in this state to reduce their dependence on purchases of excessively priced

2-22  electricity from dysfunctional, short-term energy markets and would

2-23  thereby reduce the average system costs for such electric utilities;

2-24    8.  The development and use of new generation assets and other new

2-25  electric resources can be encouraged by allowing eligible customers to use

2-26  their own resources, initiative, expertise and credit to develop, access and

2-27  enter into agreements for the purchase of electricity from new generation

2-28  assets and other new electric resources; and

2-29    9.  To protect the electric utilities in this state and their remaining

2-30  customers, all transactions proposed by eligible customers pursuant to

2-31  sections 3 to 26, inclusive, of this act must be carefully reviewed by the

2-32  public utilities commission of Nevada to ensure that the electric utilities in

2-33  this state and their remaining customers are not subject to increased costs

2-34  as a result of the proposed transactions and that the proposed transactions

2-35  are not otherwise contrary to the public interest.

2-36    Sec. 2. Title 58 of NRS is hereby amended by adding thereto a new

2-37  chapter to consist of the provisions set forth as sections 3 to 26, inclusive,

2-38  of this act.

2-39    Sec. 3. As used in this chapter, unless the context otherwise

2-40  requires, the words and terms defined in sections 4 to 16, inclusive, of

2-41  this act have the meanings ascribed to them in those sections.

2-42    Sec. 4. “Ancillary services” means those generation services that:

2-43    1.  Are necessary to support the transmission of energy and capacity

2-44  from resources to loads while maintaining reliable operation of the

2-45  transmission system of the electric utility; and

2-46    2.  Are defined and established in applicable transmission tariffs on

2-47  file with the Federal Energy Regulatory Commission.

3-1    Sec. 5. “Calendar quarter” means each period of 3 consecutive

3-2  calendar months ending on March 31, June 30, September 30 and

3-3  December 31 in each calendar year.

3-4    Sec. 6. “Commission” means the public utilities commission of

3-5  Nevada.

3-6    Sec. 7. 1.  “Electric utility” means any public utility or successor in

3-7  interest that:

3-8    (a) Is in the business of providing electric service to customers;

3-9    (b) Holds a certificate of public convenience and necessity issued or

3-10  transferred pursuant to chapter 704 of NRS; and

3-11    (c) In the most recently completed calendar year or in any other

3-12  calendar year within the 7 calendar years immediately preceding the

3-13  most recently completed calendar year, had a gross operating revenue of

3-14  $250,000,000 or more in this state.

3-15    2.  The term does not include a cooperative association, nonprofit

3-16  corporation, nonprofit association or provider of electric service which is

3-17  declared to be a public utility pursuant to NRS 704.673 and which

3-18  provides service only to its members.

3-19    Sec. 8. “Electric utility that primarily serves densely populated

3-20  counties” means an electric utility that, with regard to the provision of

3-21  electric service, derives more of its annual gross operating revenue in

3-22  this state from customers located in counties whose population is 400,000

3-23  or more than it does from customers located in counties whose

3-24  population is less than 400,000.

3-25    Sec. 9. “Electric utility that primarily serves less densely populated

3-26  counties” means an electric utility that, with regard to the provision of

3-27  electric service, derives more of its annual gross operating revenue in

3-28  this state from customers located in counties whose population is less

3-29  than 400,000 than it does from customers located in counties whose

3-30  population is 400,000 or more.

3-31    Sec. 10. “Eligible customer” means an end-use customer which is:

3-32    1.  A nongovernmental commercial or industrial end-use customer

3-33  that has an average annual load of 1 megawatt or more in the service

3-34  territory of an electric utility.

3-35    2.  A governmental entity, including, without limitation, a

3-36  governmental entity providing educational or health care services, that:

3-37    (a) Performs its functions using one or more facilities which are

3-38  operated under a common budget and common control; and

3-39    (b) Has an average annual load of 1 megawatt or more in the service

3-40  territory of an electric utility.

3-41    Sec. 11. “Energy” means electrical energy.

3-42    Sec. 12. “Generation asset” means any plant, facility, equipment or

3-43  system which is located within or outside this state and which converts

3-44  nonelectrical energy into electrical energy or otherwise produces

3-45  electrical energy.

3-46    Sec. 13. “New electric resource” means:

3-47    1.  The energy, capacity or ancillary services and any increased or

3-48  additional energy, capacity or ancillary services which are:

4-1    (a) Made available from a generation asset that is not owned by an

4-2  electric utility or is not subject to contractual commitments to an electric

4-3  utility that make the energy, capacity or ancillary services from the

4-4  generation asset unavailable for purchase by an eligible customer; and

4-5    (b) Able to be delivered to an eligible customer.

4-6    2.  Any increased energy, capacity or ancillary services made

4-7  available from a generation asset pursuant to an agreement described in

4-8  section 18 of this act.

4-9    Sec. 14. “Person” means:

4-10    1.  A natural person.

4-11    2.  Any form of business or social organization and any other

4-12  nongovernmental legal entity, including, without limitation, a

4-13  corporation, partnership, association, trust or unincorporated

4-14  organization.

4-15    3.  A governmental entity other than:

4-16    (a) This state or an agency or instrumentality of this state; or

4-17    (b) A political subdivision of this state or an agency or instrumentality

4-18  of a political subdivision of this state.

4-19    Sec. 15. “Provider of new electric resources” and “provider” mean a

4-20  person who makes energy, capacity or ancillary services from a new

4-21  electric resource available to an eligible customer.

4-22    Sec. 16. “Time-of-use meter” means a meter that:

4-23    1.  Measures and records the electric demand, energy and power

4-24  factor on 15-minute intervals; and

4-25    2.  Is suitable for use with an electric demand of 1 megawatt or more.

4-26    Sec. 17. 1.  The provisions of this chapter do not alter, diminish or

4-27  otherwise affect any rights or obligations arising under any contract

4-28  which requires an electric utility to purchase energy, capacity or

4-29  ancillary services from another party and which exists on the effective

4-30  date of this act.

4-31    2.  Each electric utility or its assignee shall comply with the terms of

4-32  any contract which requires the electric utility or its assignee to purchase

4-33  energy, capacity or ancillary services from another party and which

4-34  exists on the effective date of this act.

4-35    Sec. 18. 1.  Except as otherwise provided in this section, an electric

4-36  utility may, at its discretion, enter into agreements relating to its

4-37  generation assets and the energy, capacity or ancillary services provided

4-38  by its generation assets with one or more other persons who are not

4-39  electric utilities. Such agreements:

4-40    (a) May include, without limitation, agreements to construct or install

4-41  a new generation asset on real property that is adjacent to an existing

4-42  generation asset owned by the electric utility; and

4-43    (b) May provide for the sharing of available common facilities with

4-44  the existing generation asset or the reengineering, repowering or

4-45  expansion of the existing generation asset to generate energy more

4-46  efficiently and at a lower cost and to make more energy available to

4-47  customers in this state.

4-48    2.  Any increased energy, capacity or ancillary services made

4-49  available from a new generation asset or an existing generation asset

5-1  pursuant to an agreement described in subsection 1 shall be deemed to be

5-2  a new electric resource that may be:

5-3    (a) Owned by the parties to the agreement who are not electric

5-4  utilities; and

5-5    (b) Used or consumed by such parties for their own purposes or sold

5-6  by such parties to one or more eligible customers pursuant to the

5-7  provisions of this chapter.

5-8    3.  A transaction undertaken pursuant to an agreement described in

5-9  subsection 1:

5-10    (a) Must not impair system reliability or the ability of the electric

5-11  utility to provide electric service to its customers; and

5-12    (b) Must not violate the provisions of sections 8 to 18, inclusive, of

5-13  Assembly Bill No. 369 of this session.

5-14    4.  The provisions of this section do not exempt any party to an

5-15  agreement described in subsection 1 from any applicable statutory or

5-16  regulatory requirements relating to siting, construction and operation of

5-17  a generation asset.

5-18    5.  The commission shall encourage the development of new electric

5-19  resources and shall not exercise its regulatory authority in a manner that

5-20  unnecessarily or unreasonably restricts, conditions or discourages any

5-21  agreement described in subsection 1 that is likely to result in increased

5-22  energy, capacity or ancillary services from a generation asset or

5-23  improved or more efficient operation or management of a generation

5-24  asset.

5-25    Sec. 19. 1.  Except as otherwise provided in this section, a provider

5-26  of new electric resources may sell energy, capacity or ancillary services to

5-27  one or more eligible customers if the eligible customers have been

5-28  approved to purchase energy, capacity and ancillary services from the

5-29  provider pursuant to the provisions of sections 20 and 21 of this act.

5-30    2.  A provider of new electric resources shall not sell energy, capacity

5-31  or ancillary services to an eligible customer:

5-32    (a) Before April 1, 2002, if the eligible customer’s load is in the

5-33  service territory of an electric utility that primarily serves less densely

5-34  populated counties;

5-35    (b) Before June 1, 2002, if the eligible customer’s load is in the

5-36  service territory of an electric utility that primarily serves densely

5-37  populated counties; or

5-38    (c) If the transaction violates the provisions of this chapter.

5-39    3.  A provider of new electric resources that sells energy, capacity or

5-40  ancillary services to an eligible customer pursuant to the provisions of

5-41  this chapter:

5-42    (a) Does not become and shall not be deemed to be a public utility

5-43  solely because of that transaction; and

5-44    (b) Does not become and shall not be deemed to be subject to the

5-45  jurisdiction of the commission except as otherwise provided in this

5-46  chapter or by specific statute.

5-47    4.  If a provider of new electric resources is not a public utility in this

5-48  state and is not otherwise authorized by the provisions of a specific

5-49  statute to sell energy, capacity or ancillary services at retail in this state,

6-1  the provider shall not sell energy, capacity or ancillary services at retail

6-2  in this state to a person or entity that is not an eligible customer.

6-3    Sec. 20. 1.  An eligible customer that is purchasing electric service

6-4  from an electric utility shall not purchase energy, capacity or ancillary

6-5  services from a provider of new electric resources and an eligible

6-6  customer that is purchasing energy, capacity or ancillary services from a

6-7  provider of new electric resources shall not purchase energy, capacity or

6-8  ancillary services from another provider unless:

6-9    (a) The eligible customer files an application with the commission not

6-10  later than 180 days before the date on which the eligible customer

6-11  intends to begin purchasing energy, capacity or ancillary services from

6-12  the provider; and

6-13    (b) The commission approves the application by a written order issued

6-14  in accordance with the provisions of this section and section 21 of this

6-15  act.

6-16  The date on which the eligible customer intends to begin purchasing

6-17  energy, capacity or ancillary services from the provider must not be

6-18  sooner than the date on which the provider is authorized by section 19 of

6-19  this act to begin selling energy, capacity or ancillary services to the

6-20  eligible customer.

6-21    2.  Except as otherwise provided in subsection 3, each application

6-22  filed pursuant to this section must include:

6-23    (a) Information demonstrating that the person filing the application is

6-24  an eligible customer;

6-25    (b) Information demonstrating that the proposed provider will provide

6-26  energy, capacity or ancillary services from a new electric resource;

6-27    (c) Information concerning the terms and conditions of the proposed

6-28  transaction that is necessary for the commission to evaluate the impact of

6-29  the proposed transaction on customers and the public interest, including,

6-30  without limitation, information concerning the duration of the proposed

6-31  transaction and the amount of energy, capacity or ancillary services to be

6-32  purchased from the provider; and

6-33    (d) Any other information required pursuant to the regulations

6-34  adopted by the commission.

6-35    3.  Except as otherwise provided in section 21 of this act, the

6-36  commission shall not require the eligible customer or provider to

6-37  disclose:

6-38    (a) The price that is being paid by the eligible customer to purchase

6-39  energy, capacity or ancillary services from the provider; or

6-40    (b) Any other terms or conditions of the proposed transaction that the

6-41  commission determines are commercially sensitive.

6-42    4.  The commission shall provide public notice of the application of

6-43  the eligible customer and an opportunity for a hearing on the application

6-44  in a manner that is consistent with the provisions of NRS 703.320 and

6-45  the regulations adopted by the commission.

6-46    5.  The commission shall approve the application of the eligible

6-47  customer unless the commission finds that the proposed transaction:

6-48    (a) Will be contrary to the public interest; or

7-1    (b) Does not comply with the provisions of section 21 of this act, if

7-2  those provisions apply to the proposed transaction.

7-3    6.  In determining whether the proposed transaction will be contrary

7-4  to the public interest, the commission shall consider, without limitation:

7-5    (a) Whether the electric utility that has been providing electric service

7-6  to the eligible customer will be burdened by increased costs as a result of

7-7  the proposed transaction or whether any remaining customer of the

7-8  electric utility will pay increased costs for electric service as a result of

7-9  the proposed transaction;

7-10    (b) Whether the proposed transaction will impair system reliability or

7-11  the ability of the electric utility to provide electric service to its remaining

7-12  customers; and

7-13    (c) Whether the proposed transaction will add energy, capacity or

7-14  ancillary services to the supply in this state.

7-15    7.  If the commission approves the application of the eligible

7-16  customer:

7-17    (a) The eligible customer shall not begin purchasing energy, capacity

7-18  or ancillary services from the provider pursuant to the proposed

7-19  transaction sooner than 180 days after the date on which the application

7-20  was filed; and

7-21    (b) The commission shall order such terms, conditions and payments

7-22  as the commission deems necessary and appropriate to ensure that the

7-23  proposed transaction will not be contrary to the public interest. Such

7-24  terms, conditions and payments:

7-25      (1) Must be fair and nondiscriminatory as between the eligible

7-26  customer and the remaining customers of the electric utility; and

7-27      (2) Must include, without limitation, payment by the eligible

7-28  customer to the electric utility of the eligible customer’s load-share

7-29  portion of any unrecovered balance in the deferred accounts of the

7-30  electric utility.

7-31    8.  If the commission does not enter a final order on the application

7-32  of the eligible customer within 90 days after the date on which the

7-33  application was filed with the commission:

7-34    (a) The application shall be deemed to be approved by the

7-35  commission; and

7-36    (b) The eligible customer shall not begin purchasing energy, capacity

7-37  or ancillary services from the provider pursuant to the proposed

7-38  transaction sooner than 180 days after the date on which the application

7-39  was filed.

7-40    Sec. 21. 1.  For eligible customers whose loads are in the service

7-41  territory of an electric utility that primarily serves densely populated

7-42  counties:

7-43    (a) The amount of energy that each such eligible customer purchases

7-44  from providers of new electric resources before July 1, 2003, must not

7-45  exceed 80 percent of the load of the eligible customer; and

7-46    (b) The aggregate amount of energy that all such eligible customers

7-47  purchase from providers of new electric resources before July 1, 2003,

7-48  must not exceed 50 percent of the difference between the existing supply

7-49  of energy generated in this state that is available to the electric utility and

8-1  the existing demand for energy in this state that is consumed by the

8-2  customers of the electric utility, as determined by the commission.

8-3    2.  An eligible customer that is a nongovernmental commercial or

8-4  industrial end-use customer whose load is in the service territory of an

8-5  electric utility that primarily serves densely populated counties shall not

8-6  purchase energy, capacity or ancillary services from a provider of new

8-7  electric resources unless, as part of the proposed transaction, the eligible

8-8  customer agrees to:

8-9    (a) Contract with the provider to purchase:

8-10      (1) An additional amount of energy which is equal to 10 percent of

8-11  the total amount of energy that the eligible customer is purchasing for its

8-12  own use under the proposed transaction and which is purchased at the

8-13  same price, terms and conditions as the energy purchased by the eligible

8-14  customer for its own use; and

8-15      (2) The capacity and ancillary services associated with the

8-16  additional amount of energy at the same price, terms and conditions as

8-17  the capacity and ancillary services purchased by the eligible customer for

8-18  its own use; and

8-19    (b) Offers to assign the rights to the contract to the electric utility for

8-20  use by the remaining customers of the electric utility.

8-21    3.  If an eligible customer is subject to the provisions of subsection 2,

8-22  the eligible customer shall include with its application filed pursuant to

8-23  section 20 of this act all information concerning the contract offered to

8-24  the electric utility that is necessary for the commission to determine

8-25  whether it is in the best interest of the remaining customers of the electric

8-26  utility for the electric utility to accept the rights to the contract. Such

8-27  information must include, without limitation, the amount of the energy

8-28  and capacity to be purchased under the contract, the price of the energy,

8-29  capacity and ancillary services and the duration of the contract.

8-30  Information concerning the price of the energy, capacity and ancillary

8-31  services and any other terms or conditions of the contract that the

8-32  commission determines are commercially sensitive shall be deemed to be

8-33  confidential, and the commission shall establish a procedure for

8-34  protecting such information from disclosure.

8-35    4.  If the commission determines that the contract:

8-36    (a) Is not in the best interest of the remaining customers of the electric

8-37  utility, the electric utility shall not accept the rights to the contract, and

8-38  the eligible customer is entitled to all rights to the contract.

8-39    (b) Is in the best interest of the remaining customers of the electric

8-40  utility, the electric utility shall accept the rights to the contract and the

8-41  eligible customer shall assign all rights to the contract to the electric

8-42  utility. A contract that is assigned to the electric utility pursuant to this

8-43  paragraph shall be deemed to be an approved part of the resource plan of

8-44  the electric utility and a prudent investment, and the electric utility may

8-45  recover all costs for the energy, capacity and ancillary services acquired

8-46  pursuant to the contract. To the extent practicable, the commission shall

8-47  take actions to ensure that the electric utility uses the energy, capacity

8-48  and ancillary services acquired pursuant to each such contract only for

8-49  the benefit of the remaining customers of the electric utility that are not

9-1  eligible customers, with a preference for the remaining customers of the

9-2  electric utility that are residential customers with small loads.

9-3    Sec. 22. 1.  If an eligible customer is purchasing energy, capacity

9-4  or ancillary services from a provider of new electric resources, the

9-5  eligible customer may, pursuant to tariffs approved by the commission,

9-6  replace some or all, but not less than all at a single time-of-use meter, of

9-7  the energy, capacity or ancillary services purchased from the provider of

9-8  new electric resources with energy, capacity or ancillary services

9-9  purchased from an electric utility.

9-10    2.  The tariffs approved by the commission pursuant to this section

9-11  must include, without limitation:

9-12    (a) Provisions requiring the eligible customer to pay any incremental

9-13  costs that are incurred by the electric utility to provide energy to the

9-14  eligible customer;

9-15    (b) Provisions requiring the eligible customer to provide reasonable

9-16  and adequate notice to the electric utility;

9-17    (c) Provisions establishing minimum terms during which the eligible

9-18  customer must continue to purchase energy from the electric utility; and

9-19    (d) Any other provisions that the commission determines are

9-20  necessary and reasonable to carry out and enforce the provisions of this

9-21  section.

9-22    Sec. 23. 1.  A provider of new electric resources shall not sell

9-23  energy, capacity or ancillary services to an eligible customer unless the

9-24  customer has a time-of-use meter installed at the point of delivery of

9-25  energy to the eligible customer.

9-26    2.  An electric utility shall install a time-of-use meter at each point of

9-27  delivery of energy to the eligible customer if the eligible customer does

9-28  not have a time-of-use meter at that point of delivery. The eligible

9-29  customer shall pay all costs for the time-of-use meter and for installation

9-30  of the time-of-use meter by the electric utility.

9-31    3.  Not more than one person or entity may sell the energy that is

9-32  delivered to an eligible customer through any one time-of-use meter.

9-33    4.  The provisions of this section do not prohibit:

9-34    (a) An eligible customer from having more than one time-of-use meter

9-35  installed for the same service location; or

9-36    (b) An eligible customer from installing any other meter or equipment

9-37  that is necessary or appropriate to the transaction with the provider, if

9-38  such a meter or equipment is otherwise consistent with system reliability.

9-39    Sec. 24. 1.  An electric utility shall provide all transmission,

9-40  distribution, metering and other components of electric service that are

9-41  necessary for a provider of new electric resources to sell energy, capacity

9-42  and ancillary services to an eligible customer pursuant to the provisions

9-43  of this chapter. An electric utility shall provide each such component of

9-44  electric service pursuant to the tariffs and service agreements filed with

9-45  and approved by the appropriate regulatory authorities having

9-46  jurisdiction over each such component of electric service.

9-47    2.  For each such component of electric service that is within the

9-48  jurisdiction of the commission, the commission shall establish just,

9-49  reasonable and nondiscriminatory rates.

10-1    3.  The provisions of this chapter do not enlarge or expand any

10-2  existing rights under federal law or create any other rights with regard to

10-3  the transmission system of the electric utility.

10-4    4.  When providing service pursuant to this chapter, an electric utility

10-5  is subject to all applicable statutes and regulations of this state and the

10-6  United States.

10-7    Sec. 25. Not later than 30 days after the end of each calendar

10-8  quarter, the commission shall submit to the legislative commission a

10-9  written report which summarizes for that calendar quarter:

10-10  1.  Each application which was filed with the commission pursuant to

10-11  the provisions of this chapter and which requested approval of a

10-12  proposed transaction between an eligible customer and a provider of new

10-13  electric resources;

10-14  2.  The information that the eligible customer included with the

10-15  application;

10-16  3.  The findings of the commission concerning the effect of the

10-17  proposed transaction on the public interest; and

10-18  4.  Whether the commission approved the application and, if so, the

10-19  effective date of the proposed transaction, the terms and conditions of the

10-20  proposed transaction, and the terms, conditions and payments ordered by

10-21  the commission.

10-22  Sec. 26. The commission shall adopt regulations to carry out and

10-23  enforce the provisions of this chapter.

10-24  Sec. 27. NRS 703.025 is hereby amended to read as follows:

10-25  703.025  1.  The commission, by majority vote, shall organize the

10-26  commission into sections, alter the organization of the commission and

10-27  reassign responsibilities and duties of the sections of the commission as the

10-28  commission deems necessary to provide:

10-29  (a) Advice and guidance to the commission on economic policies

10-30  relating to utilities under the jurisdiction of the commission, and the

10-31  regulation of such utilities;

10-32  (b) Administrative, technical, legal and support services to the

10-33  commission; and

10-34  (c) For the regulation of utilities governed by the commission and the

10-35  services offered by such utilities, including, but not limited to, licensing of

10-36  such utilities and services and the resolution of consumer complaints.

10-37  2.  The commission shall:

10-38  (a) Formulate the policies of the various sections of the commission;

10-39  (b) Coordinate the activities of the various sections of the commission;

10-40  (c) If customers are authorized by a specific statute to obtain a

10-41  competitive, discretionary or potentially competitive utility service, take

10-42  any actions which are consistent with the statute and which are necessary

10-43  to [encourage and enhance:

10-44     (1) A] :

10-45     (1) Ensure, before a determination is made to deregulate a

10-46  particular utility service or market, that a sufficient number of providers

10-47  of the competitive, discretionary or potentially competitive utility service

10-48  exist so that customers are able to benefit from the competitive market;

11-1      (2) Provide for an orderly and efficient transition from the

11-2  regulated market to the competitive market and ensure that the

11-3  transition, when completed, will not unreasonably prejudice or

11-4  disadvantage any class of customers or any provider of the competitive,

11-5  discretionary or potentially competitive utility service;

11-6      (3) Encourage and enhance the competitive market for the provision

11-7  of [that] the competitive, discretionary or potentially competitive utility

11-8  service to customers [in this state; and

11-9      (2) The] ; and

11-10     (4) Encourage and enhance the reliability and safety of the

11-11  provision of [that] the competitive, discretionary or potentially competitive

11-12  utility service [within that competitive market;] to customers; and

11-13  (d) Adopt such regulations consistent with law as the commission

11-14  deems necessary for the operation of the commission and the enforcement

11-15  of all laws administered by the commission.

11-16  3.  Before reorganizing the commission, the commission shall submit

11-17  the plan for reorganization to:

11-18  (a) The director of the legislative counsel bureau for transmittal to the

11-19  appropriate legislative committee and the interim finance committee; and

11-20  (b) The director of the department of administration.

11-21  Sec. 28. NRS 703.030 is hereby amended to read as follows:

11-22  703.030  1.  The commission consists of [three] five commissioners

11-23  appointed by the governor . [for terms of] After the initial terms, the term

11-24  of each commissioner is 4 years.

11-25  2.  The governor shall appoint [as members of the commission

11-26  persons] :

11-27  (a) One commissioner to represent the general public.

11-28  (b) Four commissioners who have at least 2 years of experience in one

11-29  or more of the following fields:

11-30  [(a)] (1) Accounting.

11-31  [(b)] (2) Business administration.

11-32  [(c)] (3) Finance or economics.

11-33  [(d)] (4) Administrative law.

11-34  [(e)] (5) Professional engineering.

11-35  Not more than two of the commissioners appointed pursuant to this

11-36  paragraph may be from the same field of experience.

11-37  3.  Not more than [two] three of the commissioners may be [:

11-38  (a) Members] members of the same political party.

11-39  [(b) From the same field of experience.]

11-40  4.  A vacancy on the commission must be filled for the remainder of

11-41  the unexpired term in the same manner as the original appointment.

11-42  Sec. 29. NRS 703.070 is hereby amended to read as follows:

11-43  703.070  The governor shall designate one of the commissioners to be

11-44  chairman, whose term as chairman shall be at the pleasure of the governor.

11-45  [The chairman shall serve as the executive officer of the commission.]

11-46  Sec. 30. NRS 703.110 is hereby amended to read as follows:

11-47  703.110  1.  [The] Except as otherwise provided in subsection 2, the

11-48  majority of the commissioners have full power to act in all matters within

12-1  [their jurisdiction.] the jurisdiction of the commission and shall exercise

12-2  all the powers of the commission.

12-3    2.  If [two] the majority of the commissioners are disqualified or if

12-4  there are [two] vacancies within the majority of the commission, the

12-5  remaining commissioners or, if only one commissioner is remaining, the

12-6  remaining commissioner [or] has full power to act in all matters within

12-7  the jurisdiction of the commission and shall exercise all the powers of the

12-8  commission.

12-9    3.  Except as otherwise provided in this chapter, all hearings and

12-10  meetings conducted by the commission must be open to the public.

12-11  Sec. 31. NRS 703.130 is hereby amended to read as follows:

12-12  703.130  1.  The commission shall appoint a deputy commissioner

12-13  who shall serve in the unclassified service of the state.

12-14  2.  The commission shall appoint a secretary who shall perform such

12-15  administrative and other duties as are prescribed by the commission. The

12-16  commission shall also appoint an assistant secretary.

12-17  3.  The commission may employ such other clerks, experts or engineers

12-18  as may be necessary.

12-19  4.  Except as otherwise provided in this subsection, any person who is

12-20  employed by the commission in a full-time position that is in the

12-21  unclassified service of the state and whose aggregate length of service in

12-22  all positions with the commission exceeds 1 year:

12-23  (a) Shall be deemed to be a permanent classified employee of the state

12-24  pursuant to chapter 284 of NRS exclusively for the purposes of

12-25  discipline, demotion, suspension and dismissal; and

12-26  (b) Must not be disciplined, demoted, suspended or dismissed in a

12-27  manner that is inconsistent with the provisions of chapter 284 of NRS

12-28  and the regulations adopted pursuant thereto, as those provisions and

12-29  regulations are applied to a permanent classified employee of the

12-30  state.

12-31  The provisions of this subsection do not apply to any person who is

12-32  serving as a commissioner or deputy commissioner or as a hearing

12-33  officer or legal counsel for the commission.

12-34  5.  Except as otherwise provided in subsection [5,] 6, the commission:

12-35  (a) May appoint one or more hearing officers for a period specified by

12-36  the commission to conduct proceedings or hearings that may be conducted

12-37  by the commission pursuant to chapters 704, 704A, 705, 708 and 711 of

12-38  NRS [.] and sections 3 to 26, inclusive, of this act.

12-39  (b) Shall prescribe by regulation the procedure for appealing a decision

12-40  of a hearing officer to the commission.

12-41  [5.] 6. The commission shall not appoint a hearing officer to conduct

12-42  proceedings or hearings :

12-43  (a) In any matter pending before the commission pursuant to sections

12-44  8 to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; or

12-45  (b) In any matter pending before the commission pursuant to NRS

12-46  704.070 to 704.110, inclusive, and sections 48 to 52, inclusive, of this act

12-47  in which an electric utility has filed a general rate application or an

12-48  application to clear its deferred accounts.

13-1    7.  As used in this section, “electric utility” has the meaning ascribed

13-2  to it in section 19 of Assembly Bill No. 369 of this session.

13-3    Sec. 32. NRS 703.147 is hereby amended to read as follows:

13-4    703.147  1.  The public utilities commission regulatory fund is hereby

13-5  created as a special revenue fund. All money collected by the commission

13-6  pursuant to law must be deposited in the state treasury for credit to the

13-7  fund. Money collected [for] by the commission:

13-8    (a) For the use of the consumer’s advocate of the bureau of consumer

13-9  protection in the office of the attorney general must be transferred

13-10  pursuant to the provisions of subsection 8 of NRS 704.035.

13-11  (b) For the use of the task force for renewable energy and energy

13-12  conservation must be transferred pursuant to the provisions of subsection

13-13  5 of section 47 of this act.

13-14  2.  Money in the fund which belongs to the commission may be used

13-15  only to defray the costs of:

13-16  (a) Maintaining staff and equipment to regulate adequately public

13-17  utilities and other persons subject to the jurisdiction of the commission.

13-18  (b) Participating in all rate cases involving those persons.

13-19  (c) Audits, inspections, investigations, publication of notices, reports

13-20  and retaining consultants connected with that regulation and participation.

13-21  (d) The salaries, travel expenses and subsistence allowances of the

13-22  members of the commission.

13-23  3.  All claims against the fund must be paid as other claims against the

13-24  state are paid.

13-25  4.  The commission must furnish upon request a statement showing the

13-26  balance remaining in the fund as of the close of the preceding fiscal year.

13-27  Sec. 33. NRS 703.150 is hereby amended to read as follows:

13-28  703.150  The commission shall [supervise] :

13-29  1.  Supervise and regulate the operation and maintenance of public

13-30  utilities and other persons named and defined in chapters 704, 704A and

13-31  708 of NRS pursuant to the provisions of those chapters.

13-32  2.  Carry out the purposes and provisions of sections 3 to 26,

13-33  inclusive, of this act and any other specific statute relating to the powers

13-34  and duties of the commission.

13-35  Sec. 34. NRS 703.164 is hereby amended to read as follows:

13-36  703.164  1.  The commission may employ, or retain on a contract

13-37  basis, legal counsel who shall:

13-38  (a) Except as otherwise provided in subsection 2, be counsel and

13-39  attorney for the commission in all actions, proceedings and hearings.

13-40  (b) Prosecute in the name of the [public utilities commission of Nevada]

13-41  commission all civil actions for the enforcement of chapters 704, 704A,

13-42  705 and 708 of NRS and sections 3 to 26, inclusive, of this act and for the

13-43  recovery of any penalty or forfeiture provided for therein.

13-44  (c) Generally aid the commission in the performance of its duties and

13-45  the enforcement of chapters 704, 704A, 705 and 708 of NRS [.] and

13-46  sections 3 to 26, inclusive, of this act.

13-47  2.  Each district attorney shall:

14-1    (a) Prosecute any violation of chapter 704, 704A, 705, 708 or 711 of

14-2  NRS and sections 3 to 26, inclusive, of this act for which a criminal

14-3  penalty is provided and which occurs in his county.

14-4    (b) Aid in any investigation, prosecution, hearing or trial held under the

14-5  provisions of chapter 704, 704A, 705, 708 or 711 of NRS and sections 3 to

14-6  26, inclusive, of this act and, at the request of the commission or its legal

14-7  counsel, act as counsel and attorney for the commission.

14-8    3.  The attorney general shall, if the district attorney fails or refuses to

14-9  do so, prosecute all violations of the laws of this state by public utilities

14-10  under the jurisdiction of the commission and their officers, agents and

14-11  employees.

14-12  4.  The attorney general is not precluded from appearing in or moving

14-13  to intervene in any action and representing the interest of the State of

14-14  Nevada in any action in which the commission is a party and is represented

14-15  by independent counsel.

14-16  Sec. 35. NRS 703.197 is hereby amended to read as follows:

14-17  703.197  1.  The commission may collect fees for the filing of any

14-18  official document required by this chapter and chapters 704, 704A, 705 and

14-19  708 of NRS and sections 3 to 26, inclusive, of this act or by a regulation

14-20  of the commission.

14-21  2.  Filing fees may not exceed:

14-22  (a) For applications, $200.

14-23  (b) For petitions seeking affirmative relief, $200.

14-24  (c) For each tariff page which requires public notice and is not attached

14-25  to an application, $10. If more than one page is filed at one time, the total

14-26  fee may not exceed the cost of notice and publication.

14-27  (d) For all other documents which require public notice, $10.

14-28  3.  If an application or other document is rejected by the commission

14-29  because it is inadequate or inappropriate, the filing fee must be returned.

14-30  4.  The commission may not charge any fee for filing a complaint.

14-31  Sec. 36. NRS 703.320 is hereby amended to read as follows:

14-32  703.320  1.  In any matter pending before the commission, if a hearing

14-33  is required by a specific statute or is otherwise required by the commission,

14-34  the commission shall give notice of the pendency of the matter to all

14-35  persons entitled to notice of the hearing. The commission shall by

14-36  regulation specify:

14-37  (a) The manner of giving notice in each type of proceeding; and

14-38  (b) The persons entitled to notice in each type of proceeding.

14-39  2.  The commission shall not dispense with a hearing [in] :

14-40  (a) In any matter pending before the commission pursuant to sections 8

14-41  to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; or

14-42  (b) Except as otherwise provided in subsection 4 of NRS 704.100, in

14-43  any matter pending before the commission pursuant to NRS 704.070 to

14-44  704.110, inclusive, and sections 48 to 52, inclusive, of this act in which

14-45  an electric utility has filed a general rate application or an application to

14-46  clear its deferred accounts.

14-47  3.  In any other matter pending before the commission, the commission

14-48  may dispense with a hearing and act upon the matter pending unless,

14-49  within 10 days after the date of the notice of pendency, a person entitled to

15-1  notice of the hearing files with the commission a request that the hearing

15-2  be held. If such a request for a hearing is filed, the commission shall give at

15-3  least 10 days’ notice of the hearing.

15-4    4.  As used in this section, “electric utility” has the meaning ascribed

15-5  to it in section 19 of Assembly Bill No. 369 of this session.

15-6    Sec. 37. NRS 703.374 is hereby amended to read as follows:

15-7    703.374  1.  A court of competent jurisdiction, after hearing, may

15-8  issue an injunction suspending or staying any final order of the commission

15-9  if:

15-10  (a) The applicant has filed a motion for a preliminary injunction;

15-11  (b) The applicant has served the motion on the commission and other

15-12  interested parties within 20 days after the rendition of the order on which

15-13  the complaint is based;

15-14  (c) The court finds there is a reasonable likelihood that the applicant

15-15  will prevail on the merits of the matter and will suffer irreparable injury if

15-16  injunctive relief is not granted; and

15-17  (d) The applicant files a bond or other undertaking to secure the adverse

15-18  parties in such manner as the court finds sufficient.

15-19  2.  The decision of the commission on each matter considered shall be

15-20  deemed reasonable and just until set aside by the court . [, and in] In all

15-21  actions for an injunction or [otherwise] for any other relief, the burden of

15-22  proof is upon the party attacking or resisting the order of the commission to

15-23  show by clear and satisfactory evidence that the order is unlawful [,] or

15-24  unreasonable . [, as the case may be.]

15-25  3.  If an injunction is granted by the court and the order complained of

15-26  is one which [permanently suspends] :

15-27  (a) Disapproves a public utility’s proposed changes in a schedule of

15-28  rates [and charges or a] , or any part thereof , [filed by any public utility]

15-29  pursuant to NRS 704.070 to 704.110, inclusive, [or which otherwise] and

15-30  sections 48 to 52, inclusive, of this act; or

15-31  (b) Otherwise prevents the proposed changes in the schedule , or any

15-32  part thereof , from taking effect,

15-33  the public utility complaining may [keep in effect or put] place into

15-34  effect [, as the case may be, the suspended] the proposed changes in the

15-35  schedule , or any part thereof , pending final determination by the court

15-36  having jurisdiction, by filing a bond with the court in such an amount as

15-37  the court may fix, conditioned upon the refund to persons entitled to the

15-38  excess amount if the [rate or rates so suspended] proposed changes in the

15-39  schedule, or any part thereof, are finally determined by the court to be

15-40  excessive.

15-41  Sec. 38.  NRS 703.377 is hereby amended to read as follows:

15-42  703.377  1.  [No] Any certificate of public convenience and necessity,

15-43  permit or license issued or transferred in accordance with the [terms]

15-44  provisions of NRS [704.005] 704.001 to 704.751, inclusive, is [either] not

15-45  a franchise or irrevocable.

15-46  2.  Upon receipt of a written complaint or on its own motion, the

15-47  commission may, after investigation and hearing, revoke any certificate,

15-48  permit or license, [but as to] except that the commission may not revoke

15-49  the certificate of a public utility [only if] unless the commission has

16-1  arranged for another public utility to provide the service for which the

16-2  certificate was granted.

16-3    3.  [The proceedings thereafter are governed by] If the commission

16-4  revokes any certificate, permit or license, the person who held the

16-5  certificate, permit or license may seek judicial review pursuant to the

16-6  provisions of NRS 703.373 to 703.376, inclusive.

16-7    Sec. 39. NRS 703.380 is hereby amended to read as follows:

16-8    703.380  1.  Unless another penalty is specifically provided, any

16-9  public utility or any officer, agent or employee of a public utility who:

16-10  (a) Violates any of the provisions of this chapter or chapters 704, 705

16-11  and 708 of NRS [;] and sections 3 to 26, inclusive, of this act;

16-12  (b) Violates any rule or regulation of the commission; or

16-13  (c) Fails, neglects or refuses to obey any order of the commission or

16-14  any order of a court requiring compliance with an order of the

16-15  commission,

16-16  is liable for a civil penalty not to exceed $1,000 per day for each day of the

16-17  violation and not to exceed $100,000 for any related series of violations.

16-18  2.  The amount of any civil penalty to be imposed pursuant to this

16-19  section, and the propriety of any compromise of a penalty, must be

16-20  determined by a court of competent jurisdiction upon the complaint of the

16-21  commission.

16-22  3.  Subject to the approval of the court, any civil penalty may be

16-23  compromised by the commission. In determining the amount of the

16-24  penalty, or the amount agreed upon in compromise, the appropriateness of

16-25  the penalty to the size of the business of the person charged, the gravity of

16-26  the violation and the good faith of the person charged in attempting to

16-27  achieve compliance, after notification of a violation, must be considered.

16-28  4.  Any penalty assessed pursuant to this section is not a cost of service

16-29  by the public utility and may not be included in any new application by a

16-30  public utility for a rate adjustment or rate increase.

16-31  Sec. 40.  Chapter 704 of NRS is hereby amended by adding thereto the

16-32  provisions set forth as sections 41 to 52, inclusive, of this act.

16-33  Sec. 41. “Biomass” means any organic matter that is available on a

16-34  renewable basis, including, without limitation:

16-35  1.  Agricultural crops and agricultural wastes and residues;

16-36  2.  Wood and wood wastes and residues;

16-37  3.  Animal wastes;

16-38  4.  Municipal wastes; and

16-39  5.  Aquatic plants.

16-40  Sec. 42. “Consumer’s advocate” means the consumer’s advocate of

16-41  the bureau of consumer protection in the office of the attorney general.

16-42  Sec. 43. 1.  “Renewable energy” means:

16-43  (a) Biomass;

16-44  (b) Hydrogen;

16-45  (c) Geothermal energy;

16-46  (d) Solar energy;

16-47  (e) Waterpower; and

16-48  (f) Wind.

17-1    2.  The term does not include coal, natural gas, oil, propane or any

17-2  other fossil fuel, or nuclear energy.

17-3    Sec. 44. 1.  For the purposes of protecting the health of residential

17-4  customers who receive gas, water or electricity from public utilities, the

17-5  commission shall adopt regulations that:

17-6    (a) Establish the criteria that will be used to determine when a public

17-7  utility is required to postpone its termination of utility service to the

17-8  residence of a residential customer who has failed to pay for such

17-9  service. Such criteria may be based, in whole or in part, upon the

17-10  residential customer’s ability to pay.

17-11  (b) Require a public utility to postpone its termination of utility service

17-12  to the residence of a residential customer who has failed to pay for such

17-13  service if the residential customer satisfies the criteria established by the

17-14  commission and:

17-15     (1) On the date of termination, the residence of the residential

17-16  customer is located in an area that is experiencing a climatic extreme

17-17  and the utility service that will be terminated is necessary to control the

17-18  temperature of the residence of the residential customer; or

17-19     (2) Termination of the utility service is reasonably likely to threaten

17-20  the health of an occupant of the residence of the residential customer.

17-21  2.  In addition to the regulations adopted pursuant to subsection 1,

17-22  for the purposes of regulating public utilities that provide gas, water or

17-23  electricity to landlords who pay for the utility service and who distribute

17-24  or resell the gas, water or electricity to one or more residential tenants,

17-25  the commission shall adopt regulations that:

17-26  (a) Require a public utility to provide reasonable and adequate notice

17-27  to each such residential tenant before the public utility terminates utility

17-28  service because the landlord has failed to pay for such service.

17-29  (b) Provide such residential tenants and their occupants with

17-30  protections that are similar to the protections afforded to residential

17-31  customers and their occupants pursuant to subsection 1.

17-32  (c) Establish procedures and priorities for the resumption of utility

17-33  service by a public utility after it terminates utility service because the

17-34  landlord has failed to pay for such service.

17-35  (d) Establish any additional protections that the commission

17-36  determines are necessary to protect such residential tenants for the

17-37  period before or after a public utility terminates utility service because

17-38  the landlord has failed to pay for such service.

17-39  3.  A public utility shall not terminate utility service for gas, water or

17-40  electricity without complying with the regulations adopted by the

17-41  commission pursuant to this section.

17-42  4.  As used in this section:

17-43  (a) “Gas” includes, without limitation, liquefied petroleum gas and

17-44  natural gas.

17-45  (b) “Landlord” means a landlord who is subject, in whole or in part,

17-46  to the provisions of chapter 118A or 118B of NRS.

17-47  Sec. 45.  1.  If a public utility purchases electricity for resale

17-48  pursuant to multiple contracts or existing obligations for the purchase of

17-49  power, the public utility shall, to the extent practicable, ensure that the

18-1  duration of such contracts or obligations are varied to protect the

18-2  customers of the public utility from the effects of fluctuations in the price

18-3  of electricity.

18-4    2.  In determining whether the purchase of electricity for resale by a

18-5  public utility is in the public interest pursuant to NRS 704.320, the

18-6  commission shall consider whether the public utility is taking prudent

18-7  actions to ensure that the duration of its contracts and obligations for the

18-8  purchase of power are varied to protect the customers of the public utility

18-9  from the effects of fluctuations in the price of electricity.

18-10  Sec. 46.  1.  If any person intends to construct an electric

18-11  generating unit or increase the generating capacity of an electric

18-12  generating unit and the commission has jurisdiction concerning the

18-13  matter, the commission shall consider, in determining whether to grant:

18-14  (a) A certificate of public convenience and necessity;

18-15  (b) A permit for construction pursuant to NRS 704.820 to 704.900,

18-16  inclusive; or

18-17  (c) Any other approval within the jurisdiction of the

18-18  commission,

18-19  whether the electric generating unit or the increased generating capacity

18-20  of the electric generating unit will benefit the residents of this state by

18-21  increasing the quantity of electricity that will be available for purchase in

18-22  this state.

18-23  2.  As used in this section:

18-24  (a) “Electric generating unit” means an electric generating unit that

18-25  uses any form of energy to generate electricity.

18-26  (b) “Person” means:

18-27     (1) A natural person;

18-28     (2) Any form of business or social organization and any other

18-29  nongovernmental legal entity, including, without limitation, a

18-30  corporation, partnership, association, trust or unincorporated

18-31  organization;

18-32     (3) A government or an agency or instrumentality of a government,

18-33  including, without limitation, this state or an agency or instrumentality

18-34  of this state; and

18-35     (4) A political subdivision of this state or of any other government

18-36  or an agency or instrumentality of a political subdivision of this state or

18-37  of any other government.

18-38  Sec. 47.  1.  The commission shall levy and collect an assessment

18-39  from each person who operates a new electric generating unit in this

18-40  state, whether or not the person or the new electric generating unit is

18-41  otherwise subject to regulation by the commission.

18-42  2.  The commission shall levy the assessment not more than once on

18-43  each new electric generating unit which is capable of being operated

18-44  independently from any other electric generating unit that is or will be

18-45  part of or connected to any associated facilities. The commission shall

18-46  levy the assessment on each new electric generating unit whether or not

18-47  any other electric generating unit that is or will be part of or connected to

18-48  any associated facilities has begun commercial operation or has had an

18-49  assessment levied on it pursuant to this section.

19-1    3.  The amount of the assessment levied on each new electric

19-2  generating unit must equal the product obtained by multiplying the

19-3  maximum generating capacity of the new electric generating unit, as

19-4  determined by the commission and expressed in megawatts, by the sum of

19-5  $1,000.

19-6    4.  Each person who is required to pay the assessment levied on a new

19-7  electric generating unit shall pay the full assessment to the commission

19-8  not later than 30 days after the date on which the new electric generating

19-9  unit begins, in whole or in part, commercial operation.

19-10  5.  The commission shall, on a quarterly basis, transfer any money

19-11  collected pursuant to this section to the state treasurer for credit to the

19-12  trust fund for renewable energy and energy conservation, which is

19-13  created by section 104 of this act.

19-14  6.  As used in this section:

19-15  (a) “New electric generating unit” means an electric generating unit

19-16  that:

19-17     (1) Uses a form of energy other than renewable energy as its

19-18  primary source of energy to generate electricity sold at wholesale or

19-19  retail;

19-20     (2) Has a maximum generating capacity of 1 megawatt or more;

19-21  and

19-22     (3) Begins, in whole or in part, commercial operation on or after

19-23  the effective date of this act, whether or not construction began on the

19-24  electric generating unit before the effective date of this act.

19-25  (b) “Person” means:

19-26     (1) A natural person;

19-27     (2) Any form of business or social organization and any other

19-28  nongovernmental legal entity, including, without limitation, a

19-29  corporation, partnership, association, trust or unincorporated

19-30  organization;

19-31     (3) A government or an agency or instrumentality of a government,

19-32  including, without limitation, this state or an agency or instrumentality

19-33  of this state; and

19-34     (4) A political subdivision of this state or of any other government

19-35  or an agency or instrumentality of a political subdivision of this state or

19-36  of any other government.

19-37  (c) “Renewable energy” means:

19-38     (1) Biomass;

19-39     (2) Hydrogen;

19-40     (3) Geothermal energy;

19-41     (4) Solar energy;

19-42     (5) Waterpower; and

19-43     (6) Wind.

19-44  The term does not include coal, natural gas, oil, propane or any other

19-45  fossil fuel, or nuclear energy.

19-46  Sec. 48. As used in NRS 704.070 to 704.110, inclusive, and sections

19-47  48 to 52, inclusive, of this act, unless the context otherwise requires, the

19-48  words and terms defined in sections 49, 50 and 51 of this act have the

19-49  meanings ascribed to them in those sections.

20-1    Sec. 49. “Application to make changes in any schedule” and

20-2  “application” include, without limitation:

20-3    1.  A general rate application;

20-4    2.  An application to recover the increased cost of purchased fuel,

20-5  purchased power, or natural gas purchased for resale; and

20-6    3.  An application to clear deferred accounts.

20-7    Sec. 50. “Rate” means any individual or joint rate, toll or charge

20-8  imposed by a public utility for a service performed or product furnished

20-9  by the public utility.

20-10  Sec. 51. “Schedule” means any schedule that establishes or

20-11  otherwise sets the rates for a public utility and any individual or joint

20-12  rule, regulation, practice, classification or measurement that in any

20-13  manner affects those rates.

20-14  Sec. 52. For the purposes of NRS 704.070 to 704.110, inclusive, and

20-15  sections 48 to 52, inclusive, of this act, a public utility shall be deemed to

20-16  make changes in a schedule if the public utility implements a new

20-17  schedule or amends an existing schedule.

20-18  Sec. 53. NRS 704.005 is hereby amended to read as follows:

20-19  704.005  As used in this chapter, unless the context otherwise requires,

20-20  the words and terms defined in NRS 704.010 to 704.030, inclusive, and

20-21  sections 41 and 42 of this act have the meanings ascribed to them in those

20-22  sections.

20-23  Sec. 54. NRS 704.033 is hereby amended to read as follows:

20-24  704.033  1.  The commission shall levy and collect an annual

20-25  assessment from all public utilities subject to the jurisdiction of the

20-26  commission.

20-27  2.  Except as otherwise provided in subsection 3, the annual assessment

20-28  must be:

20-29  (a) For the use of the commission, not more than 3.50 mills; and

20-30  (b) For the use of the consumer’s advocate , [of the bureau of consumer

20-31  protection in the office of the attorney general,] not more than

20-32  0.75 mills,

20-33  on each dollar of gross operating revenue derived from the intrastate

20-34  operations of such utilities in the State of Nevada, except that the minimum

20-35  assessment in any 1 year must be $10. The total annual assessment must be

20-36  not more than 4.25 mills.

20-37  3.  For railroads the total annual assessment must be the amount levied

20-38  for the use of the commission pursuant to paragraph (a) of subsection 2.

20-39  The levy for the use of the consumer’s advocate must not be assessed

20-40  against railroads.

20-41  4.  The gross operating revenue of the utilities must be determined for

20-42  the preceding calendar year. In the case of:

20-43  (a) Telephone utilities, except as otherwise provided in paragraph (c),

20-44  the revenue shall be deemed to be all intrastate revenues that are

20-45  considered by the commission for the purpose of establishing rates.

20-46  (b) Railroads, the revenue shall be deemed to be the revenue received

20-47  only from freight and passenger intrastate movements.

20-48  (c) All public utilities, the revenue does not include the proceeds of any

20-49  commodity, energy or service furnished to another public utility for resale.

21-1    Sec. 55. NRS 704.035 is hereby amended to read as follows:

21-2    704.035  1.  On or before June 1 of each year, the commission shall

21-3  mail revenue report forms to all public utilities under its jurisdiction, to the

21-4  address of those utilities on file with the commission. The revenue report

21-5  form serves as notice of the commission’s intent to assess the utilities, but

21-6  failure to notify any utility does not invalidate the assessment with respect

21-7  thereto.

21-8    2.  Each public utility subject to the provisions of NRS 704.033 shall

21-9  complete the revenue report referred to in subsection 1, compute the

21-10  assessment and return the completed revenue report to the commission

21-11  accompanied by payment of the assessment and any penalty due, pursuant

21-12  to the provisions of subsection 5.

21-13  3.  The assessment is due on July 1 of each year, but may, at the option

21-14  of the public utility, be paid quarterly on July 1, October 1, January 1 and

21-15  April 1.

21-16  4.  The assessment computed by the utility is subject to review and

21-17  audit by the commission, and the amount of the assessment may be

21-18  adjusted by the commission as a result of the audit and review.

21-19  5.  Any public utility failing to pay the assessment provided for in

21-20  NRS 704.033 on or before August 1, or if paying quarterly, on or before

21-21  August 1, October 1, January 1 or April 1, shall pay, in addition to such

21-22  assessment, a penalty of 1 percent of the total unpaid balance for each

21-23  month or portion thereof that the assessment is delinquent, or $10,

21-24  whichever is greater, but no penalty may exceed $1,000 for each

21-25  delinquent payment.

21-26  6.  When a public utility sells, transfers or conveys substantially all of

21-27  its assets or certificate of public convenience and necessity, the

21-28  commission shall determine, levy and collect the accrued assessment for

21-29  the current year not later than 30 days after the sale, transfer or

21-30  conveyance, unless the transferee has assumed liability for the assessment.

21-31  For purposes of this subsection the jurisdiction of the commission over the

21-32  selling, transferring or conveying public utility continues until it has paid

21-33  the assessment.

21-34  7.  The commission may bring an appropriate action in its own name

21-35  for the collection of any assessment and penalty which is not paid as

21-36  provided in this section.

21-37  8.  The commission shall, on a quarterly basis, transfer to the account

21-38  for the consumer’s advocate [of the bureau of consumer protection in the

21-39  office of the attorney general] that portion of the assessments collected

21-40  which belongs to the consumer’s advocate.

21-41  Sec. 56. NRS 704.070 is hereby amended to read as follows:

21-42  704.070  Unless exempt under the provisions of NRS 704.075 ,

21-43  704.095 or 704.097:

21-44  1.  [Every] Each public utility shall file with the commission, within a

21-45  time to be fixed by the commission, a copy of all schedules [which] that

21-46  are currently in force for the public utility. Such schedules must be open

21-47  to public inspection . [, showing all rates, tolls and charges which it has

21-48  established and which are in force at the time for any service performed or

22-1  product furnished in connection therewith by any public utility controlled

22-2  and operated by it.

22-3    2.  All rules or regulations that in any manner affect the rates charged

22-4  or to be charged for any service or product must be filed with that

22-5  schedule.]

22-6    2.  A copy of each schedule that is currently in force for the public

22-7  utility, or so much of the schedule as the commission deems necessary

22-8  for inspection by the public, must be:

22-9    (a) Printed in plain type and posted in each office of the public utility

22-10  where payments are made to the public utility by its customers; and

22-11  (b) Open to inspection by the public and in such form and place as to

22-12  be readily accessible to and conveniently inspected by the public.

22-13  Sec. 57.  NRS 704.075 is hereby amended to read as follows:

22-14  704.075  1.  As used in this section, with respect to the sale of natural

22-15  gas:

22-16  (a) “Generating customer” means a customer who generates electricity

22-17  by burning natural gas.

22-18  (b) “Industrial customer” means a customer engaged primarily in

22-19  manufacturing or processing which changes raw or unfinished materials

22-20  into another form or creates another product.

22-21  (c) “Large commercial customer” means a customer whose

22-22  requirements equal or exceed [50 thousand] 50,000 cubic feet of natural

22-23  gas per day on any day and which is an institution, an agency of federal,

22-24  state or local government, or engaged primarily in renting out offices or

22-25  other commercial space, in providing lodging or in the sale of other goods

22-26  or services.

22-27  2.  The commission shall establish standards for the setting, increase or

22-28  decrease of rates [and charges] for natural gas to generating, industrial and

22-29  large commercial customers. These standards must authorize increases or

22-30  decreases on less than 30 days’ notice. Establishing different classes of

22-31  customers, and charging different rates to customers of the same class, for

22-32  these customers do not violate this chapter.

22-33  3.  The commission may, for sales to generating, industrial and large

22-34  commercial customers:

22-35  (a) Exempt the [filing of] rates for natural gas from those provisions of

22-36  NRS [704.080, 704.090,] 704.070, 704.100 and 704.110 [which it] that the

22-37  commission determines are not needed to protect the public interest.

22-38  (b) Authorize the establishment of different classes of customer or the

22-39  charging of different rates for customers of the same class, based on value

22-40  of the service and on the customer’s ability to change from one fuel to

22-41  another.

22-42  Sec. 58.  NRS 704.100 is hereby amended to read as follows:

22-43  704.100  Except as otherwise provided in NRS 704.075 or as may

22-44  otherwise be provided by the commission pursuant to NRS 704.095 [,

22-45  704.097 or 704.275:

22-46  1.  No changes may be made] or 704.097:

22-47  1.  A public utility shall not make changes in any schedule, [including

22-48  schedules of joint rates, or in the rules or regulations affecting any rates or

22-49  charges, except upon 30 days’ notice to the commission, and all changes

23-1  must be plainly indicated, or by filing new schedules in lieu thereof 30

23-2  days before the time the schedules are to take effect. The commission,

23-3  upon application of any public utility, may prescribe a shorter time within

23-4  which a reduction may be made.

23-5    2.  Copies] unless the public utility files with the commission an

23-6  application to make the proposed changes and the commission approves

23-7  the proposed changes pursuant to NRS 704.110.

23-8    2.  A public utility shall post copies of all proposed[,] schedules and

23-9  all new or amended schedules [must be filed and posted in the offices of

23-10  public utilities as required for original schedules.] in the same offices and

23-11  in substantially the same form, manner and places as required by NRS

23-12  704.070 for the posting of copies of schedules that are currently in force.

23-13  3.  A public utility may not set forth as justification for a rate increase

23-14  any items of expense or rate base [which] that previously have been

23-15  considered and disallowed by the commission, [only if] unless those items

23-16  are clearly identified in the application and new facts or considerations of

23-17  policy for each item are advanced in the application to justify a reversal of

23-18  the [commission’s] prior decision[.

23-19  4.  The commission shall determine whether a hearing must be held

23-20  when] of the commission.

23-21  4.  Except as otherwise provided in subsection 5, if the proposed

23-22  change in any schedule [stating a new or revised individual or joint rate,

23-23  fare or charge, or any new or revised individual or joint regulation or

23-24  practice affecting any rate, fare or charge,] will result in an increase in

23-25  annual gross operating revenue , as certified by the applicant [of $2,500 or

23-26  less.] , in an amount that does not exceed $2,500, the commission shall

23-27  determine whether it should dispense with a hearing regarding the

23-28  proposed change.

23-29  5.  If the applicant is a public utility furnishing telephone service and

23-30  the proposed change in any schedule will result in an increase in annual

23-31  gross operating revenue, as certified by the applicant, in an amount that

23-32  does not exceed $50,000 or 10 percent of the applicant’s annual gross

23-33  operating revenue, whichever is less, the commission shall determine

23-34  whether it should dispense with a hearing regarding the proposed

23-35  change.

23-36  6.  In making the determination pursuant to subsection 4 or 5, the

23-37  commission shall first consider all timely written protests, any presentation

23-38  the staff of the commission may desire to present, the application of the

23-39  public utility and any other matters deemed relevant by the commission.

23-40  Sec. 59. NRS 704.110 is hereby amended to read as follows:

23-41  704.110  Except as otherwise provided in NRS 704.075 or as may

23-42  otherwise be provided by the commission pursuant to NRS 704.095 or

23-43  704.097:

23-44  1.  [Whenever there is filed] If a public utility files with the

23-45  commission an application to make changes in any schedule [stating a

23-46  new or revised individual or joint rate or charge, or any new or revised

23-47  individual or joint regulation or practice affecting any rate or charge, or

23-48  any schedule resulting] , including, without limitation, changes that will

23-49  result in a discontinuance, modification or restriction of service, the

24-1  commission [may, upon complaint or upon its own motion without

24-2  complaint, at once, without answer or formal pleading by the interested

24-3  utility, investigate or, upon reasonable notice, conduct a hearing

24-4  concerning] shall investigate the propriety of the [rate, charge,

24-5  classification, regulation, discontinuance, modification, restriction or

24-6  practice.

24-7    2.  Pending the investigation or hearing and the decision thereon, the

24-8  commission, upon delivering to the utility affected thereby a statement in

24-9  writing of its reasons for the suspension, may suspend the operation of the

24-10  schedule and defer the use of the rate, charge, classification, regulation,

24-11  discontinuance, modification, restriction or practice. If the rate, charge,

24-12  classification, regulation, discontinuance, modification, restriction or

24-13  practice is part of:

24-14  (a) A filing made pursuant to subsection 7, the suspension must not be

24-15  effective for more than 90 days beyond the time when the rate, charge,

24-16  classification, regulation, discontinuance, modification, restriction or

24-17  practice would otherwise go into effect.

24-18  (b) Any other filing made pursuant to this section, the suspension must

24-19  not be effective for more than 150 days beyond the time when the rate,

24-20  charge, classification, regulation, discontinuance, modification, restriction

24-21  or practice would otherwise go into effect.

24-22  3.  Whenever there is filed] proposed changes to determine whether to

24-23  approve or disapprove the proposed changes. If an electric utility files

24-24  such an application and the application is a general rate application or

24-25  an application to clear its deferred accounts, the consumer’s advocate

24-26  shall be deemed a party of record.

24-27  2.  Except as otherwise provided in subsection 3, if a public utility

24-28  files with the commission an application to make changes in any

24-29  schedule, not later than 180 days after the date on which the application

24-30  is filed, the commission shall issue a written order approving or

24-31  disapproving, in whole or in part, the proposed changes.

24-32  3.  If a public utility files with the commission [any schedule stating an

24-33  increased individual or joint rate or charge for service or equipment,] a

24-34  general rate application, the public utility shall submit with its application

24-35  a statement showing the recorded results of revenues, expenses,

24-36  investments and costs of capital for its most recent 12 months for which

24-37  data were available when the application was prepared. [During any

24-38  hearing concerning the increased rates or charges determined by the

24-39  commission to be necessary,] In determining whether to approve or

24-40  disapprove any increased rates, the commission shall consider evidence in

24-41  support of the increased rates [or charges] based upon actual recorded

24-42  results of operations for the same 12 months, adjusted for increased

24-43  revenues, any increased investment in facilities, increased expenses for

24-44  depreciation, certain other operating expenses as approved by the

24-45  commission and changes in the costs of securities which are known and are

24-46  measurable with reasonable accuracy at the time of filing and which will

24-47  become effective within 6 months after the last month of those 12 months,

24-48  but [no new rates or charges may be placed] the public utility shall not

24-49  place into effect any increased rates until the changes have been

25-1  experienced and certified by the public utility to the commission [.] and

25-2  the commission has approved the increased rates. The commission shall

25-3  also consider evidence supporting expenses for depreciation, calculated on

25-4  an annual basis, applicable to major components of the public utility’s

25-5  plant placed into service during the recorded test period or the period for

25-6  certification as set forth in the application. Adjustments to revenues,

25-7  operating expenses and costs of securities must be calculated on an annual

25-8  basis. Within 90 days after the [filing with the commission of] date on

25-9  which the certification required [in] by this subsection [, or before the

25-10  expiration of any period of suspension ordered pursuant to subsection 2,] is

25-11  filed with the commission, or within 180 days after the date on which the

25-12  general rate application is filed with the commission, whichever time is

25-13  longer, the commission shall make such order in reference to [those rates

25-14  or charges] the increased rates as is required by this chapter. An electric

25-15  utility shall file a general rate application pursuant to this subsection at

25-16  least once every 24 months.

25-17  4.  [After full investigation or hearing, whether completed before or

25-18  after the date upon which the rate, charge, classification, regulation,

25-19  discontinuance, modification, restriction or practice is to go into effect, the

25-20  commission may make such order in reference to the rate, charge,

25-21  classification, regulation, discontinuance, modification, restriction or

25-22  practice as would be proper in a proceeding initiated after the rate, charge,

25-23  classification, regulation, discontinuance, modification, restriction or

25-24  practice has become effective.

25-25  5.  Except as otherwise provided in subsection 6, whenever] If a public

25-26  utility files with the commission an application to make changes in any

25-27  schedule and the commission does not issue a final written order

25-28  regarding the proposed changes within the time required by this section,

25-29  the proposed changes shall be deemed to be approved by the commission.

25-30  5.  If a public utility files with the commission a general rate

25-31  application [for an increased rate or charge for, or classification, regulation,

25-32  discontinuance, modification, restriction or practice involving service or

25-33  equipment has been filed with the commission, a] , the public utility shall

25-34  not [submit] file with the commission another general rate application until

25-35  all pending general rate applications [for increases in rates submitted] filed

25-36  by that public utility have been decided by the commission unless, after

25-37  application and hearing, the commission determines that a substantial

25-38  financial emergency would exist if the [other application] public utility is

25-39  not permitted to [be submitted] file another general rate application

25-40  sooner. The provisions of this subsection do not prohibit the public utility

25-41  from filing with the commission, while a general rate application is

25-42  pending, an application to recover the increased cost of purchased fuel,

25-43  purchased power, or natural gas purchased for resale pursuant to

25-44  subsection 6 or an application to clear its deferred accounts pursuant to

25-45  subsection 7, if the public utility is otherwise authorized by those

25-46  provisions to file such an application.

25-47  6.  A public utility may file an application to recover the increased cost

25-48  of purchased fuel, purchased power, or natural gas purchased for resale

25-49  once every 30 days. The provisions of this subsection do not apply to an

26-1  electric utility using deferred accounting pursuant to section 19 of [this

26-2  act.] Assembly Bill No. 369 of this session.

26-3    7.  Except as otherwise provided in subsection 8 [, whenever] and

26-4  subsection 4 of NRS 704.100, if an electric utility using deferred

26-5  accounting pursuant to section 19 of [this act] Assembly Bill No. 369 of

26-6  this session files an application to clear its deferred accounts and to change

26-7  one or more of its rates [or charges] based upon changes in the costs for

26-8  purchased fuel or purchased power, the commission, after a public hearing

26-9  and by an appropriate order:

26-10  (a) Shall allow the electric utility to clear its deferred accounts by

26-11  refunding any credit balance or recovering any debit balance over a period

26-12  not to exceed 3 years, as determined by the commission.

26-13  (b) Shall not allow the electric utility to recover any debit balance, or

26-14  portion thereof, in an amount that would result in a rate of return during the

26-15  period of recovery that exceeds the rate of return authorized by the

26-16  commission in the most recently completed rate proceeding for the electric

26-17  utility.

26-18  8.  Before allowing an electric utility to clear its deferred accounts

26-19  pursuant to subsection 7, the commission shall determine whether the costs

26-20  for purchased fuel and purchased power that the electric utility recorded in

26-21  its deferred accounts are recoverable and whether the revenues that the

26-22  electric utility collected from customers in this state for purchased fuel and

26-23  purchased power are properly recorded and credited in its deferred

26-24  accounts. The commission shall not allow the electric utility to recover any

26-25  costs for purchased fuel and purchased power that were the result of any

26-26  practice or transaction that was undertaken, managed or performed

26-27  imprudently by the electric utility.

26-28  9.  [Whenever] If an electric utility files an application to clear its

26-29  deferred accounts pursuant to subsection 7 while a general rate application

26-30  is pending, the electric utility shall:

26-31  (a) Submit with its application to clear its deferred accounts information

26-32  relating to the cost of service and rate design; and

26-33  (b) Supplement its general rate application with the same information, if

26-34  such information was not submitted with the general rate application.

26-35  10.  A utility facility identified in a 3-year plan submitted pursuant to

26-36  NRS 704.741 and accepted by the commission for acquisition or

26-37  construction pursuant to NRS 704.751 and the regulations adopted

26-38  pursuant thereto shall be deemed to be a prudent investment. The utility

26-39  may recover all just and reasonable costs of planning and constructing such

26-40  a facility.

26-41  11.  As used in this section, “electric utility” has the meaning ascribed

26-42  to it in section 19 of [this act.] Assembly Bill No. 369 of this session.

26-43  Sec. 60. NRS 704.329 is hereby amended to read as follows:

26-44  704.329  1.  Except as otherwise provided in [this section , a]

26-45  subsection 6:

26-46  (a) A person shall not merge with, directly acquire, indirectly acquire

26-47  through a subsidiary or affiliate, or otherwise directly or indirectly obtain

26-48  control of a public utility doing business in this state or an entity that holds

26-49  a controlling interest in such a public utility without first submitting to the

27-1  commission an application for authorization of the proposed [merger,

27-2  acquisition or other] transaction and obtaining authorization from the

27-3  commission.

27-4    (b) A public utility doing business in this state shall not merge with,

27-5  directly acquire, indirectly acquire through a subsidiary or affiliate, or

27-6  otherwise directly or indirectly obtain control of another entity without

27-7  first submitting to the commission an application for authorization of the

27-8  proposed transaction and obtaining authorization from the commission.

27-9  The provisions of this paragraph do not apply to such a public utility if,

27-10  in the most recently completed calendar quarter, not more than 10

27-11  percent of the public utility’s gross operating revenue was derived from

27-12  intrastate services provided to retail customers in this state by the public

27-13  utility.

27-14  (c) An entity that holds a controlling interest in a public utility doing

27-15  business in this state shall not merge with, directly acquire, indirectly

27-16  acquire through a subsidiary or affiliate, or otherwise directly or

27-17  indirectly obtain control of another entity without first submitting to the

27-18  commission an application for authorization of the proposed transaction

27-19  and obtaining authorization from the commission. The provisions of this

27-20  paragraph do not apply to such an entity if, in the most recently

27-21  completed calendar quarter, not more than 10 percent of the entity’s

27-22  gross operating revenue was derived from intrastate services provided to

27-23  retail customers in this state by public utilities in which the entity holds a

27-24  controlling interest.

27-25  2.  Any [merger, acquisition or other] transaction that violates the

27-26  provisions of this section is void and unenforceable and is not valid for any

27-27  purpose.

27-28  3. Before authorizing a proposed [merger, acquisition or other]

27-29  transaction pursuant to this section, the commission shall consider the

27-30  effect of the proposed [merger, acquisition or other] transaction on the

27-31  public interest and the customers in this state. The commission shall not

27-32  authorize the proposed [merger, acquisition or other] transaction unless the

27-33  commission finds that the proposed [merger, acquisition or other]

27-34  transaction:

27-35  (a) Will be in the public interest; and

27-36  (b) Complies with the provisions of sections 8 to 18, inclusive, of [this

27-37  act,] Assembly Bill No. 369 of this session, if the proposed [merger,

27-38  acquisition or other] transaction is subject to those provisions.

27-39  4.  The commission may base its authorization of the proposed [merger,

27-40  acquisition or other] transaction upon such terms, conditions or

27-41  modifications as the commission deems appropriate.

27-42  5.  If the commission does not issue a final order regarding the

27-43  proposed [merger, acquisition or other] transaction within 180 days after

27-44  the date on which an application or amended application for authorization

27-45  of the proposed [merger, acquisition or other] transaction was filed with the

27-46  commission, and the proposed [merger, acquisition or other] transaction is

27-47  not subject to the provisions of sections 8 to 18, inclusive, of [this act,]

27-48  Assembly Bill No. 369 of this session, the proposed [merger, acquisition or

27-49  other] transaction shall be deemed to be authorized by the commission.

28-1    6. The provisions of this section do not apply to the transfer of stock of

28-2  a public utility doing business in this state or to the transfer of the stock of

28-3  an entity [holding]that holds a controlling interest in such a public utility,

28-4  if a transfer of not more than 25 percent of the common stock of such a

28-5  public utility or entity is proposed.

28-6    7.  As used in this section:

28-7    (a) “Affiliate” means an entity that, directly or indirectly through one

28-8  or more intermediaries, controls, is controlled by or is under common

28-9  control with another entity.

28-10  (b) “Entity” means any person other than a natural person, including,

28-11  without limitation, a public utility and an entity that holds a controlling

28-12  interest in a public utility.

28-13  (c) “Person” means:

28-14     (1) A natural person;

28-15     (2) Any form of business or social organization and any other

28-16  nongovernmental legal entity, including, without limitation, a

28-17  corporation, partnership, association, trust or unincorporated

28-18  organization;

28-19     (3) A government or an agency or instrumentality of a government,

28-20  including, without limitation, this state or an agency or instrumentality

28-21  of this state; and

28-22     (4) A political subdivision of this state or of any other government

28-23  or an agency or instrumentality of a political subdivision of this state or

28-24  of any other government.

28-25  (d) “Transaction” means a merger, acquisition or change in control

28-26  described in subsection 1.

28-27  Sec. 61. NRS 704.68964 is hereby amended to read as follows:

28-28  704.68964  1.  An electing carrier may, pursuant to this section and in

28-29  accordance with NRS 704.68976, exercise flexibility in the pricing of:

28-30  (a) Competitive services and discretionary services. The commission

28-31  shall not specify a maximum rate for any competitive services or

28-32  discretionary services of the electing carrier. The electing carrier shall, with

28-33  regard to any competitive or discretionary service that it provides, set the

28-34  price of that service above the price floor of the service.

28-35  (b) A package of services, which may include basic network services,

28-36  competitive services, discretionary services and other essential services.

28-37  2.  Except as otherwise provided in this subsection, an electing carrier

28-38  may, upon 30-days’ notice to the commission in writing, exercise

28-39  flexibility in the pricing of its services pursuant to subsection 1 and is

28-40  exempt, with respect to the pricing of its services, from the provisions of

28-41  NRS 704.100 and 704.110 and the regulations of the commission relating

28-42  thereto. The notice must include a description in reasonable detail of:

28-43  (a) The characteristics of the services that will be subject to flexibility in

28-44  pricing;

28-45  (b) The terms and conditions applicable to the services;

28-46  (c) The nature of any limitations on the duration or geographical

28-47  availability of the services;

28-48  (d) The price or prices of the services or packages of services; and

29-1    (e) A certificate which provides that the electing carrier has prepared a

29-2  cost study of the price floor to support the price or prices for each service

29-3  and that, on and after the date on which the notice is filed with the

29-4  commission, any affected person may, upon request, inspect and copy

29-5  the cost study, subject to reasonable terms and conditions of any

29-6  applicable confidentiality and nondisclosure agreement relating to the

29-7  services.

29-8  The notice requirements of this subsection do not apply to an electing

29-9  carrier with respect to the pricing of competitive services or for packages

29-10  comprised exclusively of competitive services.

29-11  3.  The price for a package of services must not be lower than the lesser

29-12  of:

29-13  (a) The sum of the price floors for each of the services contained in the

29-14  package; or

29-15  (b) The sum of the prices of the basic network services, as set forth in

29-16  the tariffs of the electing carrier, and the price floors for each of the other

29-17  services contained in the package.

29-18  4.  The commission shall not specify a maximum rate for a package of

29-19  services.

29-20  5.  Each of the services included in a package pursuant to paragraph (b)

29-21  of subsection 1 must be made available on an individual basis.

29-22  Sec. 62. NRS 704.68972 is hereby amended to read as follows:

29-23  704.68972  1.  An electing carrier may introduce new services upon

29-24  30-days’ notice to the commission in writing. The notice must include a

29-25  description in reasonable detail of:

29-26  (a) The characteristics of each new service;

29-27  (b) The terms and conditions applicable to each new service;

29-28  (c) The nature of any limitations on the duration or geographical

29-29  availability of each new service;

29-30  (d) The price or prices of each new service; and

29-31  (e) A certificate that provides that the electing carrier has prepared a

29-32  cost study of the price floor to support the price or prices for each new

29-33  service and that, on and after the date on which the notice is filed with the

29-34  commission, any affected person may, upon request, inspect and copy the

29-35  cost study, subject to reasonable terms and conditions of any applicable

29-36  confidentiality and nondisclosure agreement.

29-37  2.  Each new service is subject to the conditions set forth in NRS

29-38  704.68964.

29-39  3.  Each new service is exempt from the provisions of NRS 704.100

29-40  and 704.110 and the regulations of the commission relating thereto.

29-41  4.  Unless otherwise classified by the commission as a competitive

29-42  service pursuant to its regulations, a new service must be classified as a

29-43  discretionary service for which the commission shall not specify a

29-44  maximum rate. The electing carrier shall set the price of the new service

29-45  above the price floor of the service.

29-46  5.  As used in this section, a “new service” means a telecommunication

29-47  service:

29-48  (a) That provides a function, feature or capability which is materially

29-49  different from any service or services previously offered by the carrier; or

30-1    (b) Combines two or more previously provided new services.

30-2    Sec. 63.  NRS 704.767 is hereby amended to read as follows:

30-3    704.767  As used in NRS [704.767] 704.766 to 704.775, inclusive,

30-4  unless the context otherwise requires, the words and terms defined in NRS

30-5  704.768 to 704.772, inclusive, and section 43 of this act have the

30-6  meanings ascribed to them in those sections.

30-7    Sec. 64.  NRS 704.771 is hereby amended to read as follows:

30-8    704.771  “Net metering system” means a facility or energy system for

30-9  the [production of electrical energy] generation of electricity that:

30-10  1.  Uses [wind or solar] renewable energy as its primary source of

30-11  [fuel;] energy to generate electricity;

30-12  2.  Has a generating capacity of not more than [10] 20 kilowatts;

30-13  3.  Is located on the customer-generator’s premises;

30-14  4.  Operates in parallel with the utility’s transmission and distribution

30-15  facilities; and

30-16  5.  Is intended primarily to offset part or all of the customer-generator’s

30-17  requirements for electricity.

30-18  Sec. 65.  NRS 704.773 is hereby amended to read as follows:

30-19  704.773  1.  A utility shall offer net metering, as set forth in NRS

30-20  704.775, to the customer-generators operating within its service area .

30-21  [until 100 of those customer-generators have accepted the offer.]

30-22  2.  A utility:

30-23  (a) Shall offer to make available to each of its customer-generators who

30-24  has accepted its offer for net metering an energy meter that is capable of

30-25  registering the flow of electricity in two directions.

30-26  (b) May, at its own expense and with the written consent of the

30-27  customer-generator, install one or more additional meters to monitor the

30-28  flow of electricity in each direction.

30-29  (c) Shall not charge a customer-generator any fee or charge that would

30-30  increase the customer-generator’s minimum monthly charge to an amount

30-31  greater than that of other customers of the utility in the same rate class as

30-32  the customer-generator.

30-33  (d) Shall ensure that for any period in which a customer-generator is

30-34  generating and feeding electricity back to the utility, the electricity so

30-35  generated and fed back to the utility is valued at the same price per

30-36  kilowatt-hour that the utility would charge the customer-generator for

30-37  electricity during that same period.

30-38  Sec. 66. NRS 704.910 is hereby amended to read as follows:

30-39  704.910  1.  The provisions of NRS 704.910 to 704.960, inclusive,

30-40  apply to mobile home parks governed by the provisions of chapters 118B

30-41  and 461A of NRS, utilities which provide service to those parks and

30-42  landlords who operate those parks.

30-43  2.  A utility which provides gas, water or electricity to any landlord

30-44  exclusively for distribution or resale to tenants residing in mobile homes or

30-45  for the landlord’s residential use shall not [charge] :

30-46  (a) Charge the landlord for those services at a rate higher than the

30-47  current rates offered by the utility to its residential customers.

30-48  (b) Terminate those services without complying with the regulations

30-49  adopted by the commission pursuant to section 44 of this act.

31-1    Sec. 67. NRS 228.360 is hereby amended to read as follows:

31-2    228.360  The consumer’s advocate:

31-3    1.  Shall intervene in and represent the public interest in [all] :

31-4    (a) All proceedings conducted pursuant to sections 8 to 18, inclusive, of

31-5  [this act.] Assembly Bill No. 369 of this session; and

31-6    (b) All proceedings conducted pursuant to NRS 704.070 to 704.110,

31-7  inclusive, and sections 48 to 52, inclusive, of this act in which an electric

31-8  utility has filed a general rate application or an application to clear its

31-9  deferred accounts.

31-10  2.  May, with respect to all public utilities except railroads and

31-11  cooperative utilities, and except as otherwise provided in NRS 228.380:

31-12  (a) Conduct or contract for studies, surveys, research or expert

31-13  testimony relating to matters affecting the public interest or the interests of

31-14  utility customers.

31-15  (b) Examine any books, accounts, minutes, records or other papers or

31-16  property of any public utility subject to the regulatory authority of the

31-17  public utilities commission of Nevada in the same manner and to the same

31-18  extent as authorized by law for members of the public utilities commission

31-19  of Nevada and its staff.

31-20  (c) Except as otherwise provided in subsection 1, petition for, request,

31-21  initiate, appear or intervene in any proceeding concerning rates, charges,

31-22  tariffs, modifications of service or any related matter before the public

31-23  utilities commission of Nevada or any court, regulatory body, board,

31-24  commission or agency having jurisdiction over any matter which the

31-25  consumer’s advocate may bring before or has brought before the public

31-26  utilities commission of Nevada or in which the public interest or the

31-27  interests of any particular class of utility customers are involved. The

31-28  consumer’s advocate may represent the public interest or the interests of

31-29  any particular class of utility customers in any such proceeding, and he is a

31-30  real party in interest in the proceeding.

31-31  3.  As used in this section, “electric utility” has the meaning ascribed

31-32  to it in section 19 of Assembly Bill No. 369 of this session.

31-33  Sec. 68. NRS 228.390 is hereby amended to read as follows:

31-34  228.390  Except as otherwise provided in NRS 704.110 and sections 8

31-35  to 18, inclusive, of [this act:] Assembly Bill No. 369 of this session:

31-36  1.  The consumer’s advocate has sole discretion to represent or refrain

31-37  from representing the public interest and any class of customers in any

31-38  proceeding.

31-39  2.  In exercising his discretion, the consumer’s advocate shall consider

31-40  the importance and extent of the public interest or the customers’ interests

31-41  involved and whether those interests would be adequately represented

31-42  without his participation.

31-43  3.  If the consumer’s advocate determines that there would be a conflict

31-44  between the public interest and any particular class of customers or any

31-45  inconsistent interests among the classes of customers involved in a

31-46  particular matter, he may choose to represent one of the interests, to

31-47  represent no interest, or to represent one interest through his office and

31-48  another or others through outside counsel engaged on a case basis.

32-1    Sec. 69.  Chapter 349 of NRS is hereby amended by adding thereto the

32-2  provisions set forth as sections 70 to 95, inclusive, of this act.

32-3    Sec. 70.  As used in sections 70 to 95, inclusive, of this act, unless the

32-4  context otherwise requires, the words and terms defined in sections 71 to

32-5  82, inclusive, of this act have the meanings ascribed to them in those

32-6  sections.

32-7    Sec. 71.  “Biomass” means any organic matter that is available on a

32-8  renewable basis, including, without limitation:

32-9    1.  Agricultural crops and agricultural wastes and residues;

32-10  2.  Wood and wood wastes and residues;

32-11  3.  Animal wastes;

32-12  4.  Municipal wastes; and

32-13  5.  Aquatic plants.

32-14  Sec. 72.  “Cost of a renewable energy generation project” means all

32-15  or a designated part of the cost of a renewable energy generation project,

32-16  including any incidental cost pertaining to the project. The cost of a

32-17  renewable energy generation project may include, among other costs, the

32-18  costs of:

32-19  1.  Designing and constructing the renewable energy generation

32-20  project;

32-21  2.  Surveys, audits, preliminary plans and other plans, specifications,

32-22  estimates and other costs of preparations;

32-23  3.  Appraising, printing, estimating, advice, services of engineers,

32-24  architects, financial consultants, attorneys, clerical personnel and other

32-25  agents and employees;

32-26  4.  Publishing, posting, mailing and otherwise giving notice, filing or

32-27  recording instruments, taking options and fees to banks;

32-28  5.  Establishment of a reserve for contingencies;

32-29  6.  Interest on bonds for any time which does not exceed the

32-30  estimated period of construction plus 1 year, discounts on bonds, reserves

32-31  for the payment of the principal of and interest on bonds, replacement

32-32  expenses and other costs of issuing bonds;

32-33  7.  Amending any resolution or other instrument authorizing the

32-34  issuance of, or otherwise relating to, bonds for the renewable energy

32-35  generation project; and

32-36  8.  Short-term financing,

32-37  and the expense of operation and maintenance of the renewable energy

32-38  generation project.

32-39  Sec. 73.  “Director” means the director of the department of business

32-40  and industry or any person within the department of business and

32-41  industry designated by the director to perform duties in connection with a

32-42  renewable energy generation project or the issuance of bonds.

32-43  Sec. 74.  “Expense of operation and maintenance” means any

32-44  reasonable and necessary current expense of the state for the operation,

32-45  maintenance or administration of a renewable energy generation project

32-46  or of the collection and administration of revenues from such a project.

32-47  The term includes, among other expenses:

33-1    1.  Expenses for engineering, auditing, reporting, legal services and

33-2  other expenses of the director which are directly related to the

33-3  administration of renewable energy generation projects.

33-4    2.  Premiums for fidelity bonds and policies of property and liability

33-5  insurance pertaining to renewable energy generation projects, and

33-6  shares of the premiums of blanket bonds and policies which may be

33-7  reasonably allocated to the state.

33-8    3.  Payments to pension, retirement, health insurance and other

33-9  insurance funds.

33-10  4.  Reasonable charges made by any paying agent, commercial bank,

33-11  credit union, trust company or other depository bank pertaining to any

33-12  bonds.

33-13  5.  Services rendered pursuant to the terms of contracts, services of

33-14  professionally qualified persons, salaries, administrative expenses and

33-15  the cost of materials, supplies and labor pertaining to the issuance of any

33-16  bonds, including the expenses of any trustee, receiver or other fiduciary.

33-17  6.  Costs incurred in the collection and any refund of revenues from

33-18  the renewable energy generation project, including the amount of the

33-19  refund.

33-20  Sec. 75.  “Mortgage” includes a deed of trust and any other security

33-21  agreement covering real or personal property, or both.

33-22  Sec. 76.  “Obligor” means the natural person, partnership, firm,

33-23  company, public utility, corporation, association, trust, estate, political

33-24  subdivision, state agency or any other legal entity, or its legal

33-25  representative, who agrees to make the payments sufficient to pay the

33-26  principal of, premium, if any, and interest on the state securities or

33-27  revenue bonds issued pursuant to sections 70 to 95, inclusive, of this act.

33-28  Sec. 77.  1.  “Renewable energy” means:

33-29  (a) Biomass;

33-30  (b) Hydrogen;

33-31  (c) Geothermal energy;

33-32  (d) Solar energy;

33-33  (e) Waterpower; and

33-34  (f) Wind.

33-35  2.  The term does not include coal, natural gas, oil, propane or any

33-36  other fossil fuel, or nuclear energy.

33-37  Sec. 78.  1.  “Renewable energy generation project” means a project

33-38  involving an electric generating unit that uses renewable energy as its

33-39  primary source of energy to generate electricity.

33-40  2.  The term does not include a project involving an electric

33-41  generating unit that uses nuclear energy, in whole or in part, to generate

33-42  electricity.

33-43  Sec. 79.  “Revenue bonds” means bonds, notes or other securities

33-44  evidencing a special limited obligation of the state, the principal and

33-45  interest of which are payable solely out of revenues derived from the

33-46  financing, leasing or sale of the renewable energy generation project that

33-47  is to be financed.

33-48  Sec. 80.  “State securities” means notes, warrants, interim

33-49  debentures, bonds and temporary bonds issued as general obligations by

34-1  the director for any renewable energy generation project, or for a

34-2  refunding, which are payable from taxes, whether or not additionally

34-3  secured by a pledge of all or any designated revenues of one or more

34-4  renewable energy generation projects.

34-5    Sec. 81.  “Task force” means the task force for renewable energy

34-6  and energy conservation created by section 105 of this act.

34-7    Sec. 82.  “Tax” means a general tax upon property.

34-8    Sec. 83.  The director has all the powers necessary to accomplish the

34-9  purposes set forth in sections 70 to 95, inclusive, of this act. These

34-10  powers must be exercised for the health, safety, convenience, prosperity

34-11  and welfare of the inhabitants of this state. The director may adopt such

34-12  regulations as the director determines are necessary to carry out the

34-13  provisions of sections 70 to 95, inclusive, of this act.

34-14  Sec. 84.  Sections 70 to 95, inclusive, of this act must be construed

34-15  liberally to effectuate the purposes of those sections.

34-16  Sec. 85.  The director shall not finance a renewable energy

34-17  generation project unless, before financing:

34-18  1.  The renewable energy generation project has been finally

34-19  approved by the task force after a public hearing on the matter.

34-20  2.  The director finds and the state board of finance approves the

34-21  findings of the director that:

34-22  (a) The contemplated lessee, purchaser or other obligor has sufficient

34-23  financial resources to place the renewable energy generation project in

34-24  operation and to continue its operation, meeting the obligations of the

34-25  lease, purchase contract or financing agreement;

34-26  (b) There are sufficient safeguards to assure that all money provided

34-27  by the director will be expended solely for the purposes of the renewable

34-28  energy generation project; and

34-29  (c) The total amount of money necessary to be provided by the director

34-30  for financing the renewable energy generation project has been

34-31  determined in writing by the task force on a form acceptable to the

34-32  director.

34-33  3.  For the issuance of state securities, the director and the state

34-34  board of finance have received and approved the authorizing documents

34-35  showing the legal authority for the obligor to borrow and repay the

34-36  proceeds of the state securities.

34-37  4.  For the issuance of revenue bonds, the director and the state

34-38  board of finance have received and approved:

34-39  (a) The financial plan showing that the revenues to be derived from

34-40  the renewable energy generation project are adequate to pay the

34-41  principal and interest on such bonds;

34-42  (b) A 5-year operating history or evidence of sufficient financial

34-43  resources from the contemplated lessee, purchaser or other obligor or

34-44  from a parent or other guarantor, who guarantees the payments of

34-45  principal and interest on any bonds issued; and

34-46  (c) A written statement from the obligor affirming that the obligor

34-47  does not undertake to commit the state, and any political subdivision or

34-48  municipality thereof, to incur any pecuniary liability in connection with

34-49  the issuance of the bonds.

35-1    Sec. 86.  1.  The bonds must be authorized by an order of the

35-2  director, and must:

35-3    (a) Be in the denominations;

35-4    (b) Bear the date or dates;

35-5    (c) Mature at the time or times, not exceeding 30 years after their

35-6  respective dates;

35-7    (d) Bear interest at a rate or rates specified in the order;

35-8    (e) Be in the form;

35-9    (f) Carry the registration privileges;

35-10  (g) Be executed in the manner;

35-11  (h) Be payable at the place or places within or without the state; and

35-12  (i) Be subject to the terms of redemption,

35-13  which the order authorizing their issue provides.

35-14  2.  The bonds may be sold in one or more series at par, or below or

35-15  above par, in the manner and for the price or prices which the director

35-16  determines in his discretion.

35-17  3.  State securities must be authorized by resolution of the board of

35-18  finance at the request of the director.

35-19  4.  As an incidental expense to any renewable energy generation

35-20  project to be financed by the bonds, the director may employ:

35-21  (a) Financial and legal consultants in regard to the financing of the

35-22  renewable energy generation project; and

35-23  (b) A person whose business is in Nevada or elsewhere to act as a

35-24  trustee for the renewable energy generation project.

35-25  5.  The bonds are fully negotiable under the terms of the Uniform

35-26  Commercial Code—Investment Securities.

35-27  Sec. 87.  1.  The director may, to pay the cost of any renewable

35-28  energy generation project, borrow money or otherwise become obligated,

35-29  and may provide evidence of those obligations by issuing, except as

35-30  otherwise provided in this subsection, state securities or revenue bonds.

35-31  If the obligor is not a governmental entity, the director shall issue only

35-32  revenue bonds to fulfill the obligation.

35-33  2.  State obligations may be outstanding pursuant to this section in an

35-34  aggregate principal amount of not more than $300,000,000.

35-35  3.  State securities must be payable from taxes and may be

35-36  additionally secured by all or any designated revenues from one or more

35-37  renewable energy generation projects. Any governmental entity

35-38  statutorily authorized to levy taxes for the payment of bonded

35-39  indebtedness may use the proceeds of those taxes to pay the principal,

35-40  interest and redemption premiums due in connection with state securities

35-41  issued pursuant to this section. Any such state securities may be issued

35-42  without an election or other preliminaries. No state securities may be

35-43  issued to refund any municipal securities issued to finance a renewable

35-44  energy generation project before July 1, 2001.

35-45  4.  The provisions of NRS 349.150 to 349.364, inclusive, which are

35-46  not inconsistent with the provisions of sections 70 to 95, inclusive, of this

35-47  act, apply to the issuance of state securities pursuant to this section. The

35-48  provisions of NRS 349.400 to 349.670, inclusive, which are not

36-1  inconsistent with the provisions of sections 70 to 95, inclusive, of this act,

36-2  apply to the issuance of revenue bonds pursuant to this section.

36-3    5.  The legislature finds and declares that the issuance of state

36-4  securities pursuant to sections 70 to 95, inclusive, of this act:

36-5    (a) Is necessary for the protection and preservation of the natural

36-6  resources of this state and for the purpose of obtaining the benefits

36-7  thereof; and

36-8    (b) Constitutes an exercise of the authority conferred by the second

36-9  paragraph of section 3 of article 9 of the constitution of the State of

36-10  Nevada.

36-11  Sec. 88.  1.  The director may charge the obligor a fee not to exceed

36-12  2 percent of the principal amount of the financing, including a

36-13  nonrefundable application fee not to exceed 0.25 percent of the principal

36-14  amount or $7,500, whichever is less, payable either in advance or at the

36-15  time the bonds are issued. The director shall deposit all money received

36-16  pursuant to this section, except money received from application fees,

36-17  with the state treasurer for credit to the account for the financing of

36-18  renewable energy generation projects.

36-19  2.  Money received from application fees collected pursuant to this

36-20  section must be:

36-21  (a) Accounted for separately in the state general fund.

36-22  (b) Used by the director to support the operations of his office in

36-23  administering the provisions of sections 70 to 95, inclusive, of this act.

36-24  3.  Whether or not bonds are issued, the director shall use money

36-25  received pursuant to this section, except money received from application

36-26  fees, to reimburse his office for the expenses and costs incurred in

36-27  financing the renewable energy generation project and, within the limits

36-28  of money available for this purpose, to reimburse a municipality

36-29  pursuant to the provisions of section 95 of this act. Any portion of the

36-30  money so received, except money received from application fees, which

36-31  exceeds the director’s expenses and costs must be refunded to the

36-32  obligor.

36-33  Sec. 89.  1.  Except as otherwise provided in subsection 3 and

36-34  section 88 of this act, all amounts received by the director from an

36-35  obligor in connection with any financing undertaken pursuant to

36-36  sections 70 to 95, inclusive, of this act, must be deposited with the state

36-37  treasurer for credit to the account for the financing of renewable energy

36-38  generation projects which is hereby created in the fund for the municipal

36-39  bond bank.

36-40  2.  Any revenue from renewable energy generation projects financed

36-41  with state securities which is in the account must be applied in the

36-42  following order of priority:

36-43  (a) Deposited into the consolidated bond interest and redemption fund

36-44  in amounts necessary to pay the principal, interest and redemption

36-45  premiums due in connection with state securities issued for renewable

36-46  energy generation projects.

36-47  (b) Deposited into any reserve account created for the payment of the

36-48  principal, interest and redemption premiums due in connection with state

37-1  securities issued for renewable energy generation projects, in amounts

37-2  and at times determined to be necessary.

37-3    (c) Paid out for expenses of operation and maintenance.

37-4    3.  Any revenue from renewable energy generation projects financed

37-5  with revenue bonds may:

37-6    (a) Be deposited in the account for the financing of renewable energy

37-7  generation projects and subject to the provisions of subsection 2; or

37-8    (b) Subject to any agreement with the holders of the bonds, be

37-9  invested, deposited or held by the director in such funds or accounts as

37-10  he deems necessary or desirable. If the director is acting pursuant to this

37-11  subsection, he need not deposit the money in the state treasury and the

37-12  provisions of chapters 355 and 356 of NRS do not apply to any

37-13  investments or deposits made pursuant to this subsection.

37-14  Sec. 90.  1.  Any bonds issued pursuant to the provisions of sections

37-15  70 to 95, inclusive, of this act, may be refunded by the director by the

37-16  issuance of refunding bonds in an amount which he deems necessary to

37-17  refund the principal of the bonds to be so refunded, any unpaid interest

37-18  thereon and any premiums and incidental expenses necessary to be paid

37-19  in connection with refunding.

37-20  2.  Refunding may be carried out whether or not the bonds to be

37-21  refunded have matured or thereafter mature, either by sale of the

37-22  refunding bonds and the application of the proceeds to the payment of

37-23  the bonds to be refunded, or by exchange of the refunding bonds for the

37-24  bonds to be refunded. The holders of the bonds to be refunded must not

37-25  be compelled, without their consent, to surrender their bonds for

37-26  payment or exchange before the date on which they are payable by

37-27  maturity, option to redeem or otherwise, or if they are called for

37-28  redemption before the date on which they are by their terms subject to

37-29  redemption by option or otherwise.

37-30  3.  All refunding bonds issued pursuant to this section must be

37-31  payable solely from revenues and other money out of which the bonds to

37-32  be refunded thereby are payable or from revenues out of which bonds of

37-33  the same character may be made payable under this or any other law

37-34  then in effect at the time of the refunding.

37-35  Sec. 91.  No action may be brought questioning the legality of any

37-36  contract, lease, agreement, indenture, mortgage, order or bonds

37-37  executed, adopted or taken in connection with any renewable energy

37-38  generation project or improvements authorized pursuant to sections 70 to

37-39  95, inclusive, of this act, after 30 days after the effective date of the order

37-40  of the director authorizing the issuance of those bonds.

37-41  Sec. 92.  The faith of the state is hereby pledged that sections 70 to

37-42  95, inclusive, of this act, will not be repealed, amended or modified to

37-43  impair any outstanding bonds or any revenues pledged to their payment,

37-44  or to impair, limit or alter the rights or powers vested in a city or county

37-45  to acquire, finance, improve and equip a renewable energy generation

37-46  project in any way that would jeopardize the interest of any lessee,

37-47  purchaser or other obligor, or to limit or alter the rights or powers vested

37-48  in the director to perform any agreement made with any lessee,

38-1  purchaser or other obligor, until all bonds have been discharged in full

38-2  or provisions for their payment and redemption have been fully made.

38-3    Sec. 93.  A renewable energy generation project is not subject to any

38-4  requirements relating to public buildings, structures, ground works or

38-5  improvements imposed by the statutes of this state or any other similar

38-6  requirements which may be lawfully waived by this section, and any

38-7  requirement of competitive bidding or other restriction imposed on the

38-8  procedure for award of contracts for such purpose or the lease, sale or

38-9  other disposition of property is not applicable to any action taken

38-10  pursuant to sections 70 to 95, inclusive, of this act, except that the

38-11  provisions of NRS 338.010 to 338.090, inclusive, apply to any contract

38-12  for new construction, repair or reconstruction work to be done on a

38-13  renewable energy generation project.

38-14  Sec. 94.  1.  The state engineer shall advise the task force, upon its

38-15  request, of the existence and status of any water rights which affect a

38-16  renewable energy generation project under consideration by the task

38-17  force.

38-18  2.  Upon the request of the task force and within the limits of

38-19  available resources and staff, the director and the consumer’s advocate

38-20  of the bureau of consumer protection in the office of the attorney general

38-21  may on a case by case basis assist persons in the preparation of a

38-22  preliminary plan for a renewable energy generation project.

38-23  Sec. 95. 1.  When any municipality or other obligor desires to

38-24  undertake a renewable energy generation project it may present its

38-25  preliminary plan to the task force for approval. The task force shall

38-26  analyze the potential output of the renewable energy generation project,

38-27  and may tentatively approve it if it will increase the quantity of electricity

38-28  available for use in this state.

38-29  2.  If the task force, after a public hearing on the issue, tentatively

38-30  approves the renewable energy generation project, the municipality or

38-31  other obligor may proceed to prepare a final plan and submit it for final

38-32  approval. If the task force finally approves the renewable energy

38-33  generation project, the cost of the final plan may be included in the cost

38-34  of the renewable energy generation project. If the task force does not

38-35  finally approve the renewable energy generation project, the director

38-36  may, within the limits of money available for this purpose in the account

38-37  for the financing of renewable energy generation projects, reimburse a

38-38  municipality for the costs incurred after the tentative approval.

38-39  Sec. 96.  NRS 349.987 is hereby amended to read as follows:

38-40  349.987  1.  The provisions of NRS 349.150 to 349.364, inclusive,

38-41  which are not inconsistent with the provisions of NRS 349.980 to 349.987,

38-42  inclusive, apply to the bonds issued pursuant to NRS 349.986.

38-43  2.  The provisions of NRS 349.935 to 349.956, inclusive, and 349.961

38-44  and sections 70 to 95, inclusive, of this act, do not apply to the program or

38-45  to any grants made or bonds issued pursuant to NRS 349.986.

38-46  Sec. 97.  NRS 354.59811 is hereby amended to read as follows:

38-47  354.59811  1.  Except as otherwise provided in NRS 354.59813,

38-48  354.59815, 354.5982, 354.5987, 354.59871, 354.705, 354.723, 450.425,

38-49  450.760, 540A.265 and 543.600, for each fiscal year beginning on or after

39-1  July 1, 1989, the maximum amount of money that a local government,

39-2  except a school district, a district to provide a telephone number for

39-3  emergencies, or a redevelopment agency, may receive from taxes ad

39-4  valorem, other than those attributable to the net proceeds of minerals or

39-5  those levied for the payment of bonded indebtedness and interest thereon

39-6  incurred as general long-term debt of the issuer, or for the payment of

39-7  obligations issued to pay the cost of a water project pursuant to NRS

39-8  349.950, or for the payment of obligations issued to pay the cost of a

39-9  renewable energy generation project pursuant to section 87 of this act, or

39-10  for the payment of obligations under a capital lease executed before April

39-11  30, 1981, must be calculated as follows:

39-12  (a) The rate must be set so that when applied to the current fiscal year’s

39-13  assessed valuation of all property which was on the preceding fiscal year’s

39-14  assessment roll, together with the assessed valuation of property on the

39-15  central assessment roll which was allocated to the local government, but

39-16  excluding any assessed valuation attributable to the net proceeds of

39-17  minerals, assessed valuation attributable to a redevelopment area and

39-18  assessed valuation of a fire protection district attributable to real property

39-19  which is transferred from private ownership to public ownership for the

39-20  purpose of conservation, it will produce 106 percent of the maximum

39-21  revenue allowable from taxes ad valorem for the preceding fiscal year,

39-22  except that the rate so determined must not be less than the rate allowed for

39-23  the previous fiscal year, except for any decrease attributable to the

39-24  imposition of a tax pursuant to NRS 354.59813 in the previous year.

39-25  (b) This rate must then be applied to the total assessed valuation,

39-26  excluding the assessed valuation attributable to the net proceeds of

39-27  minerals and the assessed valuation of a fire protection district attributable

39-28  to real property which is transferred from private ownership to public

39-29  ownership for the purpose of conservation but including new real property,

39-30  possessory interests and mobile homes, for the current fiscal year to

39-31  determine the allowed revenue from taxes ad valorem for the local

39-32  government.

39-33  2.  As used in this section, “general long-term debt” does not include

39-34  debt created for medium-term obligations pursuant to NRS 350.085 to

39-35  350.095, inclusive.

39-36  Sec. 98.  Chapter 523 of NRS is hereby amended by adding thereto the

39-37  provisions set forth as sections 99 to 107, inclusive, of this act.

39-38  Sec. 99.  “Biomass” means any organic matter that is available on a

39-39  renewable basis, including, without limitation:

39-40  1.  Agricultural crops and agricultural wastes and residues;

39-41  2.  Wood and wood wastes and residues;

39-42  3.  Animal wastes;

39-43  4.  Municipal wastes; and

39-44  5.  Aquatic plants.

39-45  Sec. 100.  “Bureau” means the bureau of consumer protection

39-46  created within the office of the attorney general pursuant to NRS

39-47  228.310.

39-48  Sec. 101.  “Consumer’s advocate” means the executive head of the

39-49  bureau or his designee.

40-1    Sec. 102. 1.  “Renewable energy” means:

40-2    (a) Biomass;

40-3    (b) Hydrogen;

40-4    (c) Geothermal energy;

40-5    (d) Solar energy;

40-6    (e) Waterpower; and

40-7    (f) Wind.

40-8    2.  The term does not include coal, natural gas, oil, propane or any

40-9  other fossil fuel, or nuclear energy.

40-10  Sec. 103.  “Task force” means the task force for renewable energy

40-11  and energy conservation created by section 105 of this act.

40-12  Sec. 104. 1.  The trust fund for renewable energy and energy

40-13  conservation is hereby created in the state treasury. The state treasurer

40-14  shall deposit in the fund all money received by him for credit to the fund

40-15  pursuant to section 47 of this act.

40-16  2.  The task force shall administer the fund. As administrator of the

40-17  fund, the task force:

40-18  (a) Shall maintain the financial records of the fund;

40-19  (b) Shall invest the money in the fund as the money in other state

40-20  funds is invested;

40-21  (c) Shall manage any account associated with the fund;

40-22  (d) Shall maintain any instruments that evidence investments made

40-23  with the money in the fund;

40-24  (e) May contract with vendors for any good or service that is

40-25  necessary to carry out the provisions of this section; and

40-26  (f) May perform any other duties that are necessary to administer the

40-27  fund.

40-28  3.  The interest and income earned on the money in the fund must,

40-29  after deducting any applicable charges, be credited to the fund. All

40-30  claims against the fund must be paid as other claims against the state are

40-31  paid.

40-32  4.  Not more than 2 percent of the money in the fund may be used to

40-33  pay the costs of administering the fund.

40-34  5.  The money in the fund remains in the fund and does not revert to

40-35  the state general fund at the end of any fiscal year.

40-36  6.  All money that is deposited or paid into the fund may only be

40-37  expended pursuant to an allocation made by the task force. Money

40-38  expended from the fund must not be used to supplant existing methods of

40-39  funding that are available to public agencies.

40-40  Sec. 105. 1.  The task force for renewable energy and energy

40-41  conservation is hereby created. The task force consists of nine members

40-42  who are appointed as follows:

40-43  (a) Two members appointed by the majority leader of the senate, one

40-44  of whom represents the interests of private industry with respect to

40-45  renewable energy and the other of whom represents the interests of a

40-46  nonprofit organization dedicated to the protection of the environment or

40-47  to the conservation of energy or the efficient use of energy.

40-48  (b) Two members appointed by the speaker of the assembly, one of

40-49  whom represents the interests of private industry with respect to

41-1  renewable energy and the other of whom represents the interests of a

41-2  nonprofit organization dedicated to the protection of the environment or

41-3  to the conservation of energy or the efficient use of energy.

41-4    (c) Two members appointed by the minority leader of the senate, one

41-5  of whom represents the interests of state government and the other of

41-6  whom represents the interests of the building, mining or gaming industry

41-7  in this state.

41-8    (d) Two members appointed by the minority leader of the assembly,

41-9  one of whom represents the interests of local government and the other

41-10  of whom represents the interests of the public utilities in this state.

41-11  (e) One member appointed by the consumer’s advocate to represent

41-12  the interests of the consumers in this state.

41-13  2.  A member of the task force:

41-14  (a) Must be a citizen of the United States and a resident of this state.

41-15  (b) Must have training, education, experience or knowledge

41-16  concerning:

41-17     (1) The development or use of renewable energy;

41-18     (2) Financing, planning or constructing renewable energy

41-19  generation projects;

41-20     (3) Measures which conserve or reduce the demand for energy or

41-21  which result in more efficient use of energy;

41-22     (4) Weatherization;

41-23     (5) Building and energy codes and standards;

41-24     (6) Grants or incentives concerning energy;

41-25     (7) Public education or community relations; or

41-26     (8) Any other matter within the duties of the task force.

41-27  (c) Must not be an officer or employee of the legislative or judicial

41-28  department of state government.

41-29  3.  After the initial terms, the term of each member of the task force is

41-30  3 years. A vacancy on the task force must be filled for the remainder of

41-31  the unexpired term in the same manner as the original appointment. A

41-32  member may be reappointed to the task force.

41-33  4.  A member of the task force who is an officer or employee of this

41-34  state or a political subdivision of this state must be relieved from his

41-35  duties without loss of his regular compensation so that he may prepare

41-36  for and attend meetings of the task force and perform any work that is

41-37  necessary to carry out the duties of the task force in the most timely

41-38  manner practicable. A state agency or political subdivision of this state

41-39  shall not require an officer or employee who is a member of the task

41-40  force to:

41-41  (a) Make up the time he is absent from work to carry out his duties as

41-42  a member of the task force; or

41-43  (b) Take annual leave or compensatory time for the absence.

41-44  Sec. 106. 1.  The members of the task force shall select a chairman

41-45  and vice chairman from among their membership. The vice chairman

41-46  shall perform the duties of the chairman during any absence of the

41-47  chairman.

41-48  2.  The chairman and vice chairman serve in those positions for

41-49  terms of 1 year. If a vacancy occurs in the chairmanship or vice

42-1  chairmanship, the vacancy must be filled for the remainder of the

42-2  unexpired term in the same manner as the original selection.

42-3    3.  A majority of the members of the task force constitutes a quorum.

42-4  A majority of the members present during a quorum may exercise all the

42-5  power and authority conferred on the task force.

42-6    4.  The task force shall meet at least four times annually or more

42-7  frequently at the discretion of the chairman.

42-8    5.  Except as otherwise provided in this subsection, the members of

42-9  the task force serve without compensation and are not entitled to the per

42-10  diem and travel expenses provided for state officers and employees

42-11  generally. For each day of attendance at a meeting of the task force and

42-12  while engaged in the business of the task force, a member of the task

42-13  force who:

42-14  (a) Is an officer or employee of this state or a political subdivision of

42-15  this state is entitled to receive the per diem and travel expenses provided

42-16  for state officers and employees generally, paid by his governmental

42-17  employer.

42-18  (b) Represents the interests of a nonprofit organization is entitled to

42-19  receive the per diem and travel expenses provided for state officers and

42-20  employees generally, paid from the trust fund for renewable energy and

42-21  energy conservation.

42-22  6.  The consumer’s advocate shall provide the task force with

42-23  administrative and clerical support and with such other assistance as

42-24  may be necessary for the task force to carry out its duties. Such support

42-25  and assistance must include, without limitation, making arrangements

42-26  for facilities, equipment and other services in preparation for and during

42-27  meetings.

42-28  Sec. 107. 1.  The task force shall establish comprehensive plans for

42-29  the promotion and use in this state of renewable energy and for the

42-30  promotion and use in this state of measures which conserve or reduce the

42-31  demand for energy or which result in more efficient use of energy.

42-32  2.  The comprehensive plans established by the task force must

42-33  include provisions for:

42-34  (a) The education of persons and entities concerning renewable

42-35  energy and measures which conserve or reduce the demand for energy or

42-36  which result in more efficient use of energy.

42-37  (b) The creation of incentives for investment in and the use of

42-38  renewable energy and measures which conserve or reduce the demand

42-39  for energy or which result in more efficient use of energy.

42-40  (c) Grants and other money to establish programs and projects which

42-41  incorporate the use of renewable energy and measures which conserve or

42-42  reduce the demand for energy or which result in more efficient use of

42-43  energy.

42-44  (d) Oversight and accountability with respect to the promotion and use

42-45  of renewable energy and measures which conserve or reduce the demand

42-46  for energy or which result in more efficient use of energy.

42-47  (e) The development or incorporation by reference of model and

42-48  uniform building and energy codes and standards which are written in

43-1  language which is easy to understand and which include performance

43-2  standards for conservation of energy and efficient use of energy.

43-3    (f) Any other matter that the task force determines to be relevant to

43-4  the promotion and use of renewable energy and measures which

43-5  conserve or reduce the demand for energy or which result in more

43-6  efficient use of energy.

43-7    3.  In addition to establishing the comprehensive plans, the task force

43-8  shall:

43-9    (a) Solicit grants and other money from the Federal Government and

43-10  other sources to promote the use of renewable energy and measures

43-11  which conserve or reduce the demand for energy or which result in more

43-12  efficient use of energy.

43-13  (b) Identify and provide incentives to developers and builders to

43-14  incorporate, in homes and other buildings, the use of renewable energy

43-15  and measures which conserve or reduce the demand for energy or which

43-16  result in more efficient use of energy, including, without limitation:

43-17     (1) Systems for the heating of water by solar power;

43-18     (2) Active or passive solar daylighting systems that reduce the

43-19  consumption of energy; and

43-20     (3) Net metering systems.

43-21  (c) Promote programs to conserve energy or to make energy use more

43-22  efficient through various devices, including, without limitation, devices

43-23  that turn off air-conditioning systems for a limited time during periods of

43-24  peak electrical demand.

43-25  (d) Evaluate the benefits of distributed generation and consider

43-26  paying for the cost of a pilot project involving a distributed generation

43-27  unit which uses renewable energy as its primary source of energy to

43-28  generate electricity and which generates more than 20 kilowatts of

43-29  electricity per hour.

43-30  (e) Carry out the duties assigned to the task force pursuant to sections

43-31  70 to 95, inclusive, of this act.

43-32  (f) Take any other actions that the task force deems necessary to carry

43-33  out its duties, including, without limitation, contracting with consultants,

43-34  if necessary, for the purposes of program design or to assist the task

43-35  force in carrying out its duties.

43-36  4.  As used in this section:

43-37  (a) “Distributed generation” means the generation of electricity in

43-38  close proximity to the place of use, including, without limitation, the use

43-39  of generators and small turbines.

43-40  (b) “Net metering system” has the meaning ascribed to it in NRS

43-41  704.771.

43-42  Sec. 108.  NRS 523.011 is hereby amended to read as follows:

43-43  523.011  1.  The legislature finds that:

43-44  (a) Energy is essential to the economy of the state and to the health,

43-45  safety and welfare of the people of the state.

43-46  (b) The state has a responsibility to encourage the maintenance of a

43-47  reliable and economical supply of energy at a level which is consistent with

43-48  the protection of environmental quality.

44-1    (c) The state has a responsibility to encourage the utilization of a wide

44-2  range of measures which reduce wasteful uses of energy resources.

44-3    (d) Planning for energy conservation and future energy requirements

44-4  should include consideration of state, regional and local plans for land use,

44-5  urban expansion, transportation systems, environmental protection and

44-6  economic development.

44-7    (e) Government and private enterprise need to accelerate research and

44-8  development of [alternative] sources of renewable energy and to improve

44-9  technology related to the research and development of existing sources of

44-10  energy.

44-11  (f) While government and private enterprise are seeking to accelerate

44-12  research and development of [alternative] sources of renewable energy,

44-13  they must also prepare for and respond to the advent of competition within

44-14  the electrical energy industry and are, therefore, encouraged to maximize

44-15  the use of indigenous energy resources to the extent competitively and

44-16  economically feasible.

44-17  (g) Prevention of delays and interruptions in providing energy,

44-18  protecting environmental values and conserving energy require expanded

44-19  authority and capability within state government.

44-20  2.  It is the policy of this state to encourage participation with all levels

44-21  of government and private enterprise in cooperative state, regional and

44-22  national programs to assure adequate supplies of energy resources and

44-23  markets for such energy resources.

44-24  3.  It is the policy of this state to assign the responsibility for managing

44-25  and conserving energy and its sources to agencies whose other programs

44-26  are similar, to avoid duplication of effort in developing policies and

44-27  programs for energy.

44-28  Sec. 109.  NRS 523.021 is hereby amended to read as follows:

44-29  523.021  As used in this chapter, unless the context otherwise requires

44-30  [:

44-31  1.  “Department” means the department of business and industry.

44-32  2.  “Director” means the director of the department.] , the words and

44-33  terms defined in sections 99 to 103, inclusive, of this act have the

44-34  meanings ascribed to them in those sections.

44-35  Sec. 110.  NRS 523.051 is hereby amended to read as follows:

44-36  523.051  The [director] consumer’s advocate may:

44-37  1.  Administer any gifts or grants which the [department] bureau is

44-38  authorized to accept for the purposes of this chapter.

44-39  2.  Expend money received from those gifts or grants or from

44-40  legislative appropriations to contract with qualified persons or institutions

44-41  for research in the production and efficient use of energy resources.

44-42  3.  Enter into any cooperative agreement with any federal or state

44-43  agency or political subdivision.

44-44  4.  Participate in any program established by the Federal Government

44-45  relating to sources of energy and adopt regulations appropriate to that

44-46  program.

44-47  Sec. 111.  NRS 523.131 is hereby amended to read as follows:

44-48  523.131  The [director] consumer’s advocate shall:

45-1    1.  Acquire and analyze information relating to energy and to the

45-2  supply, demand and conservation of its sources.

45-3    2.  Utilize all available public and private means to provide information

45-4  to the public about problems relating to energy and to explain how

45-5  conservation of energy and its sources may be accomplished.

45-6    3.  Review and evaluate information which identifies trends and

45-7  permits forecasting of the energy available to the state. Such forecasts must

45-8  include estimates on:

45-9    (a) The level of demand for energy in the state for 5-, 10- and 20-year

45-10  periods;

45-11  (b) The amount of energy available to meet each level of demand;

45-12  (c) The probable implications of the forecast on the demand and supply

45-13  of energy; [and]

45-14  (d) The [alternative] sources of renewable energy which are available

45-15  and their possible effects [.] ; and

45-16  (e) The reduction in the demand for energy which is possible from

45-17  available and practicable measures that conserve or reduce the demand

45-18  for energy or which result in more efficient use of energy.

45-19  4.  Study means of reducing wasteful, inefficient, unnecessary or

45-20  uneconomical uses of energy and encourage the maximum utilization of

45-21  existing sources of energy in the state.

45-22  5.  Encourage the development of [any existing and alternative] :

45-23  (a) Any existing sources of energy and any sources of renewable

45-24  energy which will benefit the state [.] ; and

45-25  (b) Any measures which conserve or reduce the demand for energy or

45-26  which result in more efficient use of energy.

45-27  6.  In conjunction with the desert research institute, review policies

45-28  relating to the research and development of the state’s geothermal

45-29  resources and make recommendations to the appropriate state and federal

45-30  agencies for establishing methods of developing the geothermal resources

45-31  within the state.

45-32  7.  To the extent practicable, carry out his powers and duties

45-33  pursuant to this chapter in consultation with the task force to avoid

45-34  duplication of effort in developing policies and programs for renewable

45-35  energy and energy conservation.

45-36  Sec. 112.  NRS 523.141 is hereby amended to read as follows:

45-37  523.141  1.  The [director] consumer’s advocate shall prepare a state

45-38  energy conservation plan which provides methods for conserving and

45-39  improving efficiency in the use of energy resources and establishes

45-40  procedures for reducing the rate of growth of energy demand and

45-41  minimizing the adverse social, economic, political and environmental

45-42  effects of increasing energy resource consumption.

45-43  2.  The plan must be [presented] :

45-44  (a) Consistent with the comprehensive plans established by the task

45-45  force pursuant to section 107 of this act.

45-46  (b) Presented to the governor, and upon approval by the governor, may

45-47  be submitted by him in compliance with any program established by the

45-48  Federal Government.

 

46-1    Sec. 113.  NRS 523.151 is hereby amended to read as follows:

46-2    523.151  The [director] consumer’s advocate shall:

46-3    1.  Prepare, subject to the approval of the governor, petroleum

46-4  allocation and rationing plans for possible energy contingencies. The plans

46-5  [shall] must be carried out only by executive order of the governor.

46-6    2.  Carry out and administer any federal programs which authorize state

46-7  participation in fuel allocation programs.

46-8    Sec. 114.  NRS 523.161 is hereby amended to read as follows:

46-9    523.161  1.  Except for those energy resources for [whose] which

46-10  priorities of use are established by the public utilities commission of

46-11  Nevada, the [director] consumer’s advocate may recommend to state

46-12  agencies, local governments and appropriate private persons and entities,

46-13  standards for conservation of energy and its sources and for carrying out

46-14  the state plan for the conservation of energy.

46-15  2.  In recommending such standards , the [director] consumer’s

46-16  advocate shall consider the usage of energy and its sources in the state and

46-17  the methods available for conservation of those sources.

46-18  Sec. 115.  NRS 523.164 is hereby amended to read as follows:

46-19  523.164  1.  The [director] consumer’s advocate shall adopt

46-20  regulations for the conservation of energy in buildings, including

46-21  manufactured homes, which establish the minimum standards for:

46-22  (a) The construction of floors, walls, ceilings and roofs;

46-23  (b) The equipment and systems for heating, ventilation and air-

46-24  conditioning;

46-25  (c) Electrical equipment and systems;

46-26  (d) Insulation; and

46-27  (e) Other factors which affect the use of energy in a building.

46-28  2.  The [director] consumer’s advocate may exempt a building from a

46-29  standard if he determines that application of the standard to the building

46-30  would not accomplish the purpose of the regulations.

46-31  3.  The regulations must authorize allowances in design and

46-32  construction for [solar, wind or any other renewable source] :

46-33  (a) Sources of renewable energy used to supply all or a part of the

46-34  energy required in a building [.] ; and

46-35  (b) Measures which conserve or reduce the demand for energy or

46-36  which result in more efficient use of energy.

46-37  4.  The standards adopted by the [director] consumer’s advocate are

46-38  the minimum standards for the conservation of energy which apply only to

46-39  areas in which the governing body of the local government has not adopted

46-40  standards for the conservation of energy in buildings. Such governing

46-41  bodies shall assist the [director] consumer’s advocate in the enforcement

46-42  of the regulations adopted pursuant to this section.

46-43  5.  The [director] consumer’s advocate shall solicit comments

46-44  regarding the adoption of regulations pursuant to this section from:

46-45  (a) Persons in the business of constructing and selling homes;

46-46  (b) Contractors;

46-47  (c) Public utilities;

46-48  (d) Local building inspectors; and

46-49  (e) The general public,

47-1  before adopting any regulations. The [director] consumer’s advocate must

47-2  conduct at least three hearings in different locations in the state, after

47-3  giving 30 days’ notice of each hearing, before he may adopt any

47-4  regulations pursuant to this section.

47-5    Sec. 116.  NRS 523.167 is hereby amended to read as follows:

47-6    523.167  1.  In a county whose population is 100,000 or more, a

47-7  building whose construction began on or after October 1, 1983, must not

47-8  contain a system using electric resistance for heating spaces unless:

47-9    (a) The system is merely supplementary to another means of heating;

47-10  (b) Under the particular circumstances no other primary means of

47-11  heating the spaces is a feasible or economical alternative to heating by

47-12  electric resistance; or

47-13  (c) The [department] bureau determines that the present or future

47-14  availability of other sources of energy is so limited as to justify the use of

47-15  such a system.

47-16  2.  This section does not prohibit the use of incandescent or fluorescent

47-17  lighting.

47-18  Sec. 117.  NRS 523.171 is hereby amended to read as follows:

47-19  523.171  The [director,] consumer’s advocate, in cooperation with the

47-20  chief of the buildings and grounds division of the department of

47-21  administration, shall, upon request, provide information and assistance to

47-22  any agency, bureau, board, commission, department or division which is

47-23  engaged in the management, planning, utilization and distribution of

47-24  energy.

47-25  Sec. 118.  NRS 523.181 is hereby amended to read as follows:

47-26  523.181  The [director] consumer’s advocate shall prepare a report

47-27  concerning the status of energy in the State of Nevada and submit it to:

47-28  1.  The governor on or before January 30 of each year; and

47-29  2.  The legislature on or before January 30 of each odd-numbered year.

47-30  Sec. 119. Assembly Bill No. 369 of this session is hereby amended by

47-31  adding thereto a new section designated sec. 15.5, following sec. 15, to

47-32  read as follows:

47-33  Sec. 15.5.  The provisions of sections 8 to 18, inclusive, of this

47-34  act do not prohibit an electric utility from pledging, mortgaging,

47-35  granting a security interest in or otherwise encumbering any of its

47-36  generation assets or other property for the purpose of securing

47-37  indebtedness of the electric utility which exists on the effective date

47-38  of this act or which is issued or incurred by the electric utility after

47-39  the effective date of this act in financing transactions approved by

47-40  the commission.

47-41  Sec. 120. Section 33 of Assembly Bill No. 369 of this session is

47-42  hereby amended to read as follows:

47-43  Sec. 33.  The public utilities commission of Nevada shall:

47-44  1.  Amend, modify, supplement, annul or vacate any order or

47-45  directive issued by the commission before the effective date of this act

47-46  that authorizes or requires an electric utility to dispose of any

47-47  generation asset, if such disposal would violate the provisions of this

47-48  act;

48-1    2.  Take all appropriate action to request that the Federal Energy

48-2  Regulatory Commission and any other officer, agency or department

48-3  of the Federal Government:

48-4    (a) Not issue any order or directive that authorizes or requires an

48-5  electric utility to dispose of any generation asset, if such an order or

48-6  directive could be interpreted as being in conflict with or preempting

48-7  the provisions of this act; and

48-8    (b) Amend, modify, supplement, annul or vacate any order or

48-9  directive issued before, on or after the effective date of this act that

48-10  authorizes or requires an electric utility to dispose of any generation

48-11  asset, if such an order or directive could be interpreted as being in

48-12  conflict with or preempting the provisions of this act;

48-13  3.  If any action taken pursuant to subsection 2 is unsuccessful,

48-14  take all appropriate legal action to challenge any order or directive

48-15  issued by the Federal Energy Regulatory Commission or any other

48-16  officer, agency or department of the Federal Government that

48-17  authorizes or requires an electric utility to dispose of any generation

48-18  asset, if such an order or directive could be interpreted as being in

48-19  conflict with or preempting the provisions of this act; [and]

48-20  4.  On or before October 1, 2001, adopt such revisions to its

48-21  regulations concerning deferred accounting and deferred accounts

48-22  as are required to carry out the provisions of this act; and

48-23  5.  Take any other action or issue any other orders necessary to

48-24  carry out the provisions of this act.

48-25  Sec. 121. Section 35 of Assembly Bill No. 369 of this session is

48-26  hereby amended to read as follows:

48-27  Sec. 35. Except as otherwise provided in section 36 of this act

48-28  and notwithstanding the provisions of any other specific statute to the

48-29  contrary:

48-30  1.  An electric utility shall not file an application for a fuel and

48-31  purchased power rider on or after the effective date of this act.

48-32  2.  Each application for a fuel and purchased power rider filed by

48-33  an electric utility which is pending with the commission on the

48-34  effective date of this act and which the electric utility did not place

48-35  into effect before or on April 1, 2001, is void and unenforceable and is

48-36  not valid for any purpose after April 1, 2001.

48-37  3.  If, before March 1, 2001, an electric utility incurred any costs

48-38  for fuel or purchased power, including, without limitation, any costs

48-39  for fuel or purchased power recorded or carried on the books and

48-40  records of the electric utility, and those costs were not recovered or

48-41  could not be recovered pursuant to a fuel and purchased power rider

48-42  placed into effect by the electric utility before March 1, 2001, the

48-43  electric utility is not entitled, on or after March 1, 2001, to recover

48-44  any of those costs for fuel or purchased power from customers, and

48-45  the commission shall not allow the electric utility to recover any of

48-46  those costs for fuel or purchased power from customers.

48-47  4.  Except as otherwise provided in this section, on and after the

48-48  effective date of this act:

49-1    (a) The commission shall not take any further action on the

49-2  comprehensive energy plan, and each electric utility that jointly filed

49-3  the comprehensive energy plan shall be deemed to have withdrawn

49-4  the comprehensive energy plan;

49-5    (b) The rates that each electric utility placed into effect on

49-6  March 1, 2001, pursuant to the comprehensive energy plan shall be

49-7  deemed to be a component of the electric utility’s rates for fuel and

49-8  purchased power; and

49-9    (c) The revenues [collected] for services provided by each electric

49-10  utility [before April] for the period of March 1, 2001, to March 31,

49-11  2001, inclusive, from the rates that each electric utility placed into

49-12  effect on March 1, 2001, pursuant to the comprehensive energy plan

49-13  shall be deemed to be a credit in the electric utility’s deferred

49-14  accounts.

49-15  5.  On or before October 1, 2001, each electric utility that

49-16  primarily serves densely populated counties shall file a general rate

49-17  application pursuant to subsection 3 of NRS 704.110, as amended by

49-18  this act [.] and Assembly Bill No. 661 of this session. On or before

49-19  December 1, 2001, each electric utility that primarily serves densely

49-20  populated counties shall file an application to clear its deferred

49-21  accounts pursuant to subsection 7 of NRS 704.110, as amended by

49-22  this act [.] and Assembly Bill No. 661 of this session. After such an

49-23  electric utility files the application to clear its deferred accounts, the

49-24  commission shall investigate and determine whether the rates that the

49-25  electric utility placed into effect on March 1, 2001, pursuant to the

49-26  comprehensive energy plan are just and reasonable and reflect prudent

49-27  business practices. On the date on which the commission issues a final

49-28  order on the general rate application, the commission shall issue a

49-29  final order on the electric utility’s application to clear its deferred

49-30  accounts. The total rates to provide electric service that were in effect

49-31  on April 1, 2001, for the electric utility must remain in effect until the

49-32  date on which the commission issues a final order on the general rate

49-33  application. The commission shall not adjust the rates of the electric

49-34  utility during this period unless such an adjustment is absolutely

49-35  necessary to avoid rates that are confiscatory under the Constitution of

49-36  the United States or the constitution of this state. The commission:

49-37  (a) May make such an adjustment only to the extent that it is

49-38  absolutely necessary to avoid an unconstitutional result; and

49-39  (b) Shall not, in any proceedings concerning such an adjustment,

49-40  approve any rate or grant any relief that is not absolutely necessary to

49-41  avoid an unconstitutional result.

49-42  After the electric utility files the general rate application that is

49-43  required by this subsection, the electric utility shall file general rate

49-44  applications in accordance with subsection 3 of NRS 704.110, as

49-45  amended by this act [.] and Assembly Bill No. 661 of this session.

49-46  After the electric utility files the application to clear its deferred

49-47  accounts that is required by this subsection, the electric utility shall

49-48  file applications to clear its deferred accounts in accordance with

50-1  section 19 of this act and subsection 7 of NRS 704.110, as amended

50-2  by this act [.] and Assembly Bill No. 661 of this session.

50-3    6.  On or before December 1, 2001, each electric utility that

50-4  primarily serves less densely populated counties shall file a general

50-5  rate application pursuant to subsection 3 of NRS 704.110, as amended

50-6  by this act [.] and Assembly Bill No. 661 of this session. On or before

50-7  February 1, 2002, each electric utility that primarily serves less

50-8  densely populated counties shall file an application to clear its

50-9  deferred accounts pursuant to subsection 7 of NRS 704.110, as

50-10  amended by this act [.] and Assembly Bill No. 661 of this session.

50-11  After such an electric utility files the application to clear its deferred

50-12  accounts, the commission shall investigate and determine whether the

50-13  rates that the electric utility placed into effect on March 1, 2001,

50-14  pursuant to the comprehensive energy plan are just and reasonable

50-15  and reflect prudent business practices. On the date on which the

50-16  commission issues a final order on the general rate application, the

50-17  commission shall issue a final order on the electric utility’s

50-18  application to clear its deferred accounts. The total rates to provide

50-19  electric service that were in effect on April 1, 2001, for the electric

50-20  utility must remain in effect until the date on which the commission

50-21  issues a final order on the general rate application. The commission

50-22  shall not adjust the rates of the electric utility during this period unless

50-23  such an adjustment is absolutely necessary to avoid rates that are

50-24  confiscatory under the Constitution of the United States or the

50-25  constitution of this state. The commission:

50-26  (a) May make such an adjustment only to the extent that it is

50-27  absolutely necessary to avoid an unconstitutional result; and

50-28  (b) Shall not, in any proceedings concerning such an adjustment,

50-29  approve any rate or grant any relief that is not absolutely necessary to

50-30  avoid an unconstitutional result.

50-31  After the electric utility files the general rate application that is

50-32  required by this subsection, the electric utility shall file general rate

50-33  applications in accordance with subsection 3 of NRS 704.110, as

50-34  amended by this act [.] and Assembly Bill No. 661 of this session.

50-35  After the electric utility files the application to clear its deferred

50-36  accounts that is required by this subsection, the electric utility shall

50-37  file applications to clear its deferred accounts in accordance with

50-38  section 19 of this act and subsection 7 of NRS 704.110, as amended

50-39  by this act [.] and Assembly Bill No. 661 of this session.

50-40  Sec. 122. Section 36 of Assembly Bill No. 369 of this session is

50-41  hereby amended to read as follows:

50-42  Sec. 36.  Notwithstanding the provisions of any other specific

50-43  statute to the contrary:

50-44  1.  If, on or after January 1, 1999, and before the effective date of

50-45  this act, an electric utility holding company entered into any

50-46  transaction to acquire a controlling interest in a public utility that

50-47  provides electric service primarily to customers located outside of this

50-48  state, the electric utility holding company shall not carry out the

50-49  transaction unless, on or after the effective date of this act:

51-1    (a) The electric utility holding company files with the commission

51-2  an application for authorization of the transaction; and

51-3    (b) The commission issues a written order that authorizes the

51-4  transaction. The commission shall not authorize the transaction unless

51-5  the commission finds that the transaction will be in the public interest.

51-6  The commission may base its authorization of the transaction upon

51-7  such terms, conditions or modifications as the commission deems

51-8  appropriate.

51-9    2.  If the commission authorizes a transaction described in

51-10  subsection 1 and, before July 1, 2003, the electric utility holding

51-11  company acquires a controlling interest in such a public utility, or any

51-12  affiliate thereof, pursuant to the transaction:

51-13  (a) Each electric utility in which the electric utility holding

51-14  company holds a controlling interest shall not use deferred accounting

51-15  pursuant to section 19 of this act on or after the date on which the

51-16  electric utility holding company acquires a controlling interest in the

51-17  public utility, or any affiliate thereof;

51-18  (b) Not later than 90 days after that date, each such electric utility

51-19  shall file one final application to clear the remaining balance in its

51-20  deferred accounts pursuant to subsection 7 of NRS 704.110, as

51-21  amended by this act [;] and Assembly Bill No. 661 of this session;

51-22  (c) For each such electric utility, the commission shall not carry

51-23  out the provisions of section 35 of this act concerning deferred

51-24  accounting and deferred accounts; and

51-25  (d) The commission shall carry out the remaining provisions of

51-26  section 35 of this act, including, without limitation, the commission’s

51-27  investigation and determination whether the rates that each electric

51-28  utility placed into effect on March 1, 2001, pursuant to the

51-29  comprehensive energy plan are just and reasonable and reflect prudent

51-30  business practices.

51-31  3.  Any transaction that violates the provisions of this section is

51-32  void and unenforceable and is not valid for any purpose.

51-33  Sec. 123. Section 7 of Senate Bill No. 203 of this session is hereby

51-34  amended to read as follows:

51-35  Sec. 7. NRS 354.59811 is hereby amended to read as follows:

51-36  354.59811  1.  Except as otherwise provided in NRS 354.59813,

51-37  354.59815, 354.5982, 354.5987, 354.59871, 354.705, 354.723,

51-38  450.425, 450.760, 540A.265 and 543.600, and section 4 of this act,

51-39  for each fiscal year beginning on or after July 1, 1989, the maximum

51-40  amount of money that a local government, except a school district, a

51-41  district to provide a telephone number for emergencies, or a

51-42  redevelopment agency, may receive from taxes ad valorem, other than

51-43  those attributable to the net proceeds of minerals or those levied for

51-44  the payment of bonded indebtedness and interest thereon incurred as

51-45  general long-term debt of the issuer, or for the payment of obligations

51-46  issued to pay the cost of a water project pursuant to NRS 349.950, or

51-47  for the payment of obligations issued to pay the cost of a renewable

51-48  energy generation project pursuant to section 87 of [this act,]

51-49  Assembly Bill No. 661 of this session, or for the payment of

52-1  obligations under a capital lease executed before April 30, 1981, must

52-2  be calculated as follows:

52-3    (a) The rate must be set so that when applied to the current fiscal

52-4  year’s assessed valuation of all property which was on the preceding

52-5  fiscal year’s assessment roll, together with the assessed valuation of

52-6  property on the central assessment roll which was allocated to the

52-7  local government, but excluding any assessed valuation attributable to

52-8  the net proceeds of minerals, assessed valuation attributable to a

52-9  redevelopment area and assessed valuation of a fire protection district

52-10  attributable to real property which is transferred from private

52-11  ownership to public ownership for the purpose of conservation, it will

52-12  produce 106 percent of the maximum revenue allowable from taxes

52-13  ad valorem for the preceding fiscal year, except that the rate so

52-14  determined must not be less than the rate allowed for the previous

52-15  fiscal year, except for any decrease attributable to the imposition of a

52-16  tax pursuant to NRS 354.59813 in the previous year.

52-17  (b) This rate must then be applied to the total assessed valuation,

52-18  excluding the assessed valuation attributable to the net proceeds of

52-19  minerals and the assessed valuation of a fire protection district

52-20  attributable to real property which is transferred from private

52-21  ownership to public ownership for the purpose of conservation but

52-22  including new real property, possessory interests and mobile homes,

52-23  for the current fiscal year to determine the allowed revenue from taxes

52-24  ad valorem for the local government.

52-25  2.  As used in this section, “general long-term debt” does not

52-26  include debt created for medium-term obligations pursuant to NRS

52-27  350.085 to 350.095, inclusive.

52-28  Sec. 124. 1.  NRS 704.080, 704.090 and 704.275 are hereby

52-29  repealed.

52-30  2.  Section 10 of Assembly Bill No. 369 of this session is hereby

52-31  repealed.

52-32  Sec. 125. 1.  For the purposes of sections 3 to 26, inclusive, of this

52-33  act:

52-34  (a) An electric utility that provides distribution services to an eligible

52-35  customer who is purchasing energy, capacity or ancillary services from a

52-36  provider of new electric resources shall charge the eligible customer based

52-37  upon the rates for the electric utility’s distribution services that were on file

52-38  with the commission on April 1, 2001, until the commission approves a

52-39  change in those rates and such a change becomes effective.

52-40  (b) Not later than March 1, 2002, the commission shall establish the

52-41  initial rates for all other components of electric service which are within

52-42  the jurisdiction of the commission and which are necessary for a provider

52-43  of new electric resources to sell energy, capacity and ancillary services to

52-44  an eligible customer pursuant to the provisions of sections 3 to 26,

52-45  inclusive, of this act. The commission may establish such initial rates as a

52-46  part of a general rate application that is pending or filed with the

52-47  commission on or after the effective date of this act.

52-48  2.  The commission shall:

53-1    (a) Not later than November 1, 2001, adopt regulations to carry out and

53-2  enforce the provisions of sections 3 to 26, inclusive, of this act.

53-3    (b) Not later than March 1, 2002, approve tariffs to carry out and

53-4  enforce the provisions of section 22 of this act.

53-5    3.  Notwithstanding the provisions of section 25 of this act, the

53-6  commission is not required to submit a report to the legislative commission

53-7  for any calendar quarter that ends before October 1, 2001.

53-8    4.  As used this section, the words and terms defined in sections 4 to

53-9  16, inclusive, of this act have the meanings ascribed to them in those

53-10  sections.

53-11  Sec. 126.  1.  As soon as practicable after the effective date of this

53-12  act, the governor shall appoint two additional commissioners to the public

53-13  utilities commission of Nevada as required by the provisions of this act.

53-14  For the initial terms of those commissioners, the governor shall appoint:

53-15  (a) One commissioner whose term begins on October 1, 2001, and

53-16  expires on September 30, 2003; and

53-17  (b) One commissioner whose term begins on October 1, 2001, and

53-18  expires on September 30, 2004.

53-19  2.  The provisions of this act do not abrogate or affect the term of office

53-20  of any other commissioner of the public utilities commission of Nevada.

53-21  Sec. 127.  1.  Notwithstanding the provisions of this act and except as

53-22  otherwise provided in subsection 2, the department of business and

53-23  industry and its director shall exercise all the power and perform all the

53-24  duties that are assigned to the consumer’s advocate of the bureau of

53-25  consumer protection in the office of the attorney general pursuant to the

53-26  provisions of chapter 523 of NRS, as amended by this act, until the date on

53-27  which the attorney general certifies to the governor that the consumer’s

53-28  advocate is prepared to carry out those provisions, or until January 1, 2002,

53-29  whichever occurs earlier.

53-30  2.  During the period described in subsection 1, the consumer’s

53-31  advocate may exercise any power and perform any duty assigned to him

53-32  pursuant to the provisions of chapter 523 of NRS, as amended by this act,

53-33  if the exercise of the power or the performance of the duty is necessary as

53-34  an organizational, preparatory or preliminary measure to prepare the

53-35  consumer’s advocate to carry out those provisions.

53-36  Sec. 128.  1.  Any administrative regulations adopted by an officer or

53-37  an agency whose name has been changed or whose responsibilities have

53-38  been transferred pursuant to the provisions of this act to another officer or

53-39  agency remain in force until amended by the officer or agency to which the

53-40  responsibility for the adoption of the regulations has been transferred.

53-41  2.  Any contracts or other agreements entered into by an officer or

53-42  agency whose name has been changed or whose responsibilities have been

53-43  transferred pursuant to the provisions of this act to another officer or

53-44  agency are binding upon the officer or agency to which the responsibility

53-45  for the administration of the provisions of the contract or other agreement

53-46  has been transferred. Such contracts and other agreements may be enforced

53-47  by the officer or agency to which the responsibility for the enforcement of

53-48  the provisions of the contract or other agreement has been transferred.

54-1    3.  Any action taken by an officer or agency whose name has been

54-2  changed or whose responsibilities have been transferred pursuant to the

54-3  provisions of this act to another officer or agency remains in effect as if

54-4  taken by the officer or agency to which the responsibility for the

54-5  enforcement of such actions has been transferred.

54-6    Sec. 129.  1.  As soon as practicable after the effective date of this

54-7  act, the appointing authorities set forth in section 105 of this act shall

54-8  appoint members to the task force for renewable energy and energy

54-9  conservation that is created by that section.

54-10  2.  The initial appointed members of the task force shall, at the first

54-11  meeting of the task force after their appointment, draw lots to determine

54-12  which:

54-13  (a) Five members of the board will serve initial terms that expire on

54-14  June 30, 2004.

54-15  (b) Four members of the board will serve initial terms that expire on

54-16  June 30, 2003.

54-17  Sec. 130. 1.  This section and sections 1 to 27, inclusive, 29, 31 to

54-18  129, inclusive, and 131 of this act become effective upon passage and

54-19  approval.

54-20  2.  Sections 28 and 30 of this act become effective on October 1, 2001.

54-21  Sec. 131.  1.  The legislative counsel shall:

54-22  (a) In preparing the reprint and supplements to the Nevada Revised

54-23  Statutes, appropriately change any references to an officer or agency whose

54-24  name is changed or whose responsibilities have been transferred pursuant

54-25  to the provisions of this act to refer to the appropriate officer or agency.

54-26  (b) In preparing supplements to the Nevada Administrative Code,

54-27  appropriately change any references to an officer or agency whose name is

54-28  changed or whose responsibilities have been transferred pursuant to the

54-29  provisions of this act to refer to the appropriate officer or agency.

54-30  2.  Any reference in a bill or resolution passed by the 71st session of

54-31  the Nevada legislature to an officer or agency whose name is changed or

54-32  whose responsibilities have been transferred pursuant to the provisions of

54-33  this act to another officer or agency shall be deemed to refer to the officer

54-34  or agency to which the responsibility is transferred.

 

54-35  TEXT OF REPEALED SECTIONS

 

54-36  704.080  Printing and posting of schedules. A copy, or so much of

54-37   the schedule as the commission shall deem necessary for the use of the

54-38   public, shall be printed in plain type and posted in every station or office

54-39   of such public utility where payments are made by the consumers or users,

54-40   open to the public, in such form and place as to be readily accessible to the

54-41   public and conveniently inspected.

54-42  704.090  Schedule of joint rates: Filing; printing; posting. When a

54-43   schedule of joint rates or charges is or may be in force between two or

54-44   more public utilities, such schedule shall, in like manner, be printed and

54-45   filed with the commission, and so much thereof as the commission may

55-1  deem necessary for the use of the public shall be posted conspicuously in

55-2  every station or office as provided in NRS 704.080.

55-3    704.275  Powers of commission: Standards for requiring hearing

55-4   on telephone rates. The commission shall determine whether a hearing

55-5   must be held when the proposed change by a public utility furnishing

55-6   telephone service in any schedule stating a new or revised individual or

55-7   joint rate or charge, or any new or revised individual or joint regulation or

55-8   practice affecting any rate or charge, will result in an increase in annual

55-9   gross revenue as certified by the applicant of $50,000 or 10 percent of the

55-10   applicant’s gross revenue, whichever is less.

55-11  Section 10 of Assembly Bill No. 369 of this session:

55-12  Sec. 10. “Consumer’s advocate” means the consumer’s

55-13   advocate of the bureau of consumer protection in the office of the

55-14   attorney general.

 

55-15  H