(REPRINTED WITH ADOPTED AMENDMENTS)
SECOND REPRINT A.B. 661
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.
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EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to 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 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
1-8 their customers in this state, and such purchases are often made pursuant to
1-9 agreements with terms of 1 year or less;
1-10 3. The energy markets in the western United States currently are
1-11 characterized by critical shortages in the supply of electricity and
1-12 extremely high prices for electricity, both of which are damaging to the
1-13 strength of the economy of this state and to the well-being of the residents
1-14 of this state;
1-15 4. The residents of this state would benefit from construction of new
1-16 generation assets in this state and from access to other new electric
1-17 resources, wherever located, that provide lower-priced electricity;
1-18 5. The economic development that would result from construction in
1-19 this state of new generation assets, supporting gas pipelines and additional
1-20 infrastructure would be of special benefit to the rural areas of this state
1-21 where the new generation assets are most likely to be located;
2-1 6. During this session, the legislature has considered a number of
2-2 different but complementary approaches to developing and using new
2-3 generation assets and other new electric resources and to increasing the
2-4 supply of reasonably priced electricity in this state;
2-5 7. The development and use of new generation assets and other new
2-6 electric resources by eligible customers would permit the electric utilities
2-7 in this state to reduce their dependence on purchases of excessively priced
2-8 electricity from dysfunctional, short-term energy markets and would
2-9 thereby reduce the average system costs for such electric utilities;
2-10 8. The development and use of new generation assets and other new
2-11 electric resources can be encouraged by allowing eligible customers to use
2-12 their own resources, initiative, expertise and credit to develop, access and
2-13 enter into agreements for the purchase of electricity from new generation
2-14 assets and other new electric resources; and
2-15 9. To protect the electric utilities in this state and their remaining
2-16 customers, all transactions proposed by eligible customers pursuant to
2-17 sections 3 to 26, inclusive, of this act must be carefully reviewed by the
2-18 public utilities commission of Nevada to ensure that the electric utilities in
2-19 this state and their remaining customers are not subject to increased costs
2-20 as a result of the proposed transactions and that the proposed transactions
2-21 are not otherwise contrary to the public interest.
2-22 Sec. 2. Title 58 of NRS is hereby amended by adding thereto a new
2-23 chapter to consist of the provisions set forth as sections 3 to 26, inclusive,
2-24 of this act.
2-25 Sec. 3. As used in this chapter, unless the context otherwise
2-26 requires, the words and terms defined in sections 4 to 16, inclusive, of
2-27 this act have the meanings ascribed to them in those sections.
2-28 Sec. 4. “Ancillary services” means those generation services that:
2-29 1. Are necessary to support the transmission of energy and capacity
2-30 from resources to loads while maintaining reliable operation of the
2-31 transmission system of the electric utility; and
2-32 2. Are defined and established in applicable transmission tariffs on
2-33 file with the Federal Energy Regulatory Commission.
2-34 Sec. 5. “Calendar quarter” means each period of 3 consecutive
2-35 calendar months ending on March 31, June 30, September 30 and
2-36 December 31 in each calendar year.
2-37 Sec. 6. “Commission” means the public utilities commission of
2-38 Nevada.
2-39 Sec. 7. 1. “Electric utility” means any public utility or successor in
2-40 interest that:
2-41 (a) Is in the business of providing electric service to customers;
2-42 (b) Holds a certificate of public convenience and necessity issued or
2-43 transferred pursuant to chapter 704 of NRS; and
2-44 (c) In the most recently completed calendar year or in any other
2-45 calendar year within the 7 calendar years immediately preceding the
2-46 most recently completed calendar year, had a gross operating revenue of
2-47 $250,000,000 or more in this state.
2-48 2. The term does not include a cooperative association, nonprofit
2-49 corporation, nonprofit association or provider of electric service which is
3-1 declared to be a public utility pursuant to NRS 704.673 and which
3-2 provides service only to its members.
3-3 Sec. 8. “Electric utility that primarily serves densely populated
3-4 counties” means an electric utility that, with regard to the provision of
3-5 electric service, derives more of its annual gross operating revenue in
3-6 this state from customers located in counties whose population is 400,000
3-7 or more than it does from customers located in counties whose
3-8 population is less than 400,000.
3-9 Sec. 9. “Electric utility that primarily serves less densely populated
3-10 counties” means an electric utility that, with regard to the provision of
3-11 electric service, derives more of its annual gross operating revenue in
3-12 this state from customers located in counties whose population is less
3-13 than 400,000 than it does from customers located in counties whose
3-14 population is 400,000 or more.
3-15 Sec. 10. “Eligible customer” means an end-use customer which is:
3-16 1. A nongovernmental commercial or industrial end-use customer
3-17 that has an average annual load of 1 megawatt or more in the service
3-18 territory of an electric utility.
3-19 2. A governmental entity, including, without limitation, a
3-20 governmental entity providing educational or health care services, that:
3-21 (a) Performs its functions using one or more facilities which are
3-22 operated under a common budget and common control; and
3-23 (b) Has an average annual load of 1 megawatt or more in the service
3-24 territory of an electric utility.
3-25 Sec. 11. “Energy” means electrical energy.
3-26 Sec. 12. “Generation asset” means any plant, facility, equipment or
3-27 system which is located within or outside this state and which converts
3-28 nonelectrical energy into electrical energy or otherwise produces
3-29 electrical energy.
3-30 Sec. 13. “New electric resource” means:
3-31 1. The energy, capacity or ancillary services and any increased or
3-32 additional energy, capacity or ancillary services which are:
3-33 (a) Made available from a generation asset that is not owned by an
3-34 electric utility or is not subject to contractual commitments to an electric
3-35 utility that make the energy, capacity or ancillary services from the
3-36 generation asset unavailable for purchase by an eligible customer; and
3-37 (b) Able to be delivered to an eligible customer.
3-38 2. Any increased energy, capacity or ancillary services made
3-39 available from a generation asset pursuant to an agreement described in
3-40 section 18 of this act.
3-41 Sec. 14. “Person” means:
3-42 1. A natural person.
3-43 2. Any form of business or social organization and any other
3-44 nongovernmental legal entity, including, without limitation, a
3-45 corporation, partnership, association, trust or unincorporated
3-46 organization.
3-47 3. A governmental entity other than:
3-48 (a) This state or an agency or instrumentality of this state; or
4-1 (b) A political subdivision of this state or an agency or instrumentality
4-2 of a political subdivision of this state.
4-3 Sec. 15. “Provider of new electric resources” and “provider” mean a
4-4 person who makes energy, capacity or ancillary services from a new
4-5 electric resource available to an eligible customer.
4-6 Sec. 16. “Time-of-use meter” means a meter that:
4-7 1. Measures and records the electric demand, energy and power
4-8 factor on 15-minute intervals; and
4-9 2. Is suitable for use with an electric demand of 1 megawatt or more.
4-10 Sec. 17. 1. The provisions of this chapter do not alter, diminish or
4-11 otherwise affect any rights or obligations arising under any contract
4-12 which requires an electric utility to purchase energy, capacity or
4-13 ancillary services from another party and which exists on the effective
4-14 date of this act.
4-15 2. Each electric utility or its assignee shall comply with the terms of
4-16 any contract which requires the electric utility or its assignee to purchase
4-17 energy, capacity or ancillary services from another party and which
4-18 exists on the effective date of this act.
4-19 Sec. 18. 1. Except as otherwise provided in this section, an electric
4-20 utility may, at its discretion, enter into agreements relating to its
4-21 generation assets and the energy, capacity or ancillary services provided
4-22 by its generation assets with one or more other persons who are not
4-23 electric utilities. Such agreements, without limitation:
4-24 (a) May include agreements to construct or install a new generation
4-25 asset on real property that is adjacent to an existing generation asset
4-26 owned by the electric utility; and
4-27 (b) May provide for the sharing of available common facilities with
4-28 the existing generation asset or the reengineering, repowering or
4-29 expansion of the existing generation asset to generate energy more
4-30 efficiently and at a lower cost and to make more energy available to
4-31 customers in this state.
4-32 2. Any increased energy, capacity or ancillary services made
4-33 available from a new generation asset or an existing generation asset
4-34 pursuant to an agreement described in subsection 1 shall be deemed to be
4-35 a new electric resource that may be:
4-36 (a) Owned by the parties to the agreement who are not electric
4-37 utilities; and
4-38 (b) Used or consumed by such parties for their own purposes, sold at
4-39 wholesale by such parties or sold by such parties to one or more eligible
4-40 customers pursuant to the provisions of this chapter.
4-41 3. A transaction undertaken pursuant to an agreement described in
4-42 subsection 1:
4-43 (a) Must not impair system reliability or the ability of the electric
4-44 utility to provide electric service to its customers; and
4-45 (b) Must not violate the provisions of sections 8 to 18, inclusive, of
4-46 Assembly Bill No. 369 of this session.
5-1 4. The provisions of this section do not exempt any party to an
5-2 agreement described in subsection 1 from any applicable statutory or
5-3 regulatory requirements relating to siting, construction and operation of
5-4 a generation asset.
5-5 5. The commission shall encourage the development of new electric
5-6 resources and shall not exercise its regulatory authority in a manner that
5-7 unnecessarily or unreasonably restricts, conditions or discourages any
5-8 agreement described in subsection 1 that is likely to result in increased
5-9 energy, capacity or ancillary services from a generation asset or
5-10 improved or more efficient operation or management of a generation
5-11 asset.
5-12 Sec. 19. 1. Except as otherwise provided in this section, a provider
5-13 of new electric resources may sell energy, capacity or ancillary services to
5-14 one or more eligible customers if the eligible customers have been
5-15 approved to purchase energy, capacity and ancillary services from the
5-16 provider pursuant to the provisions of sections 20 and 21 of this act.
5-17 2. A provider of new electric resources shall not sell energy, capacity
5-18 or ancillary services to an eligible customer:
5-19 (a) Before April 1, 2002, if the eligible customer’s load is in the
5-20 service territory of an electric utility that primarily serves less densely
5-21 populated counties;
5-22 (b) Before June 1, 2002, if the eligible customer’s load is in the
5-23 service territory of an electric utility that primarily serves densely
5-24 populated counties; or
5-25 (c) If the transaction violates the provisions of this chapter.
5-26 3. A provider of new electric resources that sells energy, capacity or
5-27 ancillary services to an eligible customer pursuant to the provisions of
5-28 this chapter:
5-29 (a) Does not become and shall not be deemed to be a public utility
5-30 solely because of that transaction; and
5-31 (b) Does not become and shall not be deemed to be subject to the
5-32 jurisdiction of the commission except as otherwise provided in this
5-33 chapter or by specific statute.
5-34 4. If a provider of new electric resources is not a public utility in this
5-35 state and is not otherwise authorized by the provisions of a specific
5-36 statute to sell energy, capacity or ancillary services at retail in this state,
5-37 the provider shall not sell energy, capacity or ancillary services at retail
5-38 in this state to a person or entity that is not an eligible customer.
5-39 Sec. 20. 1. An eligible customer that is purchasing electric service
5-40 from an electric utility shall not purchase energy, capacity or ancillary
5-41 services from a provider of new electric resources and an eligible
5-42 customer that is purchasing energy, capacity or ancillary services from a
5-43 provider of new electric resources shall not purchase energy, capacity or
5-44 ancillary services from another provider unless:
5-45 (a) The eligible customer files an application with the commission not
5-46 later than 180 days before the date on which the eligible customer
5-47 intends to begin purchasing energy, capacity or ancillary services from
5-48 the provider; and
6-1 (b) The commission approves the application by a written order issued
6-2 in accordance with the provisions of this section and section 21 of this
6-3 act.
6-4 The date on which the eligible customer intends to begin purchasing
6-5 energy, capacity or ancillary services from the provider must not be
6-6 sooner than the date on which the provider is authorized by section 19 of
6-7 this act to begin selling energy, capacity or ancillary services to the
6-8 eligible customer.
6-9 2. Except as otherwise provided in subsection 3, each application
6-10 filed pursuant to this section must include:
6-11 (a) Information demonstrating that the person filing the application is
6-12 an eligible customer;
6-13 (b) Information demonstrating that the proposed provider will provide
6-14 energy, capacity or ancillary services from a new electric resource;
6-15 (c) Information concerning the terms and conditions of the proposed
6-16 transaction that is necessary for the commission to evaluate the impact of
6-17 the proposed transaction on customers and the public interest, including,
6-18 without limitation, information concerning the duration of the proposed
6-19 transaction and the amount of energy, capacity or ancillary services to be
6-20 purchased from the provider; and
6-21 (d) Any other information required pursuant to the regulations
6-22 adopted by the commission.
6-23 3. Except as otherwise provided in section 21 of this act, the
6-24 commission shall not require the eligible customer or provider to
6-25 disclose:
6-26 (a) The price that is being paid by the eligible customer to purchase
6-27 energy, capacity or ancillary services from the provider; or
6-28 (b) Any other terms or conditions of the proposed transaction that the
6-29 commission determines are commercially sensitive.
6-30 4. The commission shall provide public notice of the application of
6-31 the eligible customer and an opportunity for a hearing on the application
6-32 in a manner that is consistent with the provisions of NRS 703.320 and
6-33 the regulations adopted by the commission.
6-34 5. The commission shall approve the application of the eligible
6-35 customer unless the commission finds that the proposed transaction:
6-36 (a) Will be contrary to the public interest; or
6-37 (b) Does not comply with the provisions of section 21 of this act, if
6-38 those provisions apply to the proposed transaction.
6-39 6. In determining whether the proposed transaction will be contrary
6-40 to the public interest, the commission shall consider, without limitation:
6-41 (a) Whether the electric utility that has been providing electric service
6-42 to the eligible customer will be burdened by increased costs as a result of
6-43 the proposed transaction or whether any remaining customer of the
6-44 electric utility will pay increased costs for electric service as a result of
6-45 the proposed transaction;
6-46 (b) Whether the proposed transaction will impair system reliability or
6-47 the ability of the electric utility to provide electric service to its remaining
6-48 customers; and
7-1 (c) Whether the proposed transaction will add energy, capacity or
7-2 ancillary services to the supply in this state.
7-3 7. If the commission approves the application of the eligible
7-4 customer:
7-5 (a) The eligible customer shall not begin purchasing energy, capacity
7-6 or ancillary services from the provider pursuant to the proposed
7-7 transaction sooner than 180 days after the date on which the application
7-8 was filed; and
7-9 (b) The commission shall order such terms, conditions and payments
7-10 as the commission deems necessary and appropriate to ensure that the
7-11 proposed transaction will not be contrary to the public interest. Such
7-12 terms, conditions and payments:
7-13 (1) Must be fair and nondiscriminatory as between the eligible
7-14 customer and the remaining customers of the electric utility; and
7-15 (2) Must include, without limitation, payment by the eligible
7-16 customer to the electric utility of the eligible customer’s load-share
7-17 portion of any unrecovered balance in the deferred accounts of the
7-18 electric utility.
7-19 8. If the commission does not enter a final order on the application
7-20 of the eligible customer within 90 days after the date on which the
7-21 application was filed with the commission:
7-22 (a) The application shall be deemed to be approved by the
7-23 commission; and
7-24 (b) The eligible customer shall not begin purchasing energy, capacity
7-25 or ancillary services from the provider pursuant to the proposed
7-26 transaction sooner than 180 days after the date on which the application
7-27 was filed.
7-28 Sec. 21. 1. For eligible customers whose loads are in the service
7-29 territory of an electric utility that primarily serves densely populated
7-30 counties:
7-31 (a) The amount of energy that each such eligible customer purchases
7-32 from providers of new electric resources before July 1, 2003, must not
7-33 exceed 80 percent of the load of the eligible customer; and
7-34 (b) The aggregate amount of energy that all such eligible customers
7-35 purchase from providers of new electric resources before July 1, 2003,
7-36 must not exceed 50 percent of the difference between the existing supply
7-37 of energy generated in this state that is available to the electric utility and
7-38 the existing demand for energy in this state that is consumed by the
7-39 customers of the electric utility, as determined by the commission.
7-40 2. An eligible customer that is a nongovernmental commercial or
7-41 industrial end-use customer whose load is in the service territory of an
7-42 electric utility that primarily serves densely populated counties shall not
7-43 purchase energy, capacity or ancillary services from a provider of new
7-44 electric resources unless, as part of the proposed transaction, the eligible
7-45 customer agrees to:
7-46 (a) Contract with the provider to purchase:
7-47 (1) An additional amount of energy which is equal to 10 percent of
7-48 the total amount of energy that the eligible customer is purchasing for its
7-49 own use under the proposed transaction and which is purchased at the
8-1 same price, terms and conditions as the energy purchased by the eligible
8-2 customer for its own use; and
8-3 (2) The capacity and ancillary services associated with the
8-4 additional amount of energy at the same price, terms and conditions as
8-5 the capacity and ancillary services purchased by the eligible customer for
8-6 its own use; and
8-7 (b) Offers to assign the rights to the contract to the electric utility for
8-8 use by the remaining customers of the electric utility.
8-9 3. If an eligible customer is subject to the provisions of subsection 2,
8-10 the eligible customer shall include with its application filed pursuant to
8-11 section 20 of this act all information concerning the contract offered to
8-12 the electric utility that is necessary for the commission to determine
8-13 whether it is in the best interest of the remaining customers of the electric
8-14 utility for the electric utility to accept the rights to the contract. Such
8-15 information must include, without limitation, the amount of the energy
8-16 and capacity to be purchased under the contract, the price of the energy,
8-17 capacity and ancillary services and the duration of the contract.
8-18 Information concerning the price of the energy, capacity and ancillary
8-19 services and any other terms or conditions of the contract that the
8-20 commission determines are commercially sensitive shall be deemed to be
8-21 confidential, and the commission shall establish a procedure for
8-22 protecting such information from disclosure.
8-23 4. If the commission determines that the contract:
8-24 (a) Is not in the best interest of the remaining customers of the electric
8-25 utility, the electric utility shall not accept the rights to the contract, and
8-26 the eligible customer is entitled to all rights to the contract.
8-27 (b) Is in the best interest of the remaining customers of the electric
8-28 utility, the electric utility shall accept the rights to the contract and the
8-29 eligible customer shall assign all rights to the contract to the electric
8-30 utility. A contract that is assigned to the electric utility pursuant to this
8-31 paragraph shall be deemed to be an approved part of the resource plan of
8-32 the electric utility and a prudent investment, and the electric utility may
8-33 recover all costs for the energy, capacity and ancillary services acquired
8-34 pursuant to the contract. To the extent practicable, the commission shall
8-35 take actions to ensure that the electric utility uses the energy, capacity
8-36 and ancillary services acquired pursuant to each such contract only for
8-37 the benefit of the remaining customers of the electric utility that are not
8-38 eligible customers, with a preference for the remaining customers of the
8-39 electric utility that are residential customers with small loads.
8-40 Sec. 22. 1. If an eligible customer is purchasing energy, capacity
8-41 or ancillary services from a provider of new electric resources, the
8-42 eligible customer may, pursuant to tariffs approved by the commission,
8-43 replace some or all, but not less than all at a single time-of-use meter, of
8-44 the energy, capacity or ancillary services purchased from the provider of
8-45 new electric resources with energy, capacity or ancillary services
8-46 purchased from an electric utility.
8-47 2. The tariffs approved by the commission pursuant to this section
8-48 must include, without limitation:
9-1 (a) Provisions requiring the eligible customer to pay any incremental
9-2 costs that are incurred by the electric utility to provide energy to the
9-3 eligible customer;
9-4 (b) Provisions requiring the eligible customer to provide reasonable
9-5 and adequate notice to the electric utility;
9-6 (c) Provisions establishing minimum terms during which the eligible
9-7 customer must continue to purchase energy from the electric utility; and
9-8 (d) Any other provisions that the commission determines are
9-9 necessary and reasonable to carry out and enforce the provisions of this
9-10 section.
9-11 Sec. 23. 1. A provider of new electric resources shall not sell
9-12 energy, capacity or ancillary services to an eligible customer unless the
9-13 customer has a time-of-use meter installed at the point of delivery of
9-14 energy to the eligible customer.
9-15 2. An electric utility shall install a time-of-use meter at each point of
9-16 delivery of energy to the eligible customer if the eligible customer does
9-17 not have a time-of-use meter at that point of delivery. The eligible
9-18 customer shall pay all costs for the time-of-use meter and for installation
9-19 of the time-of-use meter by the electric utility.
9-20 3. Not more than one person or entity may sell the energy that is
9-21 delivered to an eligible customer through any one time-of-use meter.
9-22 4. The provisions of this section do not prohibit:
9-23 (a) An eligible customer from having more than one time-of-use meter
9-24 installed for the same service location; or
9-25 (b) An eligible customer from installing any other meter or equipment
9-26 that is necessary or appropriate to the transaction with the provider, if
9-27 such a meter or equipment is otherwise consistent with system reliability.
9-28 Sec. 24. 1. An electric utility shall provide all transmission,
9-29 distribution, metering and other components of electric service that are
9-30 necessary for a provider of new electric resources to sell energy, capacity
9-31 and ancillary services to an eligible customer pursuant to the provisions
9-32 of this chapter. An electric utility shall provide each such component of
9-33 electric service pursuant to the tariffs and service agreements filed with
9-34 and approved by the appropriate regulatory authorities having
9-35 jurisdiction over each such component of electric service.
9-36 2. For each such component of electric service that is within the
9-37 jurisdiction of the commission, the commission shall establish just,
9-38 reasonable and nondiscriminatory rates.
9-39 3. The provisions of this chapter do not enlarge or expand any
9-40 existing rights under federal law or create any other rights with regard to
9-41 the transmission system of the electric utility.
9-42 4. When providing service pursuant to this chapter, an electric utility
9-43 is subject to all applicable statutes and regulations of this state and the
9-44 United States.
9-45 Sec. 25. Not later than 30 days after the end of each calendar
9-46 quarter, the commission shall submit to the legislative commission a
9-47 written report which summarizes for that calendar quarter:
9-48 1. Each application which was filed with the commission pursuant to
9-49 the provisions of this chapter and which requested approval of a
10-1 proposed transaction between an eligible customer and a provider of new
10-2 electric resources;
10-3 2. The information that the eligible customer included with the
10-4 application;
10-5 3. The findings of the commission concerning the effect of the
10-6 proposed transaction on the public interest; and
10-7 4. Whether the commission approved the application and, if so, the
10-8 effective date of the proposed transaction, the terms and conditions of the
10-9 proposed transaction, and the terms, conditions and payments ordered by
10-10 the commission.
10-11 Sec. 26. The commission shall adopt regulations to carry out and
10-12 enforce the provisions of this chapter.
10-13 Sec. 27. Chapter 704 of NRS is hereby amended by adding thereto a
10-14 new section to read as follows:
10-15 “Biomass” means any organic matter that is available on a renewable
10-16 basis, including, without limitation:
10-17 1. Agricultural crops and agricultural wastes and residues;
10-18 2. Wood and wood wastes and residues;
10-19 3. Animal wastes;
10-20 4. Municipal wastes; and
10-21 5. Aquatic plants.
10-22 Sec. 28. NRS 704.005 is hereby amended to read as follows:
10-23 704.005 As used in this chapter, unless the context otherwise requires,
10-24 the words and terms defined in NRS 704.010 to 704.030, inclusive, and
10-25 section 27 of this act have the meanings ascribed to them in those sections.
10-26 Sec. 29. Section 1 of Assembly Bill No. 197 of this session is hereby
10-27 amended to read as follows:
10-28 Section 1. Chapter 704 of NRS is hereby amended by adding
10-29 thereto a new section to read as follows:
10-30 1. On and after October 1, 2001, each electric utility shall
10-31 disclose to its retail customers information about electric services,
10-32 and any products and services relating thereto, that are being
10-33 provided to or purchased for those retail customers by the electric
10-34 utility. The disclosure must:
10-35 (a) Be in a standard, uniform format established by the
10-36 commission by regulation;
10-37 (b) Be included:
10-38 (1) At least two times each calendar year, as an insert in the
10-39 bills that the electric utility sends to its retail customers; and
10-40 (2) If the electric utility maintains a website on the Internet or
10-41 any successor to the Internet, on that website; and
10-42 (c) Include adequate information so that a retail customer can
10-43 readily evaluate his options for obtaining electric services or any
10-44 products or services relating thereto.
10-45 2. A disclosure required by this section must include, if
10-46 applicable:
10-47 (a) The average mix of energy sources used to generate the
10-48 electricity sold by the electric utility to the retail customer. An
10-49 electric utility may, if available, use a regional average that has been
11-1 determined by the commission for that portion of electricity sold by
11-2 the electric utility to the retail customer for which the specific mix of
11-3 energy sources cannot be discerned.
11-4 (b) The average emissions, measured in pounds per megawatt-
11-5 hour, of:
11-6 (1) Any high-level radioactive waste, sulfur dioxide, carbon
11-7 dioxide, oxides of nitrogen and heavy metals released in this state
11-8 from the generation of the electricity sold by the electric utility to the
11-9 retail customer; and
11-10 (2) Any other substances released in this state from the
11-11 generation of the electricity sold by the electric utility to the retail
11-12 customer which the commission, in cooperation with the division of
11-13 environmental protection of the state department of conservation
11-14 and natural resources, determines may cause a significant health or
11-15 environmental impact and for which sufficiently accurate and
11-16 reliable data is available.
11-17 If an electric utility uses a regional average for the mix of energy
11-18 sources pursuant to paragraph (a), the electric utility shall, if
11-19 available, use for the average emissions pursuant to this paragraph
11-20 a regional calculation that has been determined by the commission.
11-21 (c) Information concerning customer service.
11-22 (d) Information concerning any energy programs that provide
11-23 assistance to retail customers with low incomes, including, without
11-24 limitation, information on the procedures to apply for such
11-25 programs.
11-26 3. An electric utility:
11-27 (a) Shall make the disclosures required pursuant to this section
11-28 in accordance with the requirements adopted by the commission as
11-29 to form and substance; and
11-30 (b) Shall ensure that it provides the information in compliance
11-31 with all applicable state and federal law governing unfair
11-32 advertising and labeling.
11-33 4. The commission shall adopt such regulations concerning
11-34 form and substance for the disclosures required by this section as
11-35 are necessary to ensure that retail customers are provided with
11-36 sufficient information so that they can readily evaluate their options
11-37 for obtaining electric services and any products and services relating
11-38 thereto.
11-39 5. The provisions of this section do not require an electric utility
11-40 to disclose to its retail customers any information about electric
11-41 services, and any products and services relating thereto, that are
11-42 subject to the provisions of sections 3 to 26, inclusive, of Assembly
11-43 Bill No. 661 of this session.
11-44 6. As used in this section:
11-45 (a) “Electric utility” has the meaning ascribed to it in section 19
11-46 of Assembly Bill No. 369 of this session.
11-47 (b) “Energy source” includes, without limitation:
11-48 (1) Coal, natural gas, oil, propane and any other fossil fuel;
12-1 (2) Geothermal energy, solar energy, hydroelectric energy,
12-2 nuclear energy, wind, biofuel and biomass; and
12-3 (3) Any other specific energy source that is used to generate
12-4 the electricity provided to the retail customer.
12-5 Sec. 30. Assembly Bill No. 369 of this session is hereby amended by
12-6 adding thereto a new section designated sec. 15.5, following sec. 15, to
12-7 read as follows:
12-8 Sec. 15.5. The provisions of sections 8 to 18, inclusive, of this
12-9 act do not prohibit an electric utility from pledging, mortgaging,
12-10 granting a security interest in or otherwise encumbering any of its
12-11 generation assets or other property for the purpose of securing
12-12 indebtedness of the electric utility which exists on the effective date
12-13 of this act or which is issued or incurred by the electric utility after
12-14 the effective date of this act in financing transactions approved by
12-15 the commission.
12-16 Sec. 31. Section 35 of Assembly Bill No. 369 of this session is hereby
12-17 amended to read as follows:
12-18 Sec. 35. Except as otherwise provided in section 36 of this act
12-19 and notwithstanding the provisions of any other specific statute to the
12-20 contrary:
12-21 1. An electric utility shall not file an application for a fuel and
12-22 purchased power rider on or after the effective date of this act.
12-23 2. Each application for a fuel and purchased power rider filed by
12-24 an electric utility which is pending with the commission on the
12-25 effective date of this act and which the electric utility did not place
12-26 into effect before or on April 1, 2001, is void and unenforceable and is
12-27 not valid for any purpose after April 1, 2001.
12-28 3. If, before March 1, 2001, an electric utility incurred any costs
12-29 for fuel or purchased power, including, without limitation, any costs
12-30 for fuel or purchased power recorded or carried on the books and
12-31 records of the electric utility, and those costs were not recovered or
12-32 could not be recovered pursuant to a fuel and purchased power rider
12-33 placed into effect by the electric utility before March 1, 2001, the
12-34 electric utility is not entitled, on or after March 1, 2001, to recover
12-35 any of those costs for fuel or purchased power from customers, and
12-36 the commission shall not allow the electric utility to recover any of
12-37 those costs for fuel or purchased power from customers.
12-38 4. Except as otherwise provided in this section, on and after the
12-39 effective date of this act:
12-40 (a) The commission shall not take any further action on the
12-41 comprehensive energy plan, and each electric utility that jointly filed
12-42 the comprehensive energy plan shall be deemed to have withdrawn
12-43 the comprehensive energy plan;
12-44 (b) The rates that each electric utility placed into effect on
12-45 March 1, 2001, pursuant to the comprehensive energy plan shall be
12-46 deemed to be a component of the electric utility’s rates for fuel and
12-47 purchased power; and
12-48 (c) The revenues [collected] for services provided by each electric
12-49 utility [before April] for the period of March 1, 2001, to March 31,
13-1 2001, inclusive, from the rates that each electric utility placed into
13-2 effect on March 1, 2001, pursuant to the comprehensive energy plan
13-3 shall be deemed to be a credit in the electric utility’s deferred
13-4 accounts.
13-5 5. On or before October 1, 2001, each electric utility that
13-6 primarily serves densely populated counties shall file a general rate
13-7 application pursuant to subsection 3 of NRS 704.110, as amended by
13-8 this act. On or before December 1, 2001, each electric utility that
13-9 primarily serves densely populated counties shall file an application to
13-10 clear its deferred accounts pursuant to subsection 7 of NRS 704.110,
13-11 as amended by this act. After such an electric utility files the
13-12 application to clear its deferred accounts, the commission shall
13-13 investigate and determine whether the rates that the electric utility
13-14 placed into effect on March 1, 2001, pursuant to the comprehensive
13-15 energy plan are just and reasonable and reflect prudent business
13-16 practices. On the date on which the commission issues a final order on
13-17 the general rate application, the commission shall issue a final order
13-18 on the electric utility’s application to clear its deferred accounts. The
13-19 total rates to provide electric service that were in effect on April 1,
13-20 2001, for the electric utility must remain in effect until the date on
13-21 which the commission issues a final order on the general rate
13-22 application. The commission shall not adjust the rates of the electric
13-23 utility during this period unless such an adjustment is absolutely
13-24 necessary to avoid rates that are confiscatory under the Constitution of
13-25 the United States or the constitution of this state. The commission:
13-26 (a) May make such an adjustment only to the extent that it is
13-27 absolutely necessary to avoid an unconstitutional result; and
13-28 (b) Shall not, in any proceedings concerning such an adjustment,
13-29 approve any rate or grant any relief that is not absolutely necessary to
13-30 avoid an unconstitutional result.
13-31 After the electric utility files the general rate application that is
13-32 required by this subsection, the electric utility shall file general rate
13-33 applications in accordance with subsection 3 of NRS 704.110, as
13-34 amended by this act. After the electric utility files the application to
13-35 clear its deferred accounts that is required by this subsection, the
13-36 electric utility shall file applications to clear its deferred accounts in
13-37 accordance with section 19 of this act and subsection 7 of NRS
13-38 704.110, as amended by this act.
13-39 6. On or before December 1, 2001, each electric utility that
13-40 primarily serves less densely populated counties shall file a general
13-41 rate application pursuant to subsection 3 of NRS 704.110, as amended
13-42 by this act. On or before February 1, 2002, each electric utility that
13-43 primarily serves less densely populated counties shall file an
13-44 application to clear its deferred accounts pursuant to subsection 7 of
13-45 NRS 704.110, as amended by this act. After such an electric utility
13-46 files the application to clear its deferred accounts, the commission
13-47 shall investigate and determine whether the rates that the electric
13-48 utility placed into effect on March 1, 2001, pursuant to the
13-49 comprehensive energy plan are just and reasonable and reflect prudent
14-1 business practices. On the date on which the commission issues a final
14-2 order on the general rate application, the commission shall issue a
14-3 final order on the electric utility’s application to clear its deferred
14-4 accounts. The total rates to provide electric service that were in effect
14-5 on April 1, 2001, for the electric utility must remain in effect until the
14-6 date on which the commission issues a final order on the general rate
14-7 application. The commission shall not adjust the rates of the electric
14-8 utility during this period unless such an adjustment is absolutely
14-9 necessary to avoid rates that are confiscatory under the Constitution of
14-10 the United States or the constitution of this state. The commission:
14-11 (a) May make such an adjustment only to the extent that it is
14-12 absolutely necessary to avoid an unconstitutional result; and
14-13 (b) Shall not, in any proceedings concerning such an adjustment,
14-14 approve any rate or grant any relief that is not absolutely necessary to
14-15 avoid an unconstitutional result.
14-16 After the electric utility files the general rate application that is
14-17 required by this subsection, the electric utility shall file general rate
14-18 applications in accordance with subsection 3 of NRS 704.110, as
14-19 amended by this act. After the electric utility files the application to
14-20 clear its deferred accounts that is required by this subsection, the
14-21 electric utility shall file applications to clear its deferred accounts in
14-22 accordance with section 19 of this act and subsection 7 of NRS
14-23 704.110, as amended by this act.
14-24 Sec. 32. Section 6 of Senate Bill No. 372 of this session is hereby
14-25 amended to read as follows:
14-26 Sec. 6. 1. “Provider of electric service” and “provider” mean
14-27 any person or entity that is in the business of selling electricity to
14-28 retail customers for consumptionin this state, regardless of whether
14-29 the person or entity is otherwise subject to regulation by the
14-30 commission.
14-31 2. The term includes, without limitation, a provider of new
14-32 electric resources that is selling electricity to an eligible customer
14-33 for consumption in this state pursuant to the provisions of sections 3
14-34 to 26, inclusive, of Assembly Bill No. 661 of this session.
14-35 3. The term does not include:
14-36 (a) This state or an agency or instrumentality of this state.
14-37 (b) A rural electric cooperative established pursuant to chapter 81
14-38 of NRS.
14-39 (c) A general improvement district established pursuant to chapter
14-40 318 of NRS.
14-41 (d) A utility established pursuant to chapter 709 or 710 of NRS.
14-42 (e) A cooperative association, nonprofit corporation, nonprofit
14-43 association or provider of electric service which is declared to be a
14-44 public utility pursuant to NRS 704.673 and which provides service
14-45 only to its members.
14-46 (f) A landlord of a mobile home park or owner of a company town
14-47 who is subject to any of the provisions of NRS 704.905 to 704.960,
14-48 inclusive.
15-1 (g) A landlord who pays for electricity that is delivered through a
15-2 master meter and who distributes or resells the electricity to one or
15-3 more tenants for consumption in this state.
15-4 Sec. 33. Section 9 of Senate Bill No. 372 of this session is hereby
15-5 amended to read as follows:
15-6 Sec. 9. 1. “Retail customer” means [a customer who] an end-
15-7 use customer that purchases electricity [at retail.] for consumption in
15-8 this state.
15-9 2. The term includes, without limitation:
15-10 (a) This state, a political subdivision of this state or an agency or
15-11 instrumentality of this state or political subdivision of this state when
15-12 it is an end-use customer that purchases electricity [at retail; and] for
15-13 consumption in this state, including, without limitation, when it is
15-14 an eligible customer that purchases electricity for consumption in
15-15 this state from a provider of new electric resources pursuant to the
15-16 provisions of sections 3 to 26, inclusive, of Assembly Bill No. 661 of
15-17 this session.
15-18 (b) A residential, commercial or industrial end-use customer that
15-19 purchases electricity for consumption in this state, including,
15-20 without limitation, an eligible customer that purchases electricity for
15-21 consumption in this state from a provider of new electric resources
15-22 pursuant to the provisions of sections 3 to 26, inclusive, of Assembly
15-23 Bill No. 661 of this session.
15-24 (c) A landlord of a mobile home park or owner of a company town
15-25 who is subject to any of the provisions of NRS 704.905 to 704.960,
15-26 inclusive.
15-27 (d) A landlord who pays for electricity that is delivered through a
15-28 master meter and who distributes or resells the electricity to one or
15-29 more tenants for consumption in this state.
15-30 Sec. 34. 1. Section 2 of Assembly Bill No. 197 of this session is
15-31 hereby repealed.
15-32 2. Section 4 of Senate Bill No. 372 of this session is hereby repealed.
15-33 Sec. 35. 1. For the purposes of sections 3 to 26, inclusive, of this
15-34 act:
15-35 (a) An electric utility that provides distribution services to an eligible
15-36 customer who is purchasing energy, capacity or ancillary services from a
15-37 provider of new electric resources shall charge the eligible customer based
15-38 upon the rates for the electric utility’s distribution services that were on file
15-39 with the commission on April 1, 2001, until the commission approves a
15-40 change in those rates and such a change becomes effective.
15-41 (b) Not later than March 1, 2002, the commission shall establish the
15-42 initial rates for all other components of electric service which are within
15-43 the jurisdiction of the commission and which are necessary for a provider
15-44 of new electric resources to sell energy, capacity and ancillary services to
15-45 an eligible customer pursuant to the provisions of sections 3 to 26,
15-46 inclusive, of this act. The commission may establish such initial rates as a
15-47 part of a general rate application that is pending or filed with the
15-48 commission on or after the effective date of this act.
15-49 2. The commission shall:
16-1 (a) Not later than November 1, 2001, adopt regulations to carry out and
16-2 enforce the provisions of sections 3 to 26, inclusive, of this act.
16-3 (b) Not later than March 1, 2002, approve tariffs to carry out and
16-4 enforce the provisions of section 22 of this act.
16-5 3. Notwithstanding the provisions of section 25 of this act, the
16-6 commission is not required to submit a report to the legislative commission
16-7 for any calendar quarter that ends before October 1, 2001.
16-8 4. As used in this section, the words and terms defined in sections 4 to
16-9 16, inclusive, of this act have the meanings ascribed to them in those
16-10 sections.
16-11 Sec. 36. This act becomes effective upon passage and approval.
16-12 TEXT OF REPEALED SECTIONS
16-13 Section 2 of Assembly Bill No. 197 of this session:
16-14 Sec. 2. NRS 704.965 is hereby amended to read as follows:
16-15 704.965 As used in NRS 704.965 to 704.990, inclusive, and
16-16 section 1 of this act, unless the context otherwise requires, the words
16-17 and terms defined in NRS 704.966 to 704.975, inclusive, have the
16-18 meanings ascribed to them in those sections.
16-19 Section 4 of Senate Bill No. 372 of this session:
16-20 Sec. 4. “Biomass” means any organic matter that is available
16-21 on a renewable basis, including, without limitation:
16-22 1. Agricultural crops and agricultural wastes and residues;
16-23 2. Wood and wood wastes and residues;
16-24 3. Animal wastes;
16-25 4. Municipal wastes; and
16-26 5. Aquatic plants.
16-27 H