(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 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; authorizing the director of the department of business and industry to issue industrial development revenue bonds for certain renewable energy generation projects; creating the task force for renewable energy and energy conservation and prescribing its membership and duties; creating the trust fund for renewable energy and energy conservation; creating the office of energy within the office of the governor; transferring control of the Nevada state energy office from the director of the department of business and industry to the office of energy within the office of the governor; requiring certain lodging establishments to include certain information concerning energy costs on their statement of rates; 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;

2-1    3.  The energy markets in the western United States currently are

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

2-3  extremely high prices for electricity, both of which are damaging to the

2-4  strength of the economy of this state and to the well-being of the residents

2-5  of this state;

2-6    4.  The residents of this state would benefit from construction of new

2-7  generation assets in this state and from access to other new electric

2-8  resources, wherever located, that provide lower-priced electricity;

2-9    5.  The economic development that would result from construction in

2-10  this state of new generation assets, supporting gas pipelines and additional

2-11  infrastructure would be of special benefit to the rural areas of this state

2-12  where the new generation assets are most likely to be located;

2-13    6.  During this session, the legislature has considered a number of

2-14  different but complementary approaches to developing and using new

2-15  generation assets and other new electric resources and to increasing the

2-16  supply of reasonably priced electricity in this state;

2-17    7.  The development and use of new generation assets and other new

2-18  electric resources by eligible customers would permit the electric utilities

2-19  in this state to reduce their dependence on purchases of excessively priced

2-20  electricity from dysfunctional, short-term energy markets and would

2-21  thereby reduce the average system costs for such electric utilities;

2-22    8.  The development and use of new generation assets and other new

2-23  electric resources can be encouraged by allowing eligible customers to use

2-24  their own resources, initiative, expertise and credit to develop, access and

2-25  enter into agreements for the purchase of electricity from new generation

2-26  assets and other new electric resources; and

2-27    9.  To protect the electric utilities in this state and their remaining

2-28  customers, all transactions proposed by eligible customers pursuant to

2-29  sections 3 to 26, inclusive, of this act must be carefully reviewed by the

2-30  public utilities commission of Nevada to ensure that the electric utilities in

2-31  this state and their remaining customers are not subject to increased costs

2-32  as a result of the proposed transactions and that the proposed transactions

2-33  are not otherwise contrary to the public interest.

2-34    Sec. 2. Title 58 of NRS is hereby amended by adding thereto a new

2-35  chapter to consist of the provisions set forth as sections 3 to 26, inclusive,

2-36  of this act.

2-37    Sec. 3. As used in this chapter, unless the context otherwise

2-38  requires, the words and terms defined in sections 4 to 16, inclusive, of

2-39  this act have the meanings ascribed to them in those sections.

2-40    Sec. 4. “Ancillary services” means those generation services that:

2-41    1.  Are necessary to support the transmission of energy and capacity

2-42  from resources to loads while maintaining reliable operation of the

2-43  transmission system of the electric utility; and

2-44    2.  Are defined and established in applicable transmission tariffs on

2-45  file with the Federal Energy Regulatory Commission.

2-46    Sec. 5. “Calendar quarter” means each period of 3 consecutive

2-47  calendar months ending on March 31, June 30, September 30 and

2-48  December 31 in each calendar year.

3-1    Sec. 6. “Commission” means the public utilities commission of

3-2  Nevada.

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

3-4  interest that:

3-5    (a) Is in the business of providing electric service to customers;

3-6    (b) Holds a certificate of public convenience and necessity issued or

3-7  transferred pursuant to chapter 704 of NRS; and

3-8    (c) In the most recently completed calendar year or in any other

3-9  calendar year within the 7 calendar years immediately preceding the

3-10  most recently completed calendar year, had a gross operating revenue of

3-11  $250,000,000 or more in this state.

3-12    2.  The term does not include a cooperative association, nonprofit

3-13  corporation, nonprofit association or provider of electric service which is

3-14  declared to be a public utility pursuant to NRS 704.673 and which

3-15  provides service only to its members.

3-16    Sec. 8. “Electric utility that primarily serves densely populated

3-17  counties” means an electric utility that, with regard to the provision of

3-18  electric service, derives more of its annual gross operating revenue in

3-19  this state from customers located in counties whose population is 400,000

3-20  or more than it does from customers located in counties whose

3-21  population is less than 400,000.

3-22    Sec. 9. “Electric utility that primarily serves less densely populated

3-23  counties” means an electric utility that, with regard to the provision of

3-24  electric service, derives more of its annual gross operating revenue in

3-25  this state from customers located in counties whose population is less

3-26  than 400,000 than it does from customers located in counties whose

3-27  population is 400,000 or more.

3-28    Sec. 10. “Eligible customer” means an end-use customer which is:

3-29    1.  A nongovernmental commercial or industrial end-use customer

3-30  that has an average annual load of 1 megawatt or more in the service

3-31  territory of an electric utility.

3-32    2.  A governmental entity, including, without limitation, a

3-33  governmental entity providing educational or health care services, that:

3-34    (a) Performs its functions using one or more facilities which are

3-35  operated under a common budget and common control; and

3-36    (b) Has an average annual load of 1 megawatt or more in the service

3-37  territory of an electric utility.

3-38    Sec. 11. “Energy” means electrical energy.

3-39    Sec. 12. “Generation asset” means any plant, facility, equipment or

3-40  system which is located within or outside this state and which converts

3-41  nonelectrical energy into electrical energy or otherwise produces

3-42  electrical energy.

3-43    Sec. 13. “New electric resource” means:

3-44    1.  The energy, capacity or ancillary services and any increased or

3-45  additional energy, capacity or ancillary services which are:

3-46    (a) Made available from a generation asset that is not owned by an

3-47  electric utility or is not subject to contractual commitments to an electric

3-48  utility that make the energy, capacity or ancillary services from the

3-49  generation asset unavailable for purchase by an eligible customer; and

4-1    (b) Able to be delivered to an eligible customer.

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

4-3  available from a generation asset pursuant to an agreement described in

4-4  section 18 of this act.

4-5    Sec. 14. “Person” means:

4-6    1.  A natural person.

4-7    2.  Any form of business or social organization and any other

4-8  nongovernmental legal entity, including, without limitation, a

4-9  corporation, partnership, association, trust or unincorporated

4-10  organization.

4-11    3.  A governmental entity other than:

4-12    (a) This state or an agency or instrumentality of this state; or

4-13    (b) A political subdivision of this state or an agency or instrumentality

4-14  of a political subdivision of this state.

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

4-16  person who makes energy, capacity or ancillary services from a new

4-17  electric resource available to an eligible customer.

4-18    Sec. 16. “Time-of-use meter” means a meter that:

4-19    1.  Measures and records the electric demand, energy and power

4-20  factor on 15-minute intervals; and

4-21    2.  Is suitable for use with an electric demand of 1 megawatt or more.

4-22    Sec. 17. 1.  The provisions of this chapter do not alter, diminish or

4-23  otherwise affect any rights or obligations arising under any contract

4-24  which requires an electric utility to purchase energy, capacity or

4-25  ancillary services from another party and which exists on the effective

4-26  date of this act.

4-27    2.  Each electric utility or its assignee shall comply with the terms of

4-28  any contract which requires the electric utility or its assignee to purchase

4-29  energy, capacity or ancillary services from another party and which

4-30  exists on the effective date of this act.

4-31    Sec. 18. 1.  Except as otherwise provided in this section, an electric

4-32  utility may, at its discretion, enter into agreements relating to its

4-33  generation assets and the energy, capacity or ancillary services provided

4-34  by its generation assets with one or more other persons who are not

4-35  electric utilities. Such agreements, without limitation:

4-36    (a) May include agreements to construct or install a new generation

4-37  asset on real property that is adjacent to an existing generation asset

4-38  owned by the electric utility; and

4-39    (b) May provide for the sharing of available common facilities with

4-40  the existing generation asset or the reengineering, repowering or

4-41  expansion of the existing generation asset to generate energy more

4-42  efficiently and at a lower cost and to make more energy available to

4-43  customers in this state.

4-44    2.  Any increased energy, capacity or ancillary services made

4-45  available from a new generation asset or an existing generation asset

4-46  pursuant to an agreement described in subsection 1 shall be deemed to be

4-47  a new electric resource that may be:

4-48    (a) Owned by the parties to the agreement who are not electric

4-49  utilities; and

5-1    (b) Used or consumed by such parties for their own purposes, sold at

5-2  wholesale by such parties or sold by such parties to one or more eligible

5-3  customers pursuant to the provisions of this chapter.

5-4    3.  A transaction undertaken pursuant to an agreement described in

5-5  subsection 1:

5-6    (a) Must not impair system reliability or the ability of the electric

5-7  utility to provide electric service to its customers; and

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

5-9  Assembly Bill No. 369 of this session.

5-10    4.  The provisions of this section do not exempt any party to an

5-11  agreement described in subsection 1 from any applicable statutory or

5-12  regulatory requirements relating to siting, construction and operation of

5-13  a generation asset.

5-14    5.  The commission shall encourage the development of new electric

5-15  resources and shall not exercise its regulatory authority in a manner that

5-16  unnecessarily or unreasonably restricts, conditions or discourages any

5-17  agreement described in subsection 1 that is likely to result in increased

5-18  energy, capacity or ancillary services from a generation asset or

5-19  improved or more efficient operation or management of a generation

5-20  asset.

5-21    Sec. 19. 1.  Except as otherwise provided in this section, a provider

5-22  of new electric resources may sell energy, capacity or ancillary services to

5-23  one or more eligible customers if the eligible customers have been

5-24  approved to purchase energy, capacity and ancillary services from the

5-25  provider pursuant to the provisions of sections 20 and 21 of this act.

5-26    2.  A provider of new electric resources shall not sell energy, capacity

5-27  or ancillary services to an eligible customer:

5-28    (a) Before April 1, 2002, if the eligible customer’s load is in the

5-29  service territory of an electric utility that primarily serves less densely

5-30  populated counties;

5-31    (b) Before June 1, 2002, if the eligible customer’s load is in the

5-32  service territory of an electric utility that primarily serves densely

5-33  populated counties; or

5-34    (c) If the transaction violates the provisions of this chapter.

5-35    3.  A provider of new electric resources that sells energy, capacity or

5-36  ancillary services to an eligible customer pursuant to the provisions of

5-37  this chapter:

5-38    (a) Does not become and shall not be deemed to be a public utility

5-39  solely because of that transaction; and

5-40    (b) Does not become and shall not be deemed to be subject to the

5-41  jurisdiction of the commission except as otherwise provided in this

5-42  chapter or by specific statute.

5-43    4.  If a provider of new electric resources is not a public utility in this

5-44  state and is not otherwise authorized by the provisions of a specific

5-45  statute to sell energy, capacity or ancillary services at retail in this state,

5-46  the provider shall not sell energy, capacity or ancillary services at retail

5-47  in this state to a person or entity that is not an eligible customer.

 

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

6-2  from an electric utility shall not purchase energy, capacity or ancillary

6-3  services from a provider of new electric resources and an eligible

6-4  customer that is purchasing energy, capacity or ancillary services from a

6-5  provider of new electric resources shall not purchase energy, capacity or

6-6  ancillary services from another provider unless:

6-7    (a) The eligible customer files an application with the commission not

6-8  later than 180 days before the date on which the eligible customer

6-9  intends to begin purchasing energy, capacity or ancillary services from

6-10  the provider; and

6-11    (b) The commission approves the application by a written order issued

6-12  in accordance with the provisions of this section and section 21 of this

6-13  act.

6-14  The date on which the eligible customer intends to begin purchasing

6-15  energy, capacity or ancillary services from the provider must not be

6-16  sooner than the date on which the provider is authorized by section 19 of

6-17  this act to begin selling energy, capacity or ancillary services to the

6-18  eligible customer.

6-19    2.  Except as otherwise provided in subsection 3, each application

6-20  filed pursuant to this section must include:

6-21    (a) Information demonstrating that the person filing the application is

6-22  an eligible customer;

6-23    (b) Information demonstrating that the proposed provider will provide

6-24  energy, capacity or ancillary services from a new electric resource;

6-25    (c) Information concerning the terms and conditions of the proposed

6-26  transaction that is necessary for the commission to evaluate the impact of

6-27  the proposed transaction on customers and the public interest, including,

6-28  without limitation, information concerning the duration of the proposed

6-29  transaction and the amount of energy, capacity or ancillary services to be

6-30  purchased from the provider; and

6-31    (d) Any other information required pursuant to the regulations

6-32  adopted by the commission.

6-33    3.  Except as otherwise provided in section 21 of this act, the

6-34  commission shall not require the eligible customer or provider to

6-35  disclose:

6-36    (a) The price that is being paid by the eligible customer to purchase

6-37  energy, capacity or ancillary services from the provider; or

6-38    (b) Any other terms or conditions of the proposed transaction that the

6-39  commission determines are commercially sensitive.

6-40    4.  The commission shall provide public notice of the application of

6-41  the eligible customer and an opportunity for a hearing on the application

6-42  in a manner that is consistent with the provisions of NRS 703.320 and

6-43  the regulations adopted by the commission.

6-44    5.  The commission shall approve the application of the eligible

6-45  customer unless the commission finds that the proposed transaction:

6-46    (a) Will be contrary to the public interest; or

6-47    (b) Does not comply with the provisions of section 21 of this act, if

6-48  those provisions apply to the proposed transaction.

7-1    6.  In determining whether the proposed transaction will be contrary

7-2  to the public interest, the commission shall consider, without limitation:

7-3    (a) Whether the electric utility that has been providing electric service

7-4  to the eligible customer will be burdened by increased costs as a result of

7-5  the proposed transaction or whether any remaining customer of the

7-6  electric utility will pay increased costs for electric service as a result of

7-7  the proposed transaction;

7-8    (b) Whether the proposed transaction will impair system reliability or

7-9  the ability of the electric utility to provide electric service to its remaining

7-10  customers; and

7-11    (c) Whether the proposed transaction will add energy, capacity or

7-12  ancillary services to the supply in this state.

7-13    7.  If the commission approves the application of the eligible

7-14  customer:

7-15    (a) The eligible customer shall not begin purchasing energy, capacity

7-16  or ancillary services from the provider pursuant to the proposed

7-17  transaction sooner than 180 days after the date on which the application

7-18  was filed; and

7-19    (b) The commission shall order such terms, conditions and payments

7-20  as the commission deems necessary and appropriate to ensure that the

7-21  proposed transaction will not be contrary to the public interest. Such

7-22  terms, conditions and payments:

7-23      (1) Must be fair and nondiscriminatory as between the eligible

7-24  customer and the remaining customers of the electric utility; and

7-25      (2) Must include, without limitation, payment by the eligible

7-26  customer to the electric utility of the eligible customer’s load-share

7-27  portion of any unrecovered balance in the deferred accounts of the

7-28  electric utility.

7-29    8.  If the commission does not enter a final order on the application

7-30  of the eligible customer within 90 days after the date on which the

7-31  application was filed with the commission:

7-32    (a) The application shall be deemed to be approved by the

7-33  commission; and

7-34    (b) The eligible customer shall not begin purchasing energy, capacity

7-35  or ancillary services from the provider pursuant to the proposed

7-36  transaction sooner than 180 days after the date on which the application

7-37  was filed.

7-38    Sec. 21. 1.  For eligible customers whose loads are in the service

7-39  territory of an electric utility that primarily serves densely populated

7-40  counties, the aggregate amount of energy that all such eligible customers

7-41  purchase from providers of new electric resources before July 1, 2003,

7-42  must not exceed 50 percent of the difference between the existing supply

7-43  of energy generated in this state that is available to the electric utility and

7-44  the existing demand for energy in this state that is consumed by the

7-45  customers of the electric utility, as determined by the commission.

7-46    2.  An eligible customer that is a nongovernmental commercial or

7-47  industrial end-use customer whose load is in the service territory of an

7-48  electric utility that primarily serves densely populated counties shall not

7-49  purchase energy, capacity or ancillary services from a provider of new

8-1  electric resources unless, as part of the proposed transaction, the eligible

8-2  customer agrees to:

8-3    (a) Contract with the provider to purchase:

8-4       (1) An additional amount of energy which is equal to 10 percent of

8-5  the total amount of energy that the eligible customer is purchasing for its

8-6  own use under the proposed transaction and which is purchased at the

8-7  same price, terms and conditions as the energy purchased by the eligible

8-8  customer for its own use; and

8-9       (2) The capacity and ancillary services associated with the

8-10  additional amount of energy at the same price, terms and conditions as

8-11  the capacity and ancillary services purchased by the eligible customer for

8-12  its own use; and

8-13    (b) Offers to assign the rights to the contract to the electric utility for

8-14  use by the remaining customers of the electric utility.

8-15    3.  If an eligible customer is subject to the provisions of subsection 2,

8-16  the eligible customer shall include with its application filed pursuant to

8-17  section 20 of this act all information concerning the contract offered to

8-18  the electric utility that is necessary for the commission to determine

8-19  whether it is in the best interest of the remaining customers of the electric

8-20  utility for the electric utility to accept the rights to the contract. Such

8-21  information must include, without limitation, the amount of the energy

8-22  and capacity to be purchased under the contract, the price of the energy,

8-23  capacity and ancillary services and the duration of the contract.

8-24  4.  Notwithstanding any specific statute to the contrary, information

8-25  concerning the price of the energy, capacity and ancillary services and

8-26  any other terms or conditions of the contract that the commission

8-27  determines are commercially sensitive:

8-28  (a) Must not be disclosed by the commission except to the regulatory

8-29  operations staff of the commission, the consumer’s advocate and his staff

8-30  and the electric utility for the purposes of carrying out the provisions of

8-31  this section; and

8-32  (b) Shall be deemed to be confidential for all other purposes, and the

8-33  commission shall take such actions as are necessary to protect the

8-34  confidentiality of such information.

8-35    5.  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    6.  The provisions of this section do not exempt the electric utility, in

9-4  whole or in part, from the requirements imposed on the electric utility

9-5  pursuant to sections 3 to 12, inclusive, of Senate Bill No. 372 of this

9-6  session to comply with its portfolio standard for renewable energy. The

9-7  commission shall not take any actions pursuant to this section that

9-8  conflict with or diminish those requirements.

9-9    7.  As used in this section, “consumer’s advocate” means the

9-10  consumer’s advocate of the bureau of consumer protection in the office

9-11  of the attorney general.

9-12    Sec. 22. 1.  If an eligible customer is purchasing energy, capacity

9-13  or ancillary services from a provider of new electric resources, the

9-14  eligible customer may, pursuant to tariffs approved by the commission,

9-15  replace some or all, but not less than all at a single time-of-use meter, of

9-16  the energy, capacity or ancillary services purchased from the provider of

9-17  new electric resources with energy, capacity or ancillary services

9-18  purchased from an electric utility.

9-19    2.  The tariffs approved by the commission pursuant to this section

9-20  must include, without limitation:

9-21    (a) Provisions requiring the eligible customer to pay any incremental

9-22  costs that are incurred by the electric utility to provide energy to the

9-23  eligible customer;

9-24    (b) Provisions requiring the eligible customer to provide reasonable

9-25  and adequate notice to the electric utility;

9-26    (c) Provisions establishing minimum terms during which the eligible

9-27  customer must continue to purchase energy from the electric utility; and

9-28    (d) Any other provisions that the commission determines are

9-29  necessary and reasonable to carry out and enforce the provisions of this

9-30  section.

9-31    Sec. 23. 1.  A provider of new electric resources shall not sell

9-32  energy, capacity or ancillary services to an eligible customer unless the

9-33  customer has a time-of-use meter installed at the point of delivery of

9-34  energy to the eligible customer.

9-35  2.  An electric utility shall install a time-of-use meter at each point of

9-36  delivery of energy to the eligible customer if the eligible customer does

9-37  not have a time-of-use meter at that point of delivery. If the eligible

9-38  customer is:

9-39  (a) A nongovernmental commercial or industrial end-use customer,

9-40  the eligible customer or the provider shall pay all costs for the time-of-

9-41  use meter and for installation of the time-of-use meter by the electric

9-42  utility.

9-43  (b) A governmental entity, the provider shall pay all costs for the time-

9-44  of-use meter and for installation of the time-of-use meter by the electric

9-45  utility.

9-46    3.  Not more than one person or entity may sell the energy that is

9-47  delivered to an eligible customer through any one time-of-use meter.

9-48    4.  The provisions of this section do not prohibit:

10-1    (a) An eligible customer from having more than one time-of-use meter

10-2  installed for the same service location; or

10-3    (b) An eligible customer from installing any other meter or equipment

10-4  that is necessary or appropriate to the transaction with the provider, if

10-5  such a meter or equipment is otherwise consistent with system reliability.

10-6    Sec. 24. 1.  An electric utility shall provide all transmission,

10-7  distribution, metering and other components of electric service that are

10-8  necessary for a provider of new electric resources to sell energy, capacity

10-9  and ancillary services to an eligible customer pursuant to the provisions

10-10  of this chapter. An electric utility shall provide each such component of

10-11  electric service pursuant to the tariffs and service agreements filed with

10-12  and approved by the appropriate regulatory authorities having

10-13  jurisdiction over each such component of electric service.

10-14  2.  For each such component of electric service that is within the

10-15  jurisdiction of the commission, the commission shall establish just,

10-16  reasonable and nondiscriminatory rates.

10-17  3.  The provisions of this chapter do not enlarge or expand any

10-18  existing rights under federal law or create any other rights with regard to

10-19  the transmission system of the electric utility.

10-20  4.  When providing service pursuant to this chapter, an electric utility

10-21  is subject to all applicable statutes and regulations of this state and the

10-22  United States.

10-23  Sec. 25. Not later than 30 days after the end of each calendar

10-24  quarter, the commission shall submit to the legislative commission a

10-25  written report which summarizes for that calendar quarter:

10-26  1.  Each application which was filed with the commission pursuant to

10-27  the provisions of this chapter and which requested approval of a

10-28  proposed transaction between an eligible customer and a provider of new

10-29  electric resources;

10-30  2.  The information that the eligible customer included with the

10-31  application;

10-32  3.  The findings of the commission concerning the effect of the

10-33  proposed transaction on the public interest; and

10-34  4.  Whether the commission approved the application and, if so, the

10-35  effective date of the proposed transaction, the terms and conditions of the

10-36  proposed transaction, and the terms, conditions and payments ordered by

10-37  the commission.

10-38  Sec. 26. The commission shall adopt regulations to carry out and

10-39  enforce the provisions of this chapter.

10-40  Sec. 27. Chapter 703 of NRS is hereby amended by adding thereto a

10-41  new section to read as follows:

10-42  1.  In any contested case pending before the commission, the

10-43  regulatory operations staff of the commission may, without filing a

10-44  petition for leave to intervene:

10-45  (a) Appear and participate in the contested case as an independent

10-46  party; and

10-47  (b) Be represented by legal counsel in the contested case.

10-48  2.  A commissioner may not discuss with a member of the regulatory

10-49  operations staff of the commission any substantive issues of fact or law

11-1  concerning a contested case pending before the commission except upon

11-2  notice to all parties to the contested case and an opportunity for all such

11-3  parties to participate.

11-4  3.  As used in this section, “contested case” has the meaning ascribed

11-5  to it in NRS 233B.032.

11-6  Sec. 28. NRS 703.030 is hereby amended to read as follows:

11-7  703.030  1.  The commission consists of [three] five commissioners

11-8  appointed by the governor . [for terms of] After the initial terms, the term

11-9  of each commissioner is 4 years.

11-10  2.  The governor shall appoint [as members of the commission

11-11  persons] :

11-12  (a) One commissioner to represent the general public.

11-13  (b) Four commissioners who have at least 2 years of experience in one

11-14  or more of the following fields:

11-15  [(a)] (1) Accounting.

11-16  [(b)] (2) Business administration.

11-17  [(c)] (3) Finance or economics.

11-18  [(d)] (4) Administrative law.

11-19  [(e)] (5) Professional engineering.

11-20  Not more than two of the commissioners appointed pursuant to this

11-21  paragraph may be from the same field of experience.

11-22  3.  Not more than [two] three of the commissioners may be [:

11-23  (a) Members] members of the same political party.

11-24  [(b) From the same field of experience.]

11-25  4.  A vacancy on the commission must be filled for the remainder of

11-26  the unexpired term in the same manner as the original appointment.

11-27  Sec. 29. NRS 703.110 is hereby amended to read as follows:

11-28  703.110  1.  [The] Except as otherwise provided in subsection 2, a

11-29  majority of the commissioners [have] has full power to act in all matters

11-30  within [their jurisdiction.] the jurisdiction of the commission and shall

11-31  exercise all the powers of the commission.

11-32  2.  If [two] a majority of the commissioners are disqualified or if there

11-33  are [two] vacancies within the [commission,] offices of a majority of the

11-34  commissioners, the remaining commissioners or, if only one

11-35  commissioner is remaining, the remaining commissioner [or] has full

11-36  power to act in all matters within the jurisdiction of the commission and

11-37  shall exercise all the powers of the commission.

11-38  3.  Except as otherwise provided in this chapter, all hearings and

11-39  meetings conducted by the commission must be open to the public.

11-40  Sec. 30. NRS 703.130 is hereby amended to read as follows:

11-41  703.130  1.  The commission shall appoint a deputy commissioner

11-42  who shall serve in the unclassified service of the state.

11-43  2.  The commission shall appoint a secretary who shall perform such

11-44  administrative and other duties as are prescribed by the commission. The

11-45  commission shall also appoint an assistant secretary.

11-46  3.  The commission may employ such other clerks, experts or engineers

11-47  as may be necessary.

11-48  4.  Except as otherwise provided in subsection 5, the commission:

12-1  (a) May appoint one or more hearing officers for a period specified by

12-2  the commission to conduct proceedings or hearings that may be conducted

12-3  by the commission pursuant to chapters 704, 704A, 705, 708 and 711 of

12-4  NRS [.] and sections 3 to 26, inclusive, of this act.

12-5  (b) Shall prescribe by regulation the procedure for appealing a decision

12-6  of a hearing officer to the commission.

12-7  5.  The commission shall not appoint a hearing officer to conduct

12-8  proceedings or hearings :

12-9  (a) In any matter pending before the commission pursuant to sections

12-10  8 to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; or

12-11  (b) In any matter pending before the commission pursuant to NRS

12-12  704.070 to 704.110, inclusive, and sections 41 to 46, inclusive, of this act

12-13  in which an electric utility has filed a general rate application or an

12-14  application to clear its deferred accounts.

12-15  6.  As used in this section, “electric utility” has the meaning ascribed

12-16  to it in section 19 of Assembly Bill No. 369 of this session.

12-17  Sec. 31. NRS 703.164 is hereby amended to read as follows:

12-18  703.164  1.  The commission may employ, or retain on a contract

12-19  basis, legal counsel who shall:

12-20  (a) Except as otherwise provided in subsection 2, be counsel and

12-21  attorney for the commission in all actions, proceedings and hearings.

12-22  (b) Prosecute in the name of the [public utilities commission of Nevada]

12-23  commission all civil actions for the enforcement of chapters 704, 704A,

12-24  705 and 708 of NRS and sections 3 to 26, inclusive, of this act and for the

12-25  recovery of any penalty or forfeiture provided for therein.

12-26  (c) Generally aid the commission in the performance of its duties and

12-27  the enforcement of chapters 704, 704A, 705 and 708 of NRS [.] and

12-28  sections 3 to 26, inclusive, of this act.

12-29  2.  Each district attorney shall:

12-30  (a) Prosecute any violation of chapter 704, 704A, 705, 708 or 711 of

12-31  NRS for which a criminal penalty is provided and which occurs in his

12-32  county.

12-33  (b) Aid in any investigation, prosecution, hearing or trial held under the

12-34  provisions of chapter 704, 704A, 705, 708 or 711 of NRS and, at the

12-35  request of the commission or its legal counsel, act as counsel and attorney

12-36  for the commission.

12-37  3.  The attorney general shall, if the district attorney fails or refuses to

12-38  do so, prosecute all violations of the laws of this state by public utilities

12-39  under the jurisdiction of the commission and their officers, agents and

12-40  employees.

12-41  4.  The attorney general is not precluded from appearing in or moving

12-42  to intervene in any action and representing the interest of the State of

12-43  Nevada in any action in which the commission is a party and is represented

12-44  by independent counsel.

12-45  Sec. 32. NRS 703.196 is hereby amended to read as follows:

12-46  703.196  1.  Any books, accounts, records, minutes, papers and

12-47  property of any public utility that are subject to examination pursuant to

12-48  NRS 703.190 or 703.195 and are made available to the commission, any

12-49  officer or employee of the commission, the bureau of consumer protection

13-1  in the office of the attorney general or any other person under the condition

13-2  that the disclosure of such information to the public be withheld or

13-3  otherwise limited, must not be disclosed to the public unless the

13-4  commission first determines that the disclosure is justified.

13-5  2.  The commission shall take such actions as are necessary to protect

13-6  the confidentiality of such information, including, without limitation:

13-7  (a) Granting such protective orders as it deems necessary; and

13-8  (b) Holding closed hearings to receive or examine such information.

13-9  3.  If the commission closes a hearing to receive or examine such

13-10  information, it shall:

13-11  (a) Restrict access to the records and transcripts of such hearings

13-12  without the prior approval of the commission or an order of a court of

13-13  competent jurisdiction authorizing access to the records or transcripts; and

13-14  (b) Prohibit any participant at such a hearing from disclosing such

13-15  information without the prior authorization of the commission.

13-16  4.  A representative of the regulatory operations staff of the

13-17  commission and the bureau of consumer protection:

13-18  (a) May attend any closed hearing held pursuant to this section; and

13-19  (b) Have access to any records or other information determined to be

13-20  confidential pursuant to this section.

13-21  5.  The commission shall consider in an open meeting whether the

13-22  information reviewed or examined in a closed hearing may be disclosed

13-23  without revealing the confidential subject matter of the information. To the

13-24  extent the commission determines the information may be disclosed, the

13-25  information must become a part of the records available to the public.

13-26  Information which the commission determines may not be disclosed must

13-27  be kept under seal.

13-28  Sec. 33. NRS 703.320 is hereby amended to read as follows:

13-29  703.320  1.  In any matter pending before the commission, if a hearing

13-30  is required by a specific statute or is otherwise required by the commission,

13-31  the commission shall give notice of the pendency of the matter to all

13-32  persons entitled to notice of the hearing. The commission shall by

13-33  regulation specify:

13-34  (a) The manner of giving notice in each type of proceeding; and

13-35  (b) The persons entitled to notice in each type of proceeding.

13-36  2.  The commission shall not dispense with a hearing [in] :

13-37  (a) In any matter pending before the commission pursuant to sections 8

13-38  to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; or

13-39  (b) Except as otherwise provided in subsection 4 of NRS 704.100, in

13-40  any matter pending before the commission pursuant to NRS 704.070 to

13-41  704.110, inclusive, and sections 41 to 46, inclusive, of this act in which

13-42  an electric utility has filed a general rate application or an application to

13-43  clear its deferred accounts.

13-44  3.  In any other matter pending before the commission, the commission

13-45  may dispense with a hearing and act upon the matter pending unless,

13-46  within 10 days after the date of the notice of pendency, a person entitled to

13-47  notice of the hearing files with the commission a request that the hearing

13-48  be held. If such a request for a hearing is filed, the commission shall give at

13-49  least 10 days’ notice of the hearing.

14-1  4.  As used in this section, “electric utility” has the meaning ascribed

14-2  to it in section 19 of Assembly Bill No. 369 of this session.

14-3  Sec. 34. NRS 703.330 is hereby amended to read as follows:

14-4  703.330  1.  A complete record must be kept of all hearings before the

14-5  commission . [, and all] All testimony at such hearings must be taken

14-6  down by the stenographer appointed by the commission, or, under the

14-7  direction of any competent person appointed by the commission, must be

14-8  reported by sound recording equipment in the manner authorized for

14-9  reporting testimony in district courts. The testimony reported by a

14-10  stenographer must be transcribed, and the transcript filed with the record in

14-11  the matter. The commission may by regulation provide for the transcription

14-12  or safekeeping of sound recordings. Cost of recording and transcribing

14-13  testimony at any hearing, except those hearings ordered pursuant to NRS

14-14  703.310 , must be paid by the applicant. If a complaint is made pursuant to

14-15  NRS 703.310 by a customer or by a political subdivision of the state or

14-16  municipal organization, the complainant is not liable for any costs.

14-17  Otherwise, if there are several applicants or parties to any hearing, the

14-18  commission may apportion the costs among them in its discretion.

14-19  2.  [Whenever any complaint] If a petition is served upon the

14-20  commission as provided in NRS 703.373 for the bringing of an action

14-21  against the commission, before the action is reached for trial, the

14-22  commission shall file a certified copy of all proceedings and testimony

14-23  taken with the clerk of the court in which the action is pending.

14-24  3.  A copy of the proceedings and testimony must be furnished to any

14-25  party, on payment of a reasonable amount, to be fixed by the commission,

14-26  and the amount must be the same for all parties.

14-27  4.  The provisions of this section do not prohibit the commission from

14-28  [restricting] :

14-29  (a) Restricting access to the records and transcripts of a hearing

14-30  pursuant to paragraph (a) of subsection 3 of NRS 703.196.

14-31  (b) Protecting the confidentiality of information pursuant to section

14-32  20 or 21 of this act.

14-33  Sec. 35. NRS 703.374 is hereby amended to read as follows:

14-34  703.374  1.  A court of competent jurisdiction, after hearing, may

14-35  issue an injunction suspending or staying any final order of the commission

14-36  if:

14-37  (a) The applicant has filed a motion for a preliminary injunction;

14-38  (b) The applicant has served the motion on the commission and other

14-39  interested parties within 20 days after the rendition of the order on which

14-40  the complaint is based;

14-41  (c) The court finds there is a reasonable likelihood that the applicant

14-42  will prevail on the merits of the matter and will suffer irreparable injury if

14-43  injunctive relief is not granted; and

14-44  (d) The applicant files a bond or other undertaking to secure the adverse

14-45  parties in such manner as the court finds sufficient.

14-46  2.  The decision of the commission on each matter considered shall be

14-47  deemed reasonable and just until set aside by the court . [, and in] In all

14-48  actions for an injunction or [otherwise] for any other relief, the burden of

14-49  proof is upon the party attacking or resisting the order of the commission to

15-1  show by clear and satisfactory evidence that the order is unlawful [,] or

15-2  unreasonable . [, as the case may be.]

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

15-4  is one which [permanently suspends] :

15-5  (a) Disapproves a public utility’s proposed changes in a schedule of

15-6  rates [and charges or a] , or any part thereof , [filed by any public utility]

15-7  pursuant to NRS 704.070 to 704.110, inclusive, [or which otherwise] and

15-8  sections 41 to 46, inclusive, of this act; or

15-9  (b) Otherwise prevents the proposed changes in the schedule , or any

15-10  part thereof , from taking effect,

15-11  the public utility complaining may [keep in effect or put] place into effect

15-12  [, as the case may be, the suspended] the proposed changes in the schedule

15-13  , or any part thereof , pending final determination by the court having

15-14  jurisdiction, by filing a bond with the court in such an amount as the court

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

15-16  amount if the [rate or rates so suspended] proposed changes in the

15-17  schedule, or any part thereof, are finally determined by the court to be

15-18  excessive.

15-19  Sec. 36.  NRS 703.377 is hereby amended to read as follows:

15-20  703.377  1.  [No] Any certificate of public convenience and necessity,

15-21  permit or license issued or transferred in accordance with the [terms]

15-22  provisions of NRS [704.005] 704.001 to 704.751, inclusive, is [either] not

15-23  a franchise or irrevocable.

15-24  2.  Upon receipt of a written complaint or on its own motion, the

15-25  commission may, after investigation and hearing, revoke any certificate,

15-26  permit or license, [but as to] except that the commission may not revoke

15-27  the certificate of a public utility [only if] unless the commission has

15-28  arranged for another public utility to provide the service for which the

15-29  certificate was granted.

15-30  3.  [The proceedings thereafter are governed by] If the commission

15-31  revokes any certificate, permit or license, the person who held the

15-32  certificate, permit or license may seek judicial review pursuant to the

15-33  provisions of NRS 703.373 to 703.376, inclusive.

15-34  Sec. 37.  Chapter 704 of NRS is hereby amended by adding thereto the

15-35  provisions set forth as sections 38 to 46, inclusive, of this act.

15-36  Sec. 38. “Biomass” means any organic matter that is available on a

15-37  renewable basis, including, without limitation:

15-38  1.  Agricultural crops and agricultural wastes and residues;

15-39  2.  Wood and wood wastes and residues;

15-40  3.  Animal wastes;

15-41  4.  Municipal wastes; and

15-42  5.  Aquatic plants.

15-43  Sec. 39. “Consumer’s advocate” means the consumer’s advocate of

15-44  the bureau of consumer protection in the office of the attorney general.

15-45  Sec. 40. “Renewable energy” has the meaning ascribed to it in

15-46  section 7 of Senate Bill No. 372 of this session.

15-47  Sec. 41. As used in NRS 704.070 to 704.110, inclusive, and sections

15-48  41 to 46, inclusive, of this act, unless the context otherwise requires, the

16-1  words and terms defined in sections 42, 43 and 44 of this act have the

16-2  meanings ascribed to them in those sections.

16-3  Sec. 42. “Application to make changes in any schedule” and

16-4  “application” include, without limitation:

16-5  1.  A general rate application;

16-6  2.  An application to recover the increased cost of purchased fuel,

16-7  purchased power, or natural gas purchased for resale; and

16-8  3.  An application to clear deferred accounts.

16-9  Sec. 43. “Rate” means any individual or joint rate, toll or charge

16-10  imposed by a public utility for a service performed or product furnished

16-11  by the public utility.

16-12  Sec. 44. “Schedule” means any schedule that establishes or

16-13  otherwise sets the rates for a public utility and any individual or joint

16-14  rule, regulation, practice, classification or measurement that in any

16-15  manner affects those rates.

16-16  Sec. 45. For the purposes of NRS 704.070 to 704.110, inclusive, and

16-17  sections 41 to 46, inclusive, of this act, a public utility shall be deemed to

16-18  make changes in a schedule if the public utility implements a new

16-19  schedule or amends an existing schedule.

16-20  Sec. 46. 1.  The commission shall conduct a consumer session to

16-21  solicit comments from the public in any matter pending before the

16-22  commission pursuant to NRS 704.070 to 704.110, inclusive, and sections

16-23  41 to 46, inclusive, of this act in which:

16-24  (a) A public utility has filed a general rate application, an application

16-25  to recover the increased cost of purchased fuel, purchased power, or

16-26  natural gas purchased for resale or an application to clear its deferred

16-27  accounts; and

16-28  (b) The changes proposed in the application will result in an increase

16-29  in annual gross operating revenue, as certified by the applicant, in an

16-30  amount that will exceed $50,000 or 10 percent of the applicant’s annual

16-31  gross operating revenue, whichever is less.

16-32  2.  In addition to the case-specific consumer sessions required by

16-33  subsection 1, the commission shall, during each calendar year, conduct

16-34  at least one general consumer session in the county with the largest

16-35  population in this state and at least one general consumer session in the

16-36  county with the second largest population in this state. At each general

16-37  consumer session, the commission shall solicit comments from the public

16-38  on issues concerning public utilities. Not later than 60 days after each

16-39  general consumer session, the commission shall submit the record from

16-40  the general consumer session to the legislative commission.

16-41  Sec. 47. NRS 704.005 is hereby amended to read as follows:

16-42  704.005  As used in this chapter, unless the context otherwise requires,

16-43  the words and terms defined in NRS 704.010 to 704.030, inclusive, and

16-44  sections 38 and 39 of this act have the meanings ascribed to them in those

16-45  sections.

16-46  Sec. 48. NRS 704.033 is hereby amended to read as follows:

16-47  704.033  1.  The commission shall levy and collect an annual

16-48  assessment from all public utilities subject to the jurisdiction of the

16-49  commission.

17-1  2.  Except as otherwise provided in subsection 3, the annual assessment

17-2  must be:

17-3  (a) For the use of the commission, not more than 3.50 mills; and

17-4  (b) For the use of the consumer’s advocate , [of the bureau of consumer

17-5  protection in the office of the attorney general,] not more than

17-6  0.75 mills,

17-7  on each dollar of gross operating revenue derived from the intrastate

17-8  operations of such utilities in the State of Nevada, except that the minimum

17-9  assessment in any 1 year must be $10. The total annual assessment must be

17-10  not more than 4.25 mills.

17-11  3.  For railroads the total annual assessment must be the amount levied

17-12  for the use of the commission pursuant to paragraph (a) of subsection 2.

17-13  The levy for the use of the consumer’s advocate must not be assessed

17-14  against railroads.

17-15  4.  The gross operating revenue of the utilities must be determined for

17-16  the preceding calendar year. In the case of:

17-17  (a) Telephone utilities, except as otherwise provided in paragraph (c),

17-18  the revenue shall be deemed to be all intrastate revenues that are

17-19  considered by the commission for the purpose of establishing rates.

17-20  (b) Railroads, the revenue shall be deemed to be the revenue received

17-21  only from freight and passenger intrastate movements.

17-22  (c) All public utilities, the revenue does not include the proceeds of any

17-23  commodity, energy or service furnished to another public utility for resale.

17-24  Sec. 49. NRS 704.035 is hereby amended to read as follows:

17-25  704.035  1.  On or before June 1 of each year, the commission shall

17-26  mail revenue report forms to all public utilities under its jurisdiction, to the

17-27  address of those utilities on file with the commission. The revenue report

17-28  form serves as notice of the commission’s intent to assess the utilities, but

17-29  failure to notify any utility does not invalidate the assessment with respect

17-30  thereto.

17-31  2.  Each public utility subject to the provisions of NRS 704.033 shall

17-32  complete the revenue report referred to in subsection 1, compute the

17-33  assessment and return the completed revenue report to the commission

17-34  accompanied by payment of the assessment and any penalty due, pursuant

17-35  to the provisions of subsection 5.

17-36  3.  The assessment is due on July 1 of each year, but may, at the option

17-37  of the public utility, be paid quarterly on July 1, October 1, January 1 and

17-38  April 1.

17-39  4.  The assessment computed by the utility is subject to review and

17-40  audit by the commission, and the amount of the assessment may be

17-41  adjusted by the commission as a result of the audit and review.

17-42  5.  Any public utility failing to pay the assessment provided for in NRS

17-43  704.033 on or before August 1, or if paying quarterly, on or before

17-44  August 1, October 1, January 1 or April 1, shall pay, in addition to such

17-45  assessment, a penalty of 1 percent of the total unpaid balance for each

17-46  month or portion thereof that the assessment is delinquent, or $10,

17-47  whichever is greater, but no penalty may exceed $1,000 for each

17-48  delinquent payment.

18-1  6.  When a public utility sells, transfers or conveys substantially all of

18-2  its assets or certificate of public convenience and necessity, the

18-3  commission shall determine, levy and collect the accrued assessment for

18-4  the current year not later than 30 days after the sale, transfer or

18-5  conveyance, unless the transferee has assumed liability for the assessment.

18-6  For purposes of this subsection the jurisdiction of the commission over the

18-7  selling, transferring or conveying public utility continues until it has paid

18-8  the assessment.

18-9  7.  The commission may bring an appropriate action in its own name

18-10  for the collection of any assessment and penalty which is not paid as

18-11  provided in this section.

18-12  8.  The commission shall, on a quarterly basis, transfer to the account

18-13  for the consumer’s advocate [of the bureau of consumer protection in the

18-14  office of the attorney general] that portion of the assessments collected

18-15  which belongs to the consumer’s advocate.

18-16  Sec. 50. NRS 704.070 is hereby amended to read as follows:

18-17  704.070  Unless exempt under the provisions of NRS 704.075 ,

18-18  704.095 or 704.097:

18-19  1.  [Every] Each public utility shall file with the commission, within a

18-20  time to be fixed by the commission, a copy of all schedules [which] that

18-21  are currently in force for the public utility. Such schedules must be open

18-22  to public inspection . [, showing all rates, tolls and charges which it has

18-23  established and which are in force at the time for any service performed or

18-24  product furnished in connection therewith by any public utility controlled

18-25  and operated by it.

18-26  2.  All rules or regulations that in any manner affect the rates charged

18-27  or to be charged for any service or product must be filed with that

18-28  schedule.]

18-29  2.  A copy of each schedule that is currently in force for the public

18-30  utility, or so much of the schedule as the commission deems necessary

18-31  for inspection by the public, must be:

18-32  (a) Printed in plain type and posted in each office of the public utility

18-33  where payments are made to the public utility by its customers; and

18-34  (b) Open to inspection by the public and in such form and place as to

18-35  be readily accessible to and conveniently inspected by the public.

18-36  Sec. 51.  NRS 704.075 is hereby amended to read as follows:

18-37  704.075  1.  As used in this section, with respect to the sale of natural

18-38  gas:

18-39  (a) “Generating customer” means a customer who generates electricity

18-40  by burning natural gas.

18-41  (b) “Industrial customer” means a customer engaged primarily in

18-42  manufacturing or processing which changes raw or unfinished materials

18-43  into another form or creates another product.

18-44  (c) “Large commercial customer” means a customer whose

18-45  requirements equal or exceed [50 thousand] 50,000 cubic feet of natural

18-46  gas per day on any day and which is an institution, an agency of federal,

18-47  state or local government, or engaged primarily in renting out offices or

18-48  other commercial space, in providing lodging or in the sale of other goods

18-49  or services.

19-1  2.  The commission shall establish standards for the setting, increase or

19-2  decrease of rates [and charges] for natural gas to generating, industrial and

19-3  large commercial customers. These standards must authorize increases or

19-4  decreases on less than 30 days’ notice. Establishing different classes of

19-5  customers, and charging different rates to customers of the same class, for

19-6  these customers do not violate this chapter.

19-7  3.  The commission may, for sales to generating, industrial and large

19-8  commercial customers:

19-9  (a) Exempt the [filing of] rates for natural gas from those provisions of

19-10  NRS [704.080, 704.090,] 704.070, 704.100 and 704.110 [which it] that the

19-11  commission determines are not needed to protect the public interest.

19-12  (b) Authorize the establishment of different classes of customer or the

19-13  charging of different rates for customers of the same class, based on value

19-14  of the service and on the customer’s ability to change from one fuel to

19-15  another.

19-16  Sec. 52.  NRS 704.100 is hereby amended to read as follows:

19-17  704.100  Except as otherwise provided in NRS 704.075 or as may

19-18  otherwise be provided by the commission pursuant to NRS 704.095 [,

19-19  704.097 or 704.275:

19-20  1.  No changes may be made] or 704.097:

19-21  1.  A public utility shall not make changes in any schedule, [including

19-22  schedules of joint rates, or in the rules or regulations affecting any rates or

19-23  charges, except upon 30 days’ notice to the commission, and all changes

19-24  must be plainly indicated, or by filing new schedules in lieu thereof 30

19-25  days before the time the schedules are to take effect. The commission,

19-26  upon application of any public utility, may prescribe a shorter time within

19-27  which a reduction may be made.

19-28  2.  Copies] unless the public utility files with the commission an

19-29  application to make the proposed changes and the commission approves

19-30  the proposed changes pursuant to NRS 704.110.

19-31  2.  A public utility shall post copies of all proposed[,] schedules and

19-32  all new or amended schedules [must be filed and posted in the offices of

19-33  public utilities as required for original schedules.] in the same offices and

19-34  in substantially the same form, manner and places as required by NRS

19-35  704.070 for the posting of copies of schedules that are currently in force.

19-36  3.  A public utility may not set forth as justification for a rate increase

19-37  any items of expense or rate base [which] that previously have been

19-38  considered and disallowed by the commission, [only if] unless those items

19-39  are clearly identified in the application and new facts or considerations of

19-40  policy for each item are advanced in the application to justify a reversal of

19-41  the [commission’s] prior decision[.

19-42  4.  The commission shall determine whether a hearing must be held

19-43  when] of the commission.

19-44  4.  Except as otherwise provided in subsection 5, if the proposed

19-45  change in any schedule [stating a new or revised individual or joint rate,

19-46  fare or charge, or any new or revised individual or joint regulation or

19-47  practice affecting any rate, fare or charge,] will result in an increase in

19-48  annual gross operating revenue , as certified by the applicant [of $2,500 or

19-49  less.] , in an amount that does not exceed $2,500, the commission shall

20-1  determine whether it should dispense with a hearing regarding the

20-2  proposed change.

20-3  5.  If the applicant is a public utility furnishing telephone service and

20-4  the proposed change in any schedule will result in an increase in annual

20-5  gross operating revenue, as certified by the applicant, in an amount that

20-6  does not exceed $50,000 or 10 percent of the applicant’s annual gross

20-7  operating revenue, whichever is less, the commission shall determine

20-8  whether it should dispense with a hearing regarding the proposed

20-9  change.

20-10  6.  In making the determination pursuant to subsection 4 or 5, the

20-11  commission shall first consider all timely written protests, any presentation

20-12  that the regulatory operations staff of the commission may desire to

20-13  present, the application of the public utility and any other matters deemed

20-14  relevant by the commission.

20-15  Sec. 53. NRS 704.110 is hereby amended to read as follows:

20-16  704.110  Except as otherwise provided in NRS 704.075 or as may

20-17  otherwise be provided by the commission pursuant to NRS 704.095 or

20-18  704.097:

20-19  1.  [Whenever there is filed] If a public utility files with the

20-20  commission an application to make changes in any schedule [stating a

20-21  new or revised individual or joint rate or charge, or any new or revised

20-22  individual or joint regulation or practice affecting any rate or charge, or

20-23  any schedule resulting] , including, without limitation, changes that will

20-24  result in a discontinuance, modification or restriction of service, the

20-25  commission [may, upon complaint or upon its own motion without

20-26  complaint, at once, without answer or formal pleading by the interested

20-27  utility, investigate or, upon reasonable notice, conduct a hearing

20-28  concerning] shall investigate the propriety of the [rate, charge,

20-29  classification, regulation, discontinuance, modification, restriction or

20-30  practice.

20-31  2.  Pending the investigation or hearing and the decision thereon, the

20-32  commission, upon delivering to the utility affected thereby a statement in

20-33  writing of its reasons for the suspension, may suspend the operation of the

20-34  schedule and defer the use of the rate, charge, classification, regulation,

20-35  discontinuance, modification, restriction or practice. If the rate, charge,

20-36  classification, regulation, discontinuance, modification, restriction or

20-37  practice is part of:

20-38  (a) A filing made pursuant to subsection 7, the suspension must not be

20-39  effective for more than 90 days beyond the time when the rate, charge,

20-40  classification, regulation, discontinuance, modification, restriction or

20-41  practice would otherwise go into effect.

20-42  (b) Any other filing made pursuant to this section, the suspension must

20-43  not be effective for more than 150 days beyond the time when the rate,

20-44  charge, classification, regulation, discontinuance, modification, restriction

20-45  or practice would otherwise go into effect.

20-46  3.  Whenever there is filed] proposed changes to determine whether to

20-47  approve or disapprove the proposed changes. If an electric utility files

20-48  such an application and the application is a general rate application or

21-1  an application to clear its deferred accounts, the consumer’s advocate

21-2  shall be deemed a party of record.

21-3  2.  Except as otherwise provided in subsection 3, if a public utility

21-4  files with the commission an application to make changes in any

21-5  schedule, not later than 180 days after the date on which the application

21-6  is filed, the commission shall issue a written order approving or

21-7  disapproving, in whole or in part, the proposed changes.

21-8  3.  If a public utility files with the commission [any schedule stating an

21-9  increased individual or joint rate or charge for service or equipment,] a

21-10  general rate application, the public utility shall submit with its application

21-11  a statement showing the recorded results of revenues, expenses,

21-12  investments and costs of capital for its most recent 12 months for which

21-13  data were available when the application was prepared. [During any

21-14  hearing concerning the increased rates or charges determined by the

21-15  commission to be necessary,] In determining whether to approve or

21-16  disapprove any increased rates, the commission shall consider evidence in

21-17  support of the increased rates [or charges] based upon actual recorded

21-18  results of operations for the same 12 months, adjusted for increased

21-19  revenues, any increased investment in facilities, increased expenses for

21-20  depreciation, certain other operating expenses as approved by the

21-21  commission and changes in the costs of securities which are known and are

21-22  measurable with reasonable accuracy at the time of filing and which will

21-23  become effective within 6 months after the last month of those 12 months,

21-24  but [no new rates or charges may be placed] the public utility shall not

21-25  place into effect any increased rates until the changes have been

21-26  experienced and certified by the public utility to the commission [.] and

21-27  the commission has approved the increased rates. The commission shall

21-28  also consider evidence supporting expenses for depreciation, calculated on

21-29  an annual basis, applicable to major components of the public utility’s

21-30  plant placed into service during the recorded test period or the period for

21-31  certification as set forth in the application. Adjustments to revenues,

21-32  operating expenses and costs of securities must be calculated on an annual

21-33  basis. Within 90 days after the [filing with the commission of] date on

21-34  which the certification required [in] by this subsection [, or before the

21-35  expiration of any period of suspension ordered pursuant to subsection 2,] is

21-36  filed with the commission, or within 180 days after the date on which the

21-37  general rate application is filed with the commission, whichever time is

21-38  longer, the commission shall make such order in reference to [those rates

21-39  or charges] the increased rates as is required by this chapter. An electric

21-40  utility shall file a general rate application pursuant to this subsection at

21-41  least once every 24 months.

21-42  4.  [After full investigation or hearing, whether completed before or

21-43  after the date upon which the rate, charge, classification, regulation,

21-44  discontinuance, modification, restriction or practice is to go into effect, the

21-45  commission may make such order in reference to the rate, charge,

21-46  classification, regulation, discontinuance, modification, restriction or

21-47  practice as would be proper in a proceeding initiated after the rate, charge,

21-48  classification, regulation, discontinuance, modification, restriction or

21-49  practice has become effective.

22-1  5.  Except as otherwise provided in subsection 6, whenever] If a public

22-2  utility files with the commission an application to make changes in any

22-3  schedule and the commission does not issue a final written order

22-4  regarding the proposed changes within the time required by this section,

22-5  the proposed changes shall be deemed to be approved by the commission.

22-6  5.  If a public utility files with the commission a general rate

22-7  application [for an increased rate or charge for, or classification, regulation,

22-8  discontinuance, modification, restriction or practice involving service or

22-9  equipment has been filed with the commission, a] , the public utility shall

22-10  not [submit] file with the commission another general rate application until

22-11  all pending general rate applications [for increases in rates submitted] filed

22-12  by that public utility have been decided by the commission unless, after

22-13  application and hearing, the commission determines that a substantial

22-14  financial emergency would exist if the [other application] public utility is

22-15  not permitted to [be submitted] file another general rate application

22-16  sooner. The provisions of this subsection do not prohibit the public utility

22-17  from filing with the commission, while a general rate application is

22-18  pending, an application to recover the increased cost of purchased fuel,

22-19  purchased power, or natural gas purchased for resale pursuant to

22-20  subsection 6 or an application to clear its deferred accounts pursuant to

22-21  subsection 7, if the public utility is otherwise authorized by those

22-22  provisions to file such an application.

22-23  6.  A public utility may file an application to recover the increased cost

22-24  of purchased fuel, purchased power, or natural gas purchased for resale

22-25  once every 30 days. The provisions of this subsection do not apply to an

22-26  electric utility using deferred accounting pursuant to section 19 of [this

22-27  act.] Assembly Bill No. 369 of this session.

22-28  7.  Except as otherwise provided in subsection 8 [, whenever] and

22-29  subsection 4 of NRS 704.100, if an electric utility using deferred

22-30  accounting pursuant to section 19 of [this act] Assembly Bill No. 369 of

22-31  this session files an application to clear its deferred accounts and to change

22-32  one or more of its rates [or charges] based upon changes in the costs for

22-33  purchased fuel or purchased power, the commission, after a public hearing

22-34  and by an appropriate order:

22-35  (a) Shall allow the electric utility to clear its deferred accounts by

22-36  refunding any credit balance or recovering any debit balance over a period

22-37  not to exceed 3 years, as determined by the commission.

22-38  (b) Shall not allow the electric utility to recover any debit balance, or

22-39  portion thereof, in an amount that would result in a rate of return during the

22-40  period of recovery that exceeds the rate of return authorized by the

22-41  commission in the most recently completed rate proceeding for the electric

22-42  utility.

22-43  8.  Before allowing an electric utility to clear its deferred accounts

22-44  pursuant to subsection 7, the commission shall determine whether the costs

22-45  for purchased fuel and purchased power that the electric utility recorded in

22-46  its deferred accounts are recoverable and whether the revenues that the

22-47  electric utility collected from customers in this state for purchased fuel and

22-48  purchased power are properly recorded and credited in its deferred

22-49  accounts. The commission shall not allow the electric utility to recover any

23-1  costs for purchased fuel and purchased power that were the result of any

23-2  practice or transaction that was undertaken, managed or performed

23-3  imprudently by the electric utility.

23-4  9.  [Whenever] If an electric utility files an application to clear its

23-5  deferred accounts pursuant to subsection 7 while a general rate application

23-6  is pending, the electric utility shall:

23-7  (a) Submit with its application to clear its deferred accounts information

23-8  relating to the cost of service and rate design; and

23-9  (b) Supplement its general rate application with the same information, if

23-10  such information was not submitted with the general rate application.

23-11  10.  A utility facility identified in a 3-year plan submitted pursuant to

23-12  NRS 704.741 and accepted by the commission for acquisition or

23-13  construction pursuant to NRS 704.751 and the regulations adopted

23-14  pursuant thereto shall be deemed to be a prudent investment. The utility

23-15  may recover all just and reasonable costs of planning and constructing such

23-16  a facility.

23-17  11.  As used in this section, “electric utility” has the meaning ascribed

23-18  to it in section 19 of [this act.] Assembly Bill No. 369 of this session.

23-19  Sec. 54. NRS 704.329 is hereby amended to read as follows:

23-20  704.329  1.  Except as otherwise provided in [this section,] subsection

23-21  6, a person shall not merge with, directly acquire, indirectly acquire

23-22  through a subsidiary or affiliate, or otherwise directly or indirectly obtain

23-23  control of a public utility doing business in this state or an entity that holds

23-24  a controlling interest in such a public utility without first submitting to the

23-25  commission an application for authorization of the proposed [merger,

23-26  acquisition or other] transaction and obtaining authorization from the

23-27  commission.

23-28  2.  Any [merger, acquisition or other] transaction that violates the

23-29  provisions of this section is void and unenforceable and is not valid for any

23-30  purpose.

23-31  3. Before authorizing a proposed [merger, acquisition or other]

23-32  transaction pursuant to this section, the commission shall consider the

23-33  effect of the proposed [merger, acquisition or other] transaction on the

23-34  public interest and the customers in this state. The commission shall not

23-35  authorize the proposed [merger, acquisition or other] transaction unless the

23-36  commission finds that the proposed [merger, acquisition or other]

23-37  transaction:

23-38  (a) Will be in the public interest; and

23-39  (b) Complies with the provisions of sections 8 to 18, inclusive, of [this

23-40  act,] Assembly Bill No. 369 of this session, if the proposed [merger,

23-41  acquisition or other] transaction is subject to those provisions.

23-42  4.  The commission may base its authorization of the proposed [merger,

23-43  acquisition or other] transaction upon such terms, conditions or

23-44  modifications as the commission deems appropriate.

23-45  5.  If the commission does not issue a final order regarding the

23-46  proposed [merger, acquisition or other] transaction within 180 days after

23-47  the date on which an application or amended application for authorization

23-48  of the proposed [merger, acquisition or other] transaction was filed with the

23-49  commission, and the proposed [merger, acquisition or other] transaction is

24-1  not subject to the provisions of sections 8 to 18, inclusive, of [this act,]

24-2  Assembly Bill No. 369 of this session, the proposed [merger, acquisition or

24-3  other] transaction shall be deemed to be authorized by the commission.

24-4  6. The provisions of this section do not apply to [the]:

24-5  (a) The transfer of stock of a public utility doing business in this state or

24-6  to the transfer of the stock of an entity [holding]that holds a controlling

24-7  interest in such a public utility, if a transfer of not more than 25 percent of

24-8  the common stock of such a public utility or entity is proposed.

24-9  (b) A proposed transaction involving a public utility doing business in

24-10  this state providing telecommunication services or an entity that holds a

24-11  controlling interest in such a public utility if, in the most recently

24-12  completed calendar year, not more than 10 percent of the gross operating

24-13  revenue of the public utility or the entity that holds a controlling interest

24-14  in the public utility was derived from intrastate telecommunication

24-15  services provided to retail customers in this state by the public utility.

24-16  7.  As used in this section:

24-17  (a) “Person” means:

24-18     (1) A natural person;

24-19     (2) Any form of business or social organization and any other

24-20  nongovernmental legal entity, including, without limitation, a

24-21  corporation, partnership, association, trust or unincorporated

24-22  organization;

24-23     (3) A government or an agency or instrumentality of a government,

24-24  including, without limitation, this state or an agency or instrumentality

24-25  of this state; and

24-26     (4) A political subdivision of this state or of any other government

24-27  or an agency or instrumentality of a political subdivision of this state or

24-28  of any other government.

24-29  (b) “Transaction” means a merger, acquisition or change in control

24-30  described in subsection 1.

24-31  Sec. 55. NRS 704.68964 is hereby amended to read as follows:

24-32     704.68964  1.  An electing carrier may, pursuant to this section and in

24-33  accordance with NRS 704.68976, exercise flexibility in the pricing of:

24-34  (a) Competitive services and discretionary services. The commission

24-35  shall not specify a maximum rate for any competitive services or

24-36  discretionary services of the electing carrier. The electing carrier shall, with

24-37  regard to any competitive or discretionary service that it provides, set the

24-38  price of that service above the price floor of the service.

24-39  (b) A package of services, which may include basic network services,

24-40  competitive services, discretionary services and other essential services.

24-41  2.  Except as otherwise provided in this subsection, an electing carrier

24-42  may, upon 30-days’ notice to the commission in writing, exercise

24-43  flexibility in the pricing of its services pursuant to subsection 1 and is

24-44  exempt, with respect to the pricing of its services, from the provisions of

24-45  NRS 704.100 and 704.110 and the regulations of the commission relating

24-46  thereto. The notice must include a description in reasonable detail of:

24-47  (a) The characteristics of the services that will be subject to flexibility in

24-48  pricing;

24-49  (b) The terms and conditions applicable to the services;

25-1  (c) The nature of any limitations on the duration or geographical

25-2  availability of the services;

25-3  (d) The price or prices of the services or packages of services; and

25-4  (e) A certificate which provides that the electing carrier has prepared a

25-5  cost study of the price floor to support the price or prices for each service

25-6  and that, on and after the date on which the notice is filed with the

25-7  commission, any affected person may, upon request, inspect and copy the

25-8  cost study, subject to reasonable terms and conditions of any applicable

25-9  confidentiality and nondisclosure agreement relating to the

25-10  services.

25-11  The notice requirements of this subsection do not apply to an electing

25-12  carrier with respect to the pricing of competitive services or for packages

25-13  comprised exclusively of competitive services.

25-14  3.  The price for a package of services must not be lower than the lesser

25-15  of:

25-16  (a) The sum of the price floors for each of the services contained in the

25-17  package; or

25-18  (b) The sum of the prices of the basic network services, as set forth in

25-19  the tariffs of the electing carrier, and the price floors for each of the other

25-20  services contained in the package.

25-21  4.  The commission shall not specify a maximum rate for a package of

25-22  services.

25-23  5.  Each of the services included in a package pursuant to paragraph (b)

25-24  of subsection 1 must be made available on an individual basis.

25-25  Sec. 56. NRS 704.68972 is hereby amended to read as follows:

25-26     704.68972  1.  An electing carrier may introduce new services upon

25-27  30-days’ notice to the commission in writing. The notice must include a

25-28  description in reasonable detail of:

25-29  (a) The characteristics of each new service;

25-30  (b) The terms and conditions applicable to each new service;

25-31  (c) The nature of any limitations on the duration or geographical

25-32  availability of each new service;

25-33  (d) The price or prices of each new service; and

25-34  (e) A certificate that provides that the electing carrier has prepared a

25-35  cost study of the price floor to support the price or prices for each new

25-36  service and that, on and after the date on which the notice is filed with the

25-37  commission, any affected person may, upon request, inspect and copy the

25-38  cost study, subject to reasonable terms and conditions of any applicable

25-39  confidentiality and nondisclosure agreement.

25-40  2.  Each new service is subject to the conditions set forth in NRS

25-41  704.68964.

25-42  3.  Each new service is exempt from the provisions of NRS 704.100

25-43  and 704.110 and the regulations of the commission relating thereto.

25-44  4.  Unless otherwise classified by the commission as a competitive

25-45  service pursuant to its regulations, a new service must be classified as a

25-46  discretionary service for which the commission shall not specify a

25-47  maximum rate. The electing carrier shall set the price of the new service

25-48  above the price floor of the service.

26-1  5.  As used in this section, a “new service” means a telecommunication

26-2  service:

26-3  (a) That provides a function, feature or capability which is materially

26-4  different from any service or services previously offered by the carrier; or

26-5  (b) Combines two or more previously provided new services.

26-6  Sec. 57. NRS 704.743 is hereby amended to read as follows:

26-7  704.743  1.  A utility which supplies electricity in this state may apply

26-8  to the commission for authority to charge, as part of a program of optional

26-9  pricing, a higher rate for electricity that is generated from renewable

26-10  energy.

26-11  2.  The program may provide the customers of the utility with the

26-12  option of paying a higher rate for electricity to support the increased use by

26-13  the utility of renewable energy in the generation of electricity.

26-14  3.  As used in this section [:

26-15  (a) “Biomass” has the meaning ascribed to it in section 4 of this act.

26-16  (b) “Renewable energy” means a source of energy that occurs naturally

26-17  or is regenerated naturally, including, without limitation:

26-18     (1) Wind;

26-19     (2) Solar energy;

26-20     (3) Geothermal energy; and

26-21     (4) Biomass.

26-22  The term does not include coal, natural gas, oil, propane or any other fossil

26-23  fuel, or nuclear energy.] , “renewable energy” has the meaning ascribed

26-24  to it in section 7 of Senate Bill No. 372 of this session.

26-25  Sec. 58.  NRS 704.767 is hereby amended to read as follows:

26-26  704.767  As used in NRS [704.767] 704.766 to 704.775, inclusive,

26-27  unless the context otherwise requires, the words and terms defined in NRS

26-28  704.768 to 704.772, inclusive, and section 40 of this act have the

26-29  meanings ascribed to them in those sections.

26-30  Sec. 59.  NRS 704.771 is hereby amended to read as follows:

26-31  704.771  “Net metering system” means a facility or energy system for

26-32  the [production of electrical energy] generation of electricity that:

26-33  1.  Uses [wind or solar] renewable energy as its primary source of

26-34  [fuel;] energy to generate electricity;

26-35  2.  Has a generating capacity of not more than 10 kilowatts;

26-36  3.  Is located on the customer-generator’s premises;

26-37  4.  Operates in parallel with the utility’s transmission and distribution

26-38  facilities; and

26-39  5.  Is intended primarily to offset part or all of the customer-generator’s

26-40  requirements for electricity.

26-41  Sec. 60.  NRS 704.773 is hereby amended to read as follows:

26-42  704.773  1.  A utility shall offer net metering, as set forth in NRS

26-43  704.775, to the customer-generators operating within its service area .

26-44  [until 100 of those customer-generators have accepted the offer.]

26-45  2.  A utility:

26-46  (a) Shall offer to make available to each of its customer-generators who

26-47  has accepted its offer for net metering an energy meter that is capable of

26-48  registering the flow of electricity in two directions.

27-1  (b) May, at its own expense and with the written consent of the

27-2  customer-generator, install one or more additional meters to monitor the

27-3  flow of electricity in each direction.

27-4  (c) Shall not charge a customer-generator any fee or charge that would

27-5  increase the customer-generator’s minimum monthly charge to an amount

27-6  greater than that of other customers of the utility in the same rate class as

27-7  the customer-generator.

27-8  Sec. 61.  NRS 704.775 is hereby amended to read as follows:

27-9  704.775  1.  The billing period for net metering may be either a

27-10  monthly period or, with the written consent of the customer-generator, an

27-11  annual period.

27-12  2.  The net energy measurement must be calculated in the following

27-13  manner:

27-14  (a) The utility shall measure the net electricity produced or consumed

27-15  during the billing period, in accordance with normal metering practices.

27-16  (b) If the electricity supplied by the utility exceeds the electricity

27-17  generated by the customer-generator which is fed back to the utility during

27-18  the billing period, the customer-generator must be billed for the net

27-19  electricity supplied by the utility.

27-20  (c) If the electricity generated by the customer-generator which is fed

27-21  back to the utility exceeds the electricity supplied by the utility during the

27-22  billing period [, neither] :

27-23     (1) Neither the utility nor the customer-generator is entitled to

27-24  compensation for electricity provided to the other during the billing period

27-25  [.] ; and

27-26     (2) The excess electricity which is fed back to the utility shall be

27-27  deemed to be electricity that the utility generated or acquired from a

27-28  renewable energy system for the purposes of complying with its portfolio

27-29  standard pursuant to sections 3 to 12, inclusive, of Senate Bill No. 372 of

27-30  this session.

27-31  Sec. 62. NRS 228.360 is hereby amended to read as follows:

27-32  228.360  The consumer’s advocate:

27-33  1.  Shall intervene in and represent the public interest in [all] :

27-34  (a) All proceedings conducted pursuant to sections 8 to 18, inclusive, of

27-35  [this act.] Assembly Bill No. 369 of this session; and

27-36  (b) All proceedings conducted pursuant to NRS 704.070 to 704.110,

27-37  inclusive, and sections 41 to 46, inclusive, of this act in which an electric

27-38  utility has filed a general rate application or an application to clear its

27-39  deferred accounts.

27-40  2.  May, with respect to all public utilities except railroads and

27-41  cooperative utilities, and except as otherwise provided in NRS 228.380:

27-42  (a) Conduct or contract for studies, surveys, research or expert

27-43  testimony relating to matters affecting the public interest or the interests of

27-44  utility customers.

27-45  (b) Examine any books, accounts, minutes, records or other papers or

27-46  property of any public utility subject to the regulatory authority of the

27-47  public utilities commission of Nevada in the same manner and to the same

27-48  extent as authorized by law for members of the public utilities commission

27-49  of Nevada and its staff.

28-1  (c) Except as otherwise provided in subsection 1, petition for, request,

28-2  initiate, appear or intervene in any proceeding concerning rates, charges,

28-3  tariffs, modifications of service or any related matter before the public

28-4  utilities commission of Nevada or any court, regulatory body, board,

28-5  commission or agency having jurisdiction over any matter which the

28-6  consumer’s advocate may bring before or has brought before the public

28-7  utilities commission of Nevada or in which the public interest or the

28-8  interests of any particular class of utility customers are involved. The

28-9  consumer’s advocate may represent the public interest or the interests of

28-10  any particular class of utility customers in any such proceeding, and he is a

28-11  real party in interest in the proceeding.

28-12  3.  As used in this section, “electric utility” has the meaning ascribed

28-13  to it in section 19 of Assembly Bill No. 369 of this session.

28-14  Sec. 63. NRS 228.390 is hereby amended to read as follows:

28-15  228.390  Except as otherwise provided in NRS 704.110 and sections 8

28-16  to 18, inclusive, of [this act:] Assembly Bill No. 369 of this session:

28-17  1.  The consumer’s advocate has sole discretion to represent or refrain

28-18  from representing the public interest and any class of customers in any

28-19  proceeding.

28-20  2.  In exercising his discretion, the consumer’s advocate shall consider

28-21  the importance and extent of the public interest or the customers’ interests

28-22  involved and whether those interests would be adequately represented

28-23  without his participation.

28-24  3.  If the consumer’s advocate determines that there would be a conflict

28-25  between the public interest and any particular class of customers or any

28-26  inconsistent interests among the classes of customers involved in a

28-27  particular matter, he may choose to represent one of the interests, to

28-28  represent no interest, or to represent one interest through his office and

28-29  another or others through outside counsel engaged on a case basis.

28-30  Sec. 64.  Chapter 349 of NRS is hereby amended by adding thereto the

28-31  provisions set forth as sections 65 to 68, inclusive, of this act.

28-32  Sec. 65. “Biomass” means any organic matter that is available on a

28-33  renewable basis, including, without limitation:

28-34  1.  Agricultural crops and agricultural wastes and residues;

28-35  2.  Wood and wood wastes and residues;

28-36  3.  Animal wastes;

28-37  4.  Municipal wastes; and

28-38  5.  Aquatic plants.

28-39  Sec. 66.  “Fuel cell” means a device or contrivance that, through the

28-40  chemical process of combining ions of hydrogen and oxygen, produces

28-41  electricity and water.

28-42  Sec. 67. 1.  “Renewable energy” means a source of energy that

28-43  occurs naturally or is regenerated naturally, including, without

28-44  limitation:

28-45  (a) Biomass;

28-46  (b) Fuel cells;

28-47  (c) Geothermal energy;

28-48  (d) Solar energy;

28-49  (e) Waterpower; and

29-1  (f) Wind.

29-2  2.  The term does not include coal, natural gas, oil, propane or any

29-3  other fossil fuel, or nuclear energy.

29-4  Sec. 68.  1.  “Renewable energy generation project” means a project

29-5  involving an electric generating facility or system that uses renewable

29-6  energy as its primary source of energy to generate electricity.

29-7  2.  The term does not include a project involving an electric

29-8  generating facility or system that uses nuclear energy, in whole or in

29-9  part, to generate electricity.

29-10  Sec. 69.  NRS 349.400 is hereby amended to read as follows:

29-11  349.400  As used in NRS 349.400 to 349.670, inclusive, unless the

29-12  context otherwise requires, the words and terms defined in NRS 349.410 to

29-13  349.540, inclusive, and sections 65 to 68, inclusive, of this act have the

29-14  meanings ascribed to them in those sections.

29-15  Sec. 70.  NRS 349.430 is hereby amended to read as follows:

29-16  349.430  “Cost of a project” means all or a designated part of the cost

29-17  of any project, including any incidental cost pertaining to the project. The

29-18  cost of a project may include, among other costs, the costs of:

29-19  1.  Surveys, audits, preliminary plans, other plans, specifications,

29-20  estimates and other costs of preparations;

29-21  2.  Appraising, printing, estimating, advice, services of engineers,

29-22  architects, financial consultants, attorneys, clerical personnel and other

29-23  agents and employees;

29-24  3.  Publishing, posting, mailing and otherwise giving notice, filing or

29-25  recording instruments, taking options and fees to banks;

29-26  4.  Establishment of a reserve for contingencies;

29-27  5.  Interest on bonds for any time which does not exceed the estimated

29-28  period of construction plus 1 year, discounts on bonds, reserves for the

29-29  payment of the principal of and interest on bonds, replacement expenses

29-30  and other costs of issuing bonds;

29-31  6.  Amending any resolution or other instrument authorizing the

29-32  issuance of, or otherwise relating to, bonds for the project; and

29-33  7.  Short-term financing,

29-34  and the expense of operation and maintenance of the project.

29-35  Sec. 71.  NRS 349.510 is hereby amended to read as follows:

29-36  349.510  “Project” means:

29-37  1.  Any land, building or other improvement and all real and personal

29-38  properties necessary in connection therewith, excluding inventories, raw

29-39  materials and working capital, whether or not in existence, suitable for new

29-40  construction, improvement, rehabilitation or redevelopment for:

29-41  (a) Industrial uses, including assembling, fabricating, manufacturing,

29-42  processing or warehousing;

29-43  (b) Research and development relating to commerce or industry,

29-44  including professional, administrative and scientific offices and

29-45  laboratories;

29-46  (c) Commercial enterprises;

29-47  (d) Civic and cultural enterprises open to the general public, including

29-48  theaters, museums and exhibitions, together with buildings and other

29-49  structures, machinery, equipment, facilities and appurtenances thereto

30-1  which the director deems useful or desirable in connection with the

30-2  conduct of any such enterprise;

30-3  (e) An educational institution operated by a nonprofit organization not

30-4  otherwise directly funded by the state which is accredited by a nationally

30-5  recognized educational accrediting association;

30-6  (f) Health and care facilities and supplemental facilities for health and

30-7  care; [or]

30-8  (g) The purposes of a corporation for public benefit [.]; or

30-9  (h) A renewable energy generation project.

30-10  2.  Any real or personal property appropriate for addition to a hotel,

30-11  motel, apartment building, casino or office building to protect it or its

30-12  occupants from fire.

30-13  3.  The preservation of a historic structure or its restoration for its

30-14  original or another use, if the plan has been approved by the office of

30-15  historic preservation of the department of cultural affairs.

30-16  Sec. 72.  NRS 349.560 is hereby amended to read as follows:

30-17  349.560  It is the intent of the legislature to authorize the director to

30-18  finance, acquire, own, lease, improve and dispose of properties to:

30-19  1.  Promote industry and employment and develop trade by inducing

30-20  manufacturing, industrial, warehousing and commercial enterprises and

30-21  organizations for research and development to locate, remain or expand in

30-22  this state to further prosperity throughout the state and to further the use of

30-23  the agricultural products and the natural resources of this state.

30-24  2.  Enhance public safety by protecting hotels, motels, apartment

30-25  buildings, casinos, office buildings and their occupants from fire.

30-26  3.  Promote the public health by enabling the acquisition, development,

30-27  expansion and maintenance of health and care facilities and supplemental

30-28  facilities for health and care facilities which will provide services of high

30-29  quality at reasonable rates to the residents of the community in which the

30-30  facilities are situated.

30-31  4.  Promote the educational, cultural, economic and general welfare of

30-32  the public by financing civic and cultural enterprises, certain educational

30-33  institutions and the preservation or restoration of historic structures.

30-34  5.  Promote the social welfare of the residents of this state by enabling

30-35  a corporation for public benefit to acquire, develop, expand and maintain

30-36  facilities that provide services for those residents.

30-37  6.  Promote the generation of electricity in this state.

30-38  Sec. 73.  NRS 349.565 is hereby amended to read as follows:

30-39  349.565  1.  The director may not, under NRS 349.400 to 349.670,

30-40  inclusive:

30-41  (a) Operate any manufacturing, industrial, warehousing or commercial

30-42  enterprise or an organization for research and development or any health

30-43  and care facility to which he provided assistance; or

30-44  (b) Except as otherwise provided in subsection 2, assist any

30-45  manufacturing, industrial, warehousing or commercial enterprise or an

30-46  organization for research and development to locate in a county or city

30-47  which would result in the abandonment or closure of an existing facility of

30-48  a like nature located within that county or city, unless the existing facility

30-49  is operated by the contemplated lessee, purchaser or other obligor or an

31-1  affiliate of such a person and the facility is to be abandoned or closed

31-2  because of obsolescence, lack of available labor or limitations at the site of

31-3  the facility.

31-4  2.  The provisions of paragraph (b) of subsection 1 do not apply to:

31-5  (a) Health and care facilities and supplemental facilities for a health and

31-6  care facility;

31-7  (b) Civic and cultural enterprises open to the general public;

31-8  (c) Enterprises located in a redevelopment area created pursuant to NRS

31-9  279.382 to 279.685, inclusive;

31-10  (d) Enterprises located in an area designated as an empowerment zone

31-11  pursuant to sections 1391 to 1397, inclusive, of the Internal Revenue Code

31-12  of 1986, 26 U.S.C. §§ 1391-97, future amendments to those sections and

31-13  the corresponding provisions of future internal revenue laws;

31-14  (e) Facilities established by a corporation for public benefit; [and]

31-15  (f) Enterprises whose products are substantially sold, used or distributed

31-16  outside this state [.]; and

31-17  (g) Renewable energy generation projects.

31-18  Sec. 74.  NRS 349.580 is hereby amended to read as follows:

31-19  349.580  Except as otherwise provided in NRS 349.595 and 349.640,

31-20  the director shall not finance a project unless, before financing:

31-21  1.  The director finds that:

31-22  (a) The project to be financed has been approved for financing pursuant

31-23  to the requirements of NRS 244A.669 to 244A.763, inclusive, or 268.512

31-24  to 268.568, inclusive; and

31-25  (b) There has been a request by a city or county to have the director

31-26  issue bonds to finance the project; or

31-27  2.  The director finds and both the board and the governing body of the

31-28  city or county where the project is to be located approve the findings of the

31-29  director that:

31-30  (a) The project consists of any land, building or other improvement and

31-31  all real and personal properties necessary in connection therewith,

31-32  excluding inventories, raw materials and working capital, whether or not in

31-33  existence, which is suitable for new construction, improvement,

31-34  preservation, restoration, rehabilitation or redevelopment:

31-35     (1) For manufacturing, industrial, warehousing, civic, cultural or

31-36  other commercial enterprises, educational institutions, corporations for

31-37  public benefit or organizations for research and development;

31-38     (2) For a health and care facility or a supplemental facility for a

31-39  health and care facility;

31-40     (3) Of real or personal property appropriate for addition to a hotel,

31-41  motel, apartment building, casino or office building to protect it or its

31-42  occupants from fire; [or]

31-43     (4) Of a historic structure; or

31-44     (5) For a renewable energy generation project;

31-45  (b) The project will provide a public benefit;

31-46  (c) The contemplated lessee, purchaser or other obligor has sufficient

31-47  financial resources to place the project in operation and to continue its

31-48  operation, meeting the obligations of the lease, purchase contract or

31-49  financing agreement;

32-1  (d) There are sufficient safeguards to assure that all money provided by

32-2  the department will be expended solely for the purposes of the project;

32-3  (e) The project would be compatible with existing facilities in the area

32-4  adjacent to the location of the project;

32-5  (f) The project [is]:

32-6      (1) Is compatible with the plan of the state for economic

32-7  diversification and development or for the marketing and development of

32-8  tourism in this state; or

32-9      (2) Promotes the generation of electricity in this state;

32-10  (g) Through the advice of counsel or other reliable source, the project

32-11  has received all approvals by the local, state and federal governments

32-12  which may be necessary to proceed with construction, improvement,

32-13  rehabilitation or redevelopment of the project; and

32-14  (h) There has been a request by a city, county, lessee, purchaser, other

32-15  obligor or other enterprise to have the director issue revenue bonds for

32-16  industrial development to finance the project.

32-17  Sec. 75.  Chapter 523 of NRS is hereby amended by adding thereto the

32-18  provisions set forth as sections 76 to 87, inclusive, of this act.

32-19  Sec. 76. “Biomass” means any organic matter that is available on a

32-20  renewable basis, including, without limitation:

32-21  1.  Agricultural crops and agricultural wastes and residues;

32-22  2.  Wood and wood wastes and residues;

32-23  3.  Animal wastes;

32-24  4.  Municipal wastes; and

32-25  5.  Aquatic plants.

32-26  Sec. 77. “Consumer’s advocate” means the consumer’s advocate of

32-27  the bureau of consumer protection in the office of the attorney general.

32-28  Sec. 78. “Director” means the director of the office of energy

32-29  appointed pursuant to section 87 of this act.

32-30  Sec. 79.  “Fuel cell” means a device or contrivance that, through the

32-31  chemical process of combining ions of hydrogen and oxygen, produces

32-32  electricity and water.

32-33     Sec. 80.  1.  “Renewable energy” means a source of energy that

32-34  occurs naturally or is regenerated naturally, including, without

32-35  limitation:

32-36  (a) Biomass;

32-37  (b) Fuel cells;

32-38  (c) Geothermal energy;

32-39  (d) Solar energy;

32-40  (e) Waterpower; and

32-41  (f) Wind.

32-42  2.  The term does not include coal, natural gas, oil, propane or any

32-43  other fossil fuel, or nuclear energy.

32-44  Sec. 81.  1.  “Renewable energy generation project” means a project

32-45  involving an electric generating facility or system that uses renewable

32-46  energy as its primary source of energy to generate electricity.

32-47  2.  The term does not include a project involving an electric

32-48  generating facility or system that uses nuclear energy, in whole or in

32-49  part, to generate electricity.

33-1  Sec. 82.  “Task force” means the task force for renewable energy

33-2  and energy conservation created by section 84 of this act.

33-3  Sec. 83.  1.  The trust fund for renewable energy and energy

33-4  conservation is hereby created in the state treasury.

33-5  2.  The task force shall administer the fund. As administrator of the

33-6  fund, the task force:

33-7  (a) Shall maintain the financial records of the fund;

33-8  (b) Shall invest the money in the fund as the money in other state

33-9  funds is invested;

33-10  (c) Shall manage any account associated with the fund;

33-11  (d) Shall maintain any instruments that evidence investments made

33-12  with the money in the fund;

33-13  (e) May contract with vendors for any good or service that is

33-14  necessary to carry out the provisions of this section; and

33-15  (f) May perform any other duties that are necessary to administer the

33-16  fund.

33-17  3.  The interest and income earned on the money in the fund must,

33-18  after deducting any applicable charges, be credited to the fund. All

33-19  claims against the fund must be paid as other claims against the state are

33-20  paid.

33-21  4.  Not more than 2 percent of the money in the fund may be used to

33-22  pay the costs of administering the fund.

33-23  5.  The money in the fund remains in the fund and does not revert to

33-24  the state general fund at the end of any fiscal year.

33-25  6.  All money that is deposited or paid into the fund may only be

33-26  expended pursuant to an allocation made by the task force. Money

33-27  expended from the fund must not be used to supplant existing methods of

33-28  funding that are available to public agencies.

33-29  Sec. 84. 1.  The task force for renewable energy and energy

33-30  conservation is hereby created. The task force consists of nine members

33-31  who are appointed as follows:

33-32  (a) Two members appointed by the majority leader of the senate, one

33-33  of whom represents the interests of the renewable energy industry in this

33-34  state with respect to biomass and the other of whom represents the

33-35  interests of the mining industry in this state.

33-36  (b) Two members appointed by the speaker of the assembly, one of

33-37  whom represents the interests of the renewable energy industry in this

33-38  state with respect to geothermal energy and the other of whom represents

33-39  the interests of a nonprofit organization dedicated to the protection of the

33-40  environment or to the conservation of energy or the efficient use of

33-41  energy.

33-42  (c) One member appointed by the minority leader of the senate to

33-43  represent the interests of the renewable energy industry in this state with

33-44  respect to solar energy.

33-45  (d) One member appointed by the minority leader of the assembly to

33-46  represent the interests of the public utilities in this state.

33-47  (e) Two members appointed by the governor, one of whom represents

33-48  the interests of the renewable energy industry in this state with respect to

34-1  wind and the other of whom represents the interests of the gaming

34-2  industry in this state.

34-3  (f) One member appointed by the consumer’s advocate to represent

34-4  the interests of the consumers in this state.

34-5  2.  A member of the task force:

34-6  (a) Must be a citizen of the United States and a resident of this state.

34-7  (b) Must have training, education, experience or knowledge

34-8  concerning:

34-9      (1) The development or use of renewable energy;

34-10     (2) Financing, planning or constructing renewable energy

34-11  generation projects;

34-12     (3) Measures which conserve or reduce the demand for energy or

34-13  which result in more efficient use of energy;

34-14     (4) Weatherization;

34-15     (5) Building and energy codes and standards;

34-16     (6) Grants or incentives concerning energy;

34-17     (7) Public education or community relations; or

34-18     (8) Any other matter within the duties of the task force.

34-19  (c) Must not be an officer or employee of the legislative or judicial

34-20  department of state government.

34-21  3.  After the initial terms, the term of each member of the task force is

34-22  3 years. A vacancy on the task force must be filled for the remainder of

34-23  the unexpired term in the same manner as the original appointment. A

34-24  member may be reappointed to the task force.

34-25  4.  A member of the task force who is an officer or employee of this

34-26  state or a political subdivision of this state must be relieved from his

34-27  duties without loss of his regular compensation so that he may prepare

34-28  for and attend meetings of the task force and perform any work that is

34-29  necessary to carry out the duties of the task force in the most timely

34-30  manner practicable. A state agency or political subdivision of this state

34-31  shall not require an officer or employee who is a member of the task

34-32  force to:

34-33  (a) Make up the time he is absent from work to carry out his duties as

34-34  a member of the task force; or

34-35  (b) Take annual leave or compensatory time for the absence.

34-36  Sec. 85. 1.  The members of the task force shall select a chairman

34-37  and vice chairman from among their membership. The vice chairman

34-38  shall perform the duties of the chairman during any absence of the

34-39  chairman.

34-40  2.  The chairman and vice chairman serve in those positions for

34-41  terms of 1 year. If a vacancy occurs in the chairmanship or vice

34-42  chairmanship, the vacancy must be filled for the remainder of the

34-43  unexpired term in the same manner as the original selection.

34-44  3.  A majority of the members of the task force constitutes a quorum.

34-45  A majority of the members present during a quorum may exercise all the

34-46  power and authority conferred on the task force.

34-47  4.  The task force shall meet at least four times annually or more

34-48  frequently at the discretion of the chairman.

35-1  5.  Except as otherwise provided in this subsection, the members of

35-2  the task force serve without compensation and are not entitled to the per

35-3  diem and travel expenses provided for state officers and employees

35-4  generally. For each day of attendance at a meeting of the task force and

35-5  while engaged in the business of the task force, a member of the task

35-6  force who:

35-7  (a) Is an officer or employee of this state or a political subdivision of

35-8  this state is entitled to receive the per diem and travel expenses provided

35-9  for state officers and employees generally, paid by his governmental

35-10  employer.

35-11  (b) Represents the interests of a nonprofit organization is entitled to

35-12  receive the per diem and travel expenses provided for state officers and

35-13  employees generally, paid from the trust fund for renewable energy and

35-14  energy conservation.

35-15  6.  The consumer’s advocate shall provide the task force with

35-16  administrative and clerical support and with such other assistance as

35-17  may be necessary for the task force to carry out its duties. Such support

35-18  and assistance must include, without limitation, making arrangements

35-19  for facilities, equipment and other services in preparation for and during

35-20  meetings.

35-21  Sec. 86. 1.  The task force shall:

35-22  (a) Advise the office of energy in the development and periodic review

35-23  of the comprehensive energy plan with regard to the use of renewable

35-24  energy and the use of measures which conserve or reduce the demand

35-25  for energy or which result in more efficient use of energy.

35-26  (b) Coordinate its activities and programs with the activities and

35-27  programs of the office of energy, the consumer’s advocate and the public

35-28  utilities commission of Nevada and other federal, state and local officers

35-29  and agencies that promote, fund, administer or operate activities and

35-30  programs related to the use of renewable energy and the use of measures

35-31  which conserve or reduce the demand for energy or which result in more

35-32  efficient use of energy.

35-33  (c) Spend the money in the trust fund for renewable energy and

35-34  energy conservation to:

35-35     (1) Educate persons and entities concerning renewable energy and

35-36  measures which conserve or reduce the demand for energy or which

35-37  result in more efficient use of energy.

35-38     (2) Create incentives for investment in and the use of renewable

35-39  energy and measures which conserve or reduce the demand for energy or

35-40  which result in more efficient use of energy.

35-41     (3) Distribute grants and other money to establish programs and

35-42  projects which incorporate the use of renewable energy and measures

35-43  which conserve or reduce the demand for energy or which result in more

35-44  efficient use of energy.

35-45     (4) Conduct feasibility studies, including, without limitation, a

35-46  feasibility study concerning the establishment of an incentive fund,

35-47  grants or other programs to enable or assist residential, small

35-48  commercial and agricultural customers to reduce the cost of purchasing

36-1  on-site generation systems, net metering systems and distributed

36-2  generation systems that use renewable energy.

36-3  (d) Take any other actions that the task force deems necessary to carry

36-4  out its duties, including, without limitation, contracting with consultants,

36-5  if necessary, for the purposes of program design or to assist the task

36-6  force in carrying out its duties.

36-7  2.  The task force shall prepare an annual report concerning its

36-8  activities and programs and submit the report to the legislative

36-9  commission and the governor on or before January 30 of each year. The

36-10  annual report must include, without limitation:

36-11  (a) A description of the objectives of each activity and program;

36-12  (b) An analysis of the effectiveness and efficiency of each activity and

36-13  program in meeting the objectives of the activity or program;

36-14  (c) The amount of money distributed for each activity and program

36-15  from the trust fund for renewable energy and energy conservation and a

36-16  detailed description of the use of that money for each activity and

36-17  program;

36-18  (d) An analysis of the coordination between the task force and other

36-19  officers and agencies; and

36-20  (e) Any changes planned for each activity and program.

36-21  3.  As used in this section:

36-22  (a) “Distributed generation system” means a facility or system for the

36-23  generation of electricity that is in close proximity to the place where the

36-24  electricity is consumed.

36-25  (b) “Net metering system” has the meaning ascribed to it in NRS

36-26  704.771.

36-27  Sec. 87.  1.  The office of energy is hereby created within the office

36-28  of the governor.

36-29  2.  The governor shall appoint the director. The director:

36-30  (a) Is in the unclassified service of the state; and

36-31  (b) Serves at the pleasure of the governor.

36-32  3.  The director may, within the limits of available money, employ:

36-33  (a) Such persons in the unclassified service of the state as the director

36-34  determines to be necessary to carry out the duties of the office of energy

36-35  pursuant to this chapter; and

36-36  (b) Such additional personnel as may be required to carry out the

36-37  duties of the office of energy pursuant to this chapter, who must be in the

36-38  classified service of the state.

36-39  4.  A person employed by the director pursuant to this section must be

36-40  qualified by training and experience to perform the duties for which the

36-41  director employs him.

36-42  5.  The director and the persons employed by the director shall not

36-43  have any conflict of interest relating to the performance of their duties

36-44  pursuant to this chapter.

36-45  6.  The provisions of NRS 223.085 do not apply to the director or to

36-46  any person employed by the director pursuant to this section.

 

 

 

37-1  Sec. 88.  NRS 523.011 is hereby amended to read as follows:

37-2  523.011  1.  The legislature finds that:

37-3  (a) Energy is essential to the economy of the state and to the health,

37-4  safety and welfare of the people of the state.

37-5  (b) The state has a responsibility to encourage the maintenance of a

37-6  reliable and economical supply of energy at a level which is consistent with

37-7  the protection of environmental quality.

37-8  (c) The state has a responsibility to encourage the utilization of a wide

37-9  range of measures which reduce wasteful uses of energy resources.

37-10  (d) Planning for energy conservation and future energy requirements

37-11  should include consideration of state, regional and local plans for land use,

37-12  urban expansion, transportation systems, environmental protection and

37-13  economic development.

37-14  (e) Government and private enterprise need to accelerate research and

37-15  development of [alternative] sources of renewable energy and to improve

37-16  technology related to the research and development of existing sources of

37-17  energy.

37-18  (f) While government and private enterprise are seeking to accelerate

37-19  research and development of [alternative] sources of renewable energy,

37-20  they must also prepare for and respond to the advent of competition within

37-21  the electrical energy industry and are, therefore, encouraged to maximize

37-22  the use of indigenous energy resources to the extent competitively and

37-23  economically feasible.

37-24  (g) Prevention of delays and interruptions in providing energy,

37-25  protecting environmental values and conserving energy require expanded

37-26  authority and capability within state government.

37-27  2.  It is the policy of this state to encourage participation with all levels

37-28  of government and private enterprise in cooperative state, regional and

37-29  national programs to assure adequate supplies of energy resources and

37-30  markets for such energy resources.

37-31  3.  It is the policy of this state to assign the responsibility for managing

37-32  and conserving energy and its sources to agencies whose other programs

37-33  are similar, to avoid duplication of effort in developing policies and

37-34  programs for energy.

37-35  Sec. 89.  NRS 523.021 is hereby amended to read as follows:

37-36  523.021  As used in this chapter, unless the context otherwise requires

37-37  [:

37-38  1.  “Department” means the department of business and industry.

37-39  2.  “Director” means the director of the department.] , the words and

37-40  terms defined in sections 76 to 82, inclusive, of this act have the

37-41  meanings ascribed to them in those sections.

37-42  Sec. 90.  NRS 523.051 is hereby amended to read as follows:

37-43  523.051  The director may:

37-44  1.  Administer any gifts or grants which the department is authorized to

37-45  accept for the purposes of this chapter.

37-46  2.  Expend money received from those gifts or grants or from

37-47  legislative appropriations to contract with qualified persons or institutions

37-48  for research in the production and efficient use of energy resources.

38-1  3.  Enter into any cooperative agreement with any federal or state

38-2  agency or political subdivision.

38-3  4.  Participate in any program established by the Federal Government

38-4  relating to sources of energy and adopt regulations appropriate to that

38-5  program.

38-6  5.  Assist developers of renewable energy generation projects in

38-7  preparing and making requests to obtain money for development through

38-8  the issuance industrial development revenue bonds pursuant to NRS

38-9  349.400 to 349.670, inclusive and sections 65 to 68, inclusive, of this act.

38-10  6.  Adopt any regulations that the director determines are necessary

38-11  to carry out the duties of the office of energy pursuant to this chapter.

38-12  Sec. 91.  NRS 523.131 is hereby amended to read as follows:

38-13  523.131  The director shall:

38-14  1.  Acquire and analyze information relating to energy and to the

38-15  supply, demand and conservation of its sources.

38-16  2.  Utilize all available public and private means to provide information

38-17  to the public about problems relating to energy and to explain how

38-18  conservation of energy and its sources may be accomplished.

38-19  3.  Review and evaluate information which identifies trends and

38-20  permits forecasting of the energy available to the state. Such forecasts must

38-21  include estimates on:

38-22  (a) The level of demand for energy in the state for 5-, 10- and 20-year

38-23  periods;

38-24  (b) The amount of energy available to meet each level of demand;

38-25  (c) The probable implications of the forecast on the demand and supply

38-26  of energy; and

38-27  (d) The sources of renewable energy and other alternative sources of

38-28  energy which are available and their possible effects.

38-29  4.  Study means of reducing wasteful, inefficient, unnecessary or

38-30  uneconomical uses of energy and encourage the maximum utilization of

38-31  existing sources of energy in the state.

38-32  5.  Encourage the development of [any existing and alternative] :

38-33  (a) Any sources of renewable energy and any other energy projects

38-34  which will benefit the state [.] ; and

38-35  (b) Any measures which conserve or reduce the demand for energy or

38-36  which result in more efficient use of energy.

38-37  6.  In conjunction with the desert research institute, review policies

38-38  relating to the research and development of the state’s geothermal

38-39  resources and make recommendations to the appropriate state and federal

38-40  agencies for establishing methods of developing the geothermal resources

38-41  within the state.

38-42  7.  Solicit and serve as the point of contact for grants and other

38-43  money from the Federal Government and other sources to promote:

38-44  (a) Energy projects that enhance the economic development of the

38-45  state;

38-46  (b) The use of renewable energy; and

38-47  (c) The use of measures which conserve or reduce the demand for

38-48  energy or which result in more efficient use of energy.

39-1  8.  Coordinate the activities and programs of the office of energy with

39-2  the activities and programs of the task force, the consumer’s advocate

39-3  and the public utilities commission of Nevada and other federal, state

39-4  and local officers and agencies that promote, fund, administer or operate

39-5  activities and programs related to the use of renewable energy and the

39-6  use of measures which conserve or reduce the demand for energy or

39-7  which result in more efficient use of energy.

39-8  9.  Carry out all other directives concerning energy that are

39-9  prescribed by the governor.

39-10  Sec. 92. NRS 523.141 is hereby amended to read as follows:

39-11  523.141  1.  The director shall prepare a comprehensive state energy

39-12  [conservation] plan which provides [methods for conserving and improving

39-13  efficiency in the use of energy resources and establishes procedures for

39-14  reducing the rate of growth of energy demand and minimizing the adverse

39-15  social, economic, political and environmental effects of increasing energy

39-16  resource consumption.

39-17  2.  The plan must be presented to the governor, and upon approval by

39-18  the governor, may be submitted by him in compliance with any program

39-19  established by the Federal Government.] for the promotion of:

39-20  (a) Energy projects that enhance the economic development of the

39-21  state;

39-22  (b) The use of renewable energy; and

39-23  (c) The use of measures which conserve or reduce the demand for

39-24  energy or which result in more efficient use of energy.

39-25  2.  The comprehensive state energy plan must include provisions for:

39-26  (a) The assessment of the potential benefits of proposed energy

39-27  projects on the economic development of the state.

39-28  (b) The education of persons and entities concerning renewable

39-29  energy and measures which conserve or reduce the demand for energy or

39-30  which result in more efficient use of energy.

39-31  (c) The creation of incentives for investment in and the use of

39-32  renewable energy and measures which conserve or reduce the demand

39-33  for energy or which result in more efficient use of energy.

39-34  (d) Grants and other money to establish programs and conduct

39-35  activities which promote:

39-36     (1) Energy projects that enhance the economic development of the

39-37  state;

39-38     (2) The use of renewable energy; and

39-39     (3) The use of measures which conserve or reduce the demand for

39-40  energy or which result in more efficient use of energy.

39-41  (e) The development or incorporation by reference of model and

39-42  uniform building and energy codes and standards which are written in

39-43  language which is easy to understand and which include performance

39-44  standards for conservation of energy and efficient use of energy.

39-45  (f) Oversight and accountability with respect to all programs and

39-46  activities described in this subsection.

39-47  (g) Any other matter that the task force determines to be relevant to

39-48  the issues of energy resources, energy use, energy conservation and

39-49  energy efficiency.

40-1  Sec. 93. NRS 523.161 is hereby amended to read as follows:

40-2  523.161  1.  [Except for those energy resources for whose priorities of

40-3  use are established by the public utilities commission of Nevada, the] The

40-4  director may recommend to state agencies, local governments and

40-5  appropriate private persons and entities, standards for conservation of

40-6  energy and its sources and for carrying out the state comprehensive energy

40-7  plan . [for the conservation of energy.]

40-8  2.  In recommending such standards , the director shall consider the

40-9  usage of energy and its sources in the state and the methods available for

40-10  conservation of those sources.

40-11  Sec. 94. NRS 523.164 is hereby amended to read as follows:

40-12  523.164  1.  The director shall adopt regulations for the conservation

40-13  of energy in buildings, including manufactured homes, which establish the

40-14  minimum standards for:

40-15  (a) The construction of floors, walls, ceilings and roofs;

40-16  (b) The equipment and systems for heating, ventilation and air-

40-17  conditioning;

40-18  (c) Electrical equipment and systems;

40-19  (d) Insulation; and

40-20  (e) Other factors which affect the use of energy in a building.

40-21  2.  The director may exempt a building from a standard if he

40-22  determines that application of the standard to the building would not

40-23  accomplish the purpose of the regulations.

40-24  3.  The regulations must authorize allowances in design and

40-25  construction for [solar, wind or any other renewable source] sources of

40-26  renewable energy used to supply all or a part of the energy required in a

40-27  building.

40-28  4.  The standards adopted by the director are the minimum standards

40-29  for the conservation of energy which apply only to areas in which the

40-30  governing body of the local government has not adopted standards for the

40-31  conservation of energy in buildings. Such governing bodies shall assist the

40-32  director in the enforcement of the regulations adopted pursuant to this

40-33  section.

40-34  5.  The director shall solicit comments regarding the adoption of

40-35  regulations pursuant to this section from:

40-36  (a) Persons in the business of constructing and selling homes;

40-37  (b) Contractors;

40-38  (c) Public utilities;

40-39  (d) Local building inspectors; and

40-40  (e) The general public,

40-41  before adopting any regulations. The director must conduct at least three

40-42  hearings in different locations in the state, after giving 30 days’ notice of

40-43  each hearing, before he may adopt any regulations pursuant to this section.

40-44  Sec. 95. NRS 651.040 is hereby amended to read as follows:

40-45  651.040  1.  As used in this section, unless the context otherwise

40-46  requires:

40-47  (a) “Establishment” means any hotel, motel, inn or motor court.

40-48  (b) “Owner” or “keeper” means any person, firm, association or

40-49  corporation.

41-1  (c) “Rates” means the total charge levied at the establishment for rooms

41-2  or accommodations.

41-3  2.  The rates listed on the printed statement required to be maintained

41-4  by an owner or keeper of an establishment pursuant to NRS 651.030 must

41-5  include [the] :

41-6  (a) The daily rate of the room for occupancy by one person [,] and for

41-7  occupancy by two persons [, the] ;

41-8  (b) The additional charge, if any, for occupancy by each additional

41-9  person over two persons [and the] ;

41-10  (c) The additional charge, if any, for each additional bed provided in the

41-11  room [.] ; and

41-12  (d) The additional charge, if any, to offset energy costs incurred by the

41-13  establishment.

41-14  3.  Every establishment shall maintain a registration card for each room

41-15  and supply the person or persons registering for accommodations a receipt.

41-16  Both the registration card and the receipt must reflect the type of

41-17  accommodations supplied, the number of persons occupying the

41-18  accommodation and the rate charged each person therefor. An

41-19  establishment shall not charge more than the rates listed on the printed

41-20  statement required to be maintained by an owner or keeper of an

41-21  establishment pursuant to NRS 651.030

41-22  [3.] 4. For any violation of this section, or any provision herein

41-23  contained, the offender shall forfeit to the injured party 3 times the amount

41-24  of the sum charged in excess of what he is entitled to charge.

41-25  [4.] 5. Any owner or keeper of any establishment who violates any of

41-26  the provisions of this section is guilty of a misdemeanor.

41-27  Sec. 96. Section 1 of Assembly Bill No. 197 of this session is hereby

41-28  amended to read as follows:

41-29     Section 1.  Chapter 704 of NRS is hereby amended by adding

41-30  thereto a new section to read as follows:

41-31  1.  On and after October 1, 2001, each electric utility shall

41-32  disclose to its retail customers information about electric services,

41-33  and any products and services relating thereto, that are being

41-34  provided to or purchased for those retail customers by the electric

41-35  utility. The disclosure must:

41-36  (a) Be in a standard, uniform format established by the

41-37  commission by regulation;

41-38  (b) Be included:

41-39     (1) At least two times each calendar year, as an insert in the

41-40  bills that the electric utility sends to its retail customers; and

41-41     (2) If the electric utility maintains a website on the Internet or

41-42  any successor to the Internet, on that website; and

41-43  (c) Include adequate information so that a retail customer can

41-44  readily evaluate his options for obtaining electric services or any

41-45  products or services relating thereto.

41-46  2.  A disclosure required by this section must include, if

41-47  applicable:

41-48  (a) The average mix of energy sources used to generate the

41-49  electricity sold by the electric utility to the retail customer. An

42-1  electric utility may, if available, use a regional average that has been

42-2  determined by the commission for that portion of electricity sold by

42-3  the electric utility to the retail customer for which the specific mix of

42-4  energy sources cannot be discerned.

42-5    (b) The average emissions, measured in pounds per megawatt-

42-6  hour, of:

42-7      (1) Any high-level radioactive waste, sulfur dioxide, carbon

42-8  dioxide, oxides of nitrogen and heavy metals released in this state

42-9  from the generation of the electricity sold by the electric utility to the

42-10  retail customer; and

42-11     (2) Any other substances released in this state from the

42-12  generation of the electricity sold by the electric utility to the retail

42-13  customer which the commission, in cooperation with the division of

42-14  environmental protection of the state department of conservation

42-15  and natural resources, determines may cause a significant health or

42-16  environmental impact and for which sufficiently accurate and

42-17  reliable data is available.

42-18  If an electric utility uses a regional average for the mix of energy

42-19  sources pursuant to paragraph (a), the electric utility shall, if

42-20  available, use for the average emissions pursuant to this paragraph

42-21  a regional calculation that has been determined by the commission.

42-22  (c) Information concerning customer service.

42-23  (d) Information concerning any energy programs that provide

42-24  assistance to retail customers with low incomes, including, without

42-25  limitation, information on the procedures to apply for such

42-26  programs.

42-27  3.  An electric utility:

42-28  (a) Shall make the disclosures required pursuant to this section

42-29  in accordance with the requirements adopted by the commission as

42-30  to form and substance; and

42-31  (b) Shall ensure that it provides the information in compliance

42-32  with all applicable state and federal law governing unfair

42-33  advertising and labeling.

42-34  4.  The commission shall adopt such regulations concerning

42-35  form and substance for the disclosures required by this section as

42-36  are necessary to ensure that retail customers are provided with

42-37  sufficient information so that they can readily evaluate their options

42-38  for obtaining electric services and any products and services relating

42-39  thereto.

42-40  5.  The provisions of this section do not require an electric utility

42-41  to disclose to its retail customers any information about electric

42-42  services, and any products and services relating thereto, that are

42-43  subject to the provisions of sections 3 to 26, inclusive, of Assembly

42-44  Bill No. 661 of this session.

42-45  6.  As used in this section:

42-46  (a) “Electric utility” has the meaning ascribed to it in section 19

42-47  of Assembly Bill No. 369 of this session.

42-48  (b) “Energy source” includes, without limitation:

42-49     (1) Coal, natural gas, oil, propane and any other fossil fuel;

43-1      (2) Geothermal energy, solar energy, hydroelectric energy,

43-2  nuclear energy, wind, biofuel and biomass; and

43-3      (3) Any other specific energy source that is used to generate

43-4  the electricity provided to the retail customer.

43-5  Sec. 97. Assembly Bill No. 369 of this session is hereby amended by

43-6  adding thereto a new section designated sec. 15.5, following sec. 15, to

43-7  read as follows:

43-8    Sec. 15.5.  The provisions of sections 8 to 18, inclusive, of this

43-9  act do not prohibit an electric utility from pledging, mortgaging,

43-10  granting a security interest in or otherwise encumbering any of its

43-11  generation assets or other property for the purpose of securing

43-12  indebtedness of the electric utility which exists on the effective date

43-13  of this act or which is issued or incurred by the electric utility after

43-14  the effective date of this act in financing transactions approved by

43-15  the commission.

43-16  Sec. 98. Section 35 of Assembly Bill No. 369 of this session is hereby

43-17  amended to read as follows:

43-18  Sec. 35. Except as otherwise provided in section 36 of this act

43-19  and notwithstanding the provisions of any other specific statute to the

43-20  contrary:

43-21  1.  An electric utility shall not file an application for a fuel and

43-22  purchased power rider on or after the effective date of this act.

43-23  2.  Each application for a fuel and purchased power rider filed by

43-24  an electric utility which is pending with the commission on the

43-25  effective date of this act and which the electric utility did not place

43-26  into effect before or on April 1, 2001, is void and unenforceable and is

43-27  not valid for any purpose after April 1, 2001.

43-28  3.  If, before March 1, 2001, an electric utility incurred any costs

43-29  for fuel or purchased power, including, without limitation, any costs

43-30  for fuel or purchased power recorded or carried on the books and

43-31  records of the electric utility, and those costs were not recovered or

43-32  could not be recovered pursuant to a fuel and purchased power rider

43-33  placed into effect by the electric utility before March 1, 2001, the

43-34  electric utility is not entitled, on or after March 1, 2001, to recover

43-35  any of those costs for fuel or purchased power from customers, and

43-36  the commission shall not allow the electric utility to recover any of

43-37  those costs for fuel or purchased power from customers.

43-38  4.  Except as otherwise provided in this section, on and after the

43-39  effective date of this act:

43-40  (a) The commission shall not take any further action on the

43-41  comprehensive energy plan, and each electric utility that jointly filed

43-42  the comprehensive energy plan shall be deemed to have withdrawn

43-43  the comprehensive energy plan;

43-44  (b) The rates that each electric utility placed into effect on

43-45  March 1, 2001, pursuant to the comprehensive energy plan shall be

43-46  deemed to be a component of the electric utility’s rates for fuel and

43-47  purchased power; and

43-48  (c) The revenues [collected] for services provided by each electric

43-49  utility [before April] for the period of March 1, 2001, to March 31,

44-1  2001, inclusive, from the rates that each electric utility placed into

44-2  effect on March 1, 2001, pursuant to the comprehensive energy plan

44-3  shall be deemed to be a credit in the electric utility’s deferred

44-4  accounts.

44-5    5.  On or before October 1, 2001, each electric utility that

44-6  primarily serves densely populated counties shall file a general rate

44-7  application pursuant to subsection 3 of NRS 704.110, as amended by

44-8  this act [.] and Assembly Bill No. 661 of this session. On or before

44-9  December 1, 2001, each electric utility that primarily serves densely

44-10  populated counties shall file an application to clear its deferred

44-11  accounts pursuant to subsection 7 of NRS 704.110, as amended by

44-12  this act [.] and Assembly Bill No. 661 of this session. After such an

44-13  electric utility files the application to clear its deferred accounts, the

44-14  commission shall investigate and determine whether the rates that the

44-15  electric utility placed into effect on March 1, 2001, pursuant to the

44-16  comprehensive energy plan are just and reasonable and reflect prudent

44-17  business practices. On the date on which the commission issues a final

44-18  order on the general rate application, the commission shall issue a

44-19  final order on the electric utility’s application to clear its deferred

44-20  accounts. The total rates to provide electric service that were in effect

44-21  on April 1, 2001, for the electric utility must remain in effect until the

44-22  date on which the commission issues a final order on the general rate

44-23  application. The commission shall not adjust the rates of the electric

44-24  utility during this period unless such an adjustment is absolutely

44-25  necessary to avoid rates that are confiscatory under the Constitution of

44-26  the United States or the constitution of this state. The commission:

44-27  (a) May make such an adjustment only to the extent that it is

44-28  absolutely necessary to avoid an unconstitutional result; and

44-29  (b) Shall not, in any proceedings concerning such an adjustment,

44-30  approve any rate or grant any relief that is not absolutely necessary to

44-31  avoid an unconstitutional result.

44-32  After the electric utility files the general rate application that is

44-33  required by this subsection, the electric utility shall file general rate

44-34  applications in accordance with subsection 3 of NRS 704.110, as

44-35  amended by this act [.] and Assembly Bill No. 661 of this session.

44-36  After the electric utility files the application to clear its deferred

44-37  accounts that is required by this subsection, the electric utility shall

44-38  file applications to clear its deferred accounts in accordance with

44-39  section 19 of this act and subsection 7 of NRS 704.110, as amended

44-40  by this act [.] and Assembly Bill No. 661 of this session.

44-41  6.  On or before December 1, 2001, each electric utility that

44-42  primarily serves less densely populated counties shall file a general

44-43  rate application pursuant to subsection 3 of NRS 704.110, as amended

44-44  by this act [.] and Assembly Bill No. 661 of this session. On or before

44-45  February 1, 2002, each electric utility that primarily serves less

44-46  densely populated counties shall file an application to clear its

44-47  deferred accounts pursuant to subsection 7 of NRS 704.110, as

44-48  amended by this act [.] and Assembly Bill No. 661 of this session.

44-49  After such an electric utility files the application to clear its deferred

45-1  accounts, the commission shall investigate and determine whether the

45-2  rates that the electric utility placed into effect on March 1, 2001,

45-3  pursuant to the comprehensive energy plan are just and reasonable

45-4  and reflect prudent business practices. On the date on which the

45-5  commission issues a final order on the general rate application, the

45-6  commission shall issue a final order on the electric utility’s

45-7  application to clear its deferred accounts. The total rates to provide

45-8  electric service that were in effect on April 1, 2001, for the electric

45-9  utility must remain in effect until the date on which the commission

45-10  issues a final order on the general rate application. The commission

45-11  shall not adjust the rates of the electric utility during this period unless

45-12  such an adjustment is absolutely necessary to avoid rates that are

45-13  confiscatory under the Constitution of the United States or the

45-14  constitution of this state. The commission:

45-15  (a) May make such an adjustment only to the extent that it is

45-16  absolutely necessary to avoid an unconstitutional result; and

45-17  (b) Shall not, in any proceedings concerning such an adjustment,

45-18  approve any rate or grant any relief that is not absolutely necessary to

45-19  avoid an unconstitutional result.

45-20  After the electric utility files the general rate application that is

45-21  required by this subsection, the electric utility shall file general rate

45-22  applications in accordance with subsection 3 of NRS 704.110, as

45-23  amended by this act [.] and Assembly Bill No. 661 of this session.

45-24  After the electric utility files the application to clear its deferred

45-25  accounts that is required by this subsection, the electric utility shall

45-26  file applications to clear its deferred accounts in accordance with

45-27  section 19 of this act and subsection 7 of NRS 704.110, as amended

45-28  by this act [.] and Assembly Bill No. 661 of this session.

45-29  Sec. 99. Section 36 of Assembly Bill No. 369 of this session is hereby

45-30  amended to read as follows:

45-31  Sec. 36.  Notwithstanding the provisions of any other specific

45-32  statute to the contrary:

45-33  1.  If, on or after January 1, 1999, and before the effective date of

45-34  this act, an electric utility holding company entered into any

45-35  transaction to acquire a controlling interest in a public utility that

45-36  provides electric service primarily to customers located outside of this

45-37  state, the electric utility holding company shall not carry out the

45-38  transaction unless, on or after the effective date of this act:

45-39  (a) The electric utility holding company files with the commission

45-40  an application for authorization of the transaction; and

45-41  (b) The commission issues a written order that authorizes the

45-42  transaction. The commission shall not authorize the transaction unless

45-43  the commission finds that the transaction will be in the public interest.

45-44  The commission may base its authorization of the transaction upon

45-45  such terms, conditions or modifications as the commission deems

45-46  appropriate.

45-47  2.  If the commission authorizes a transaction described in

45-48  subsection 1 and, before July 1, 2003, the electric utility holding

46-1  company acquires a controlling interest in such a public utility, or any

46-2  affiliate thereof, pursuant to the transaction:

46-3    (a) Each electric utility in which the electric utility holding

46-4  company holds a controlling interest shall not use deferred accounting

46-5  pursuant to section 19 of this act on or after the date on which the

46-6  electric utility holding company acquires a controlling interest in the

46-7  public utility, or any affiliate thereof;

46-8    (b) Not later than 90 days after that date, each such electric utility

46-9  shall file one final application to clear the remaining balance in its

46-10  deferred accounts pursuant to subsection 7 of NRS 704.110, as

46-11  amended by this act [;] and Assembly Bill No. 661 of this session;

46-12  (c) For each such electric utility, the commission shall not carry

46-13  out the provisions of section 35 of this act concerning deferred

46-14  accounting and deferred accounts; and

46-15  (d) The commission shall carry out the remaining provisions of

46-16  section 35 of this act, including, without limitation, the commission’s

46-17  investigation and determination whether the rates that each electric

46-18  utility placed into effect on March 1, 2001, pursuant to the

46-19  comprehensive energy plan are just and reasonable and reflect prudent

46-20  business practices.

46-21  3.  Any transaction that violates the provisions of this section is

46-22  void and unenforceable and is not valid for any purpose.

46-23  Sec. 100. Section 1 of Senate Bill No. 210 of this session is hereby

46-24  amended to read as follows:

46-25     Section 1.  NRS 704.033 is hereby amended to read as follows:

46-26     704.033  1.  [The] Except as otherwise provided in subsection 6,

46-27  the commission shall levy and collect an annual assessment from all

46-28  public utilities , providers of discretionary natural gas service and

46-29  alternative sellers subject to the jurisdiction of the commission.

46-30  2.  Except as otherwise provided in [subsection 3,] subsections 3

46-31  and 4, the annual assessment must be:

46-32  (a) For the use of the commission, not more than 3.50 mills; and

46-33  (b) For the use of the consumer’s advocate, not more than

46-34  0.75 mills,

46-35  on each dollar of gross operating revenue derived from the intrastate

46-36  operations of such utilities , providers of discretionary natural gas

46-37  service and alternative sellers in the State of Nevada . [, except that

46-38  the minimum assessment in any 1 year must be $10.] The total annual

46-39  assessment must be not more than 4.25 mills.

46-40  3.  [For railroads the total annual assessment must be the amount

46-41  levied for the use of the commission pursuant to paragraph (a) of

46-42  subsection 2.] The levy for the use of the consumer’s advocate must

46-43  not be assessed against railroads.

46-44  4.  The minimum assessment in any 1 year must be $100.

46-45  5.  The gross operating revenue of the utilities must be determined

46-46  for the preceding calendar year. In the case of:

46-47  (a) Telephone utilities, except as otherwise provided in paragraph

46-48  (c), the revenue shall be deemed to be all intrastate revenues . [that are

46-49  considered by the commission for the purpose of establishing rates.]

47-1    (b) Railroads, the revenue shall be deemed to be the revenue

47-2  received only from freight and passenger intrastate movements.

47-3    (c) All public utilities, providers of discretionary natural gas

47-4  service and alternative sellers, the revenue does not include the

47-5  proceeds of any commodity, energy or service furnished to another

47-6  public utility , provider of discretionary natural gas service or

47-7  alternative seller for resale.

47-8    6.  Providers of commercial mobile radio service are not subject

47-9  to the annual assessment and, in lieu thereof, shall pay to the

47-10  commission an annual licensing fee of $200.

47-11  Sec. 101. Section 2 of Senate Bill No. 210 of this session is hereby

47-12  amended to read as follows:

47-13  Sec. 2.  NRS 704.035 is hereby amended to read as follows:

47-14     704.035  1.  On or before June 1 of each year, the commission

47-15  shall mail revenue report forms to all public utilities , providers of

47-16  discretionary natural gas service and alternative sellers under its

47-17  jurisdiction, to the address of those utilities , providers of

47-18  discretionary natural gas service and alternative sellers on file with

47-19  the commission. The revenue report form serves as notice of the

47-20  commission’s intent to assess [the utilities,] such entities, but failure

47-21  to notify any [utility] such entity does not invalidate the assessment

47-22  with respect thereto.

47-23  2.  Each public utility , provider of discretionary natural gas

47-24  service and alternative seller subject to the provisions of NRS

47-25  704.033 shall complete the revenue report referred to in subsection 1,

47-26  compute the assessment and return the completed revenue report to

47-27  the commission accompanied by payment of the assessment and any

47-28  penalty due, pursuant to the provisions of subsection 5.

47-29  3.  The assessment is due on July 1 of each year, but may, at the

47-30  option of the public utility, provider of discretionary natural gas

47-31  service or alternative seller be paid quarterly on July 1, October 1,

47-32  January 1 and April 1.

47-33  4.  The assessment computed by the utility , provider of

47-34  discretionary natural gas service or alternative seller is subject to

47-35  review and audit by the commission, and the amount of the

47-36  assessment may be adjusted by the commission as a result of the audit

47-37  and review.

47-38  5.  Any public utility , provider of discretionary natural gas

47-39  service or alternative seller failing to pay the assessment provided for

47-40  in NRS 704.033 on or before August 1, or if paying quarterly, on or

47-41  before August 1, October 1, January 1 or April 1, shall pay, in

47-42  addition to such assessment, a penalty of 1 percent of the total unpaid

47-43  balance for each month or portion thereof that the assessment is

47-44  delinquent, or $10, whichever is greater, but no penalty may exceed

47-45  $1,000 for each delinquent payment.

47-46  6.  When a public utility , provider of discretionary natural gas

47-47  service or alternative seller sells, transfers or conveys substantially all

47-48  of its assets or , if applicable, its certificate of public convenience and

47-49  necessity, the commission shall determine, levy and collect the

48-1  accrued assessment for the current year not later than 30 days after the

48-2  sale, transfer or conveyance, unless the transferee has assumed

48-3  liability for the assessment. For purposes of this subsection , the

48-4  jurisdiction of the commission over the selling, transferring or

48-5  conveying public utility , provider of discretionary natural gas

48-6  service or alternative seller continues until it has paid the assessment.

48-7    7.  The commission may bring an appropriate action in its own

48-8  name for the collection of any assessment and penalty which is not

48-9  paid as provided in this section.

48-10  8.  The commission shall, on a quarterly basis, transfer to the

48-11  account for the consumer’s advocate that portion of the assessments

48-12  collected which belongs to the consumer’s advocate.

48-13  Sec. 102. Section 6 of Senate Bill No. 372 of this session is hereby

48-14  amended to read as follows:

48-15  Sec. 6.  1.  “Provider of electric service” and “provider” mean

48-16  any person or entity that is in the business of selling electricity to

48-17  retail customers for consumption in this state, regardless of whether

48-18  the person or entity is otherwise subject to regulation by the

48-19  commission.

48-20  2.  The term includes, without limitation, a provider of new

48-21  electric resources that is selling electricity to an eligible customer

48-22  for consumption in this state pursuant to the provisions of sections 3

48-23  to 26, inclusive, of Assembly Bill No. 661 of this session.

48-24  3.  The term does not include:

48-25  (a) This state or an agency or instrumentality of this state.

48-26  (b) A rural electric cooperative established pursuant to chapter 81

48-27  of NRS.

48-28  (c) A general improvement district established pursuant to chapter

48-29  318 of NRS.

48-30  (d) A utility established pursuant to chapter 709 or 710 of NRS.

48-31  (e) A cooperative association, nonprofit corporation, nonprofit

48-32  association or provider of electric service which is declared to be a

48-33  public utility pursuant to NRS 704.673 and which provides service

48-34  only to its members.

48-35  (f) A landlord of a mobile home park or owner of a company town

48-36  who is subject to any of the provisions of NRS 704.905 to 704.960,

48-37  inclusive.

48-38  (g) A landlord who pays for electricity that is delivered through a

48-39  master meter and who distributes or resells the electricity to one or

48-40  more tenants for consumption in this state.

48-41  Sec. 103. Section 8 of Senate Bill No. 372 of this session is hereby

48-42  amended to read as follows:

48-43  Sec. 8.  “Renewable energy system” means:

48-44  1.  A facility or energy system that:

48-45  (a) Uses renewable energy to generate electricity; and

48-46  (b) Transmits or distributes the electricity that it generates from

48-47  renewable energy via:

48-48     (1) A power line which is dedicated to the transmission or

48-49  distribution of electricity generated from renewable energy and which

49-1  is connected to a facility or system owned, operated or controlled by a

49-2  provider of electric service; or

49-3      (2) A power line which is shared with not more than one facility

49-4  or energy system generating electricity from nonrenewable energy

49-5  and which is connected to a facility or system owned, operated or

49-6  controlled by a provider of electric service.

49-7    2.  A solar thermal energy system that reduces the consumption of

49-8  electricity.

49-9    3.  A net metering system used by a customer-generator

49-10  pursuant to NRS 704.766 to 704.775, inclusive.

49-11  Sec. 104. Section 9 of Senate Bill No. 372 of this session is hereby

49-12  amended to read as follows:

49-13  Sec. 9.  1.  “Retail customer” means [a customer who] an end-

49-14  use customer that purchases electricity [at retail.] for consumption in

49-15  this state.

49-16  2.  The term includes, without limitation:

49-17  (a) This state, a political subdivision of this state or an agency or

49-18  instrumentality of this state or political subdivision of this state when

49-19  it is an end-use customer that purchases electricity [at retail; and] for

49-20  consumption in this state, including, without limitation, when it is

49-21  an eligible customer that purchases electricity for consumption in

49-22  this state from a provider of new electric resources pursuant to the

49-23  provisions of sections 3 to 26, inclusive, of Assembly Bill No. 661 of

49-24  this session.

49-25  (b) A residential, commercial or industrial end-use customer that

49-26  purchases electricity for consumption in this state, including,

49-27  without limitation, an eligible customer that purchases electricity for

49-28  consumption in this state from a provider of new electric resources

49-29  pursuant to the provisions of sections 3 to 26, inclusive, of Assembly

49-30  Bill No. 661 of this session.

49-31  (c) A landlord of a mobile home park or owner of a company town

49-32  who is subject to any of the provisions of NRS 704.905 to 704.960,

49-33  inclusive.

49-34  (d) A landlord who pays for electricity that is delivered through a

49-35  master meter and who distributes or resells the electricity to one or

49-36  more tenants for consumption in this state.

49-37  Sec. 105. 1.  NRS 523.171, 704.080, 704.090 and 704.275 are

49-38  hereby repealed.

49-39  2.  Section 2 of Assembly Bill No. 197 of this session is hereby

49-40  repealed.

49-41  3.  Section 10 of Assembly Bill No. 369 of this session is hereby

49-42  repealed.

49-43  4.  Section 4 of Senate Bill No. 372 of this session is hereby repealed.

49-44  Sec. 106. 1.  For the purposes of sections 3 to 26, inclusive, of this

49-45  act:

49-46  (a) An electric utility that provides distribution services to an eligible

49-47  customer who is purchasing energy, capacity or ancillary services from a

49-48  provider of new electric resources shall charge the eligible customer based

49-49  upon the rates for the electric utility’s distribution services that were on file

50-1  with the commission on April 1, 2001, until the commission approves a

50-2  change in those rates and such a change becomes effective.

50-3  (b) Not later than March 1, 2002, the commission shall establish the

50-4  initial rates for all other components of electric service which are within

50-5  the jurisdiction of the commission and which are necessary for a provider

50-6  of new electric resources to sell energy, capacity and ancillary services to

50-7  an eligible customer pursuant to the provisions of sections 3 to 26,

50-8  inclusive, of this act. The commission may establish such initial rates as a

50-9  part of a general rate application that is pending or filed with the

50-10  commission on or after the effective date of this act.

50-11  2.  The commission shall:

50-12  (a) Not later than November 1, 2001, adopt regulations to carry out and

50-13  enforce the provisions of sections 3 to 26, inclusive, of this act.

50-14  (b) Not later than March 1, 2002, approve tariffs to carry out and

50-15  enforce the provisions of section 22 of this act.

50-16  3.  Notwithstanding the provisions of section 25 of this act, the

50-17  commission is not required to submit a report to the legislative commission

50-18  for any calendar quarter that ends before October 1, 2001.

50-19  4.  As used in this section, the words and terms defined in sections 4 to

50-20  16, inclusive, of this act have the meanings ascribed to them in those

50-21  sections.

50-22  Sec. 107.  1.  As soon as practicable after July 1, 2003, the governor

50-23  shall appoint two additional commissioners to the public utilities

50-24  commission of Nevada in accordance with the provisions of section 28 of

50-25  this act. For the initial terms of those commissioners, the governor shall

50-26  appoint:

50-27  (a) One commissioner whose term begins on October 1, 2003, and

50-28  expires on September 30, 2005; and

50-29  (b) One commissioner whose term begins on October 1, 2003, and

50-30  expires on September 30, 2006.

50-31  2.  The provisions of this act do not abrogate or affect the term of office

50-32  of any other commissioner of the public utilities commission of Nevada.

50-33  Sec. 108. 1.  The provisions of section 54 of this act do not apply to

50-34  any transaction entered into by a local governmental entity before January

50-35  1, 2002, to acquire or otherwise obtain control of the assets of a public

50-36  utility providing water services.

50-37  2.  As used in this section:

50-38  (a) “Assets” includes, without limitation, any hydroelectric plant,

50-39  facility, equipment or system which has a generating capacity of not more

50-40  than 15 megawatts and which is located on the Truckee River or on a

50-41  waterway that is appurtenant to or connected to the Truckee River.

50-42  (b) “Local governmental entity” means a political subdivision of this

50-43  state or an agency or instrumentality of one or more political subdivisions

50-44  of this state. The term includes, without limitation, a public water authority

50-45  consisting of one or more political subdivisions of this state.

50-46  Sec. 109.  1.  As soon as practicable after the effective date of this

50-47  act, the appointing authorities set forth in section 84 of this act shall

50-48  appoint members to the task force for renewable energy and energy

50-49  conservation which is created by section 84 of this act.

51-1  2.  At the first meeting of the task force following the appointment of

51-2  the initial members of the task force, the initial members of the task force

51-3  shall draw lots to determine which:

51-4  (a) Five members of the task force will serve initial terms that expire on

51-5  June 30, 2004.

51-6  (b) Four members of the task force will serve initial terms that expire on

51-7  June 30, 2003.

51-8  3.  Not later than 10 days after the first meeting of the task force

51-9  following the appointment of the initial members of the task force, the

51-10  public utilities commission of Nevada shall transfer the sum of $250,000

51-11  from its reserve account in the public utilities commission regulatory fund,

51-12  created by NRS 703.147, to the trust fund for renewable energy and energy

51-13  conservation, created by section 83 of this act.

51-14  Sec. 110.  1.  Notwithstanding the provisions of this act and except as

51-15  otherwise provided in subsection 2, the department of business and

51-16  industry and its director shall exercise all the power and perform all the

51-17  duties that are assigned to the office of energy and its director pursuant to

51-18  the provisions of chapter 523 of NRS, as amended by this act, until the date

51-19  on which the governor certifies that the office of energy and its director are

51-20  prepared to carry out those provisions, or until January 1, 2002, whichever

51-21  occurs earlier.

51-22  2.  During the period described in subsection 1, the office of energy and

51-23  its director may exercise any power and perform any duty assigned to them

51-24  pursuant to the provisions of chapter 523 of NRS, as amended by this act,

51-25  if the exercise of the power or the performance of the duty is necessary as

51-26  an organizational, preparatory or preliminary measure to prepare the office

51-27  of energy and its director to carry out those provisions.

51-28  Sec. 111.  1.  Any administrative regulations adopted by an officer or

51-29  an agency whose name has been changed or whose responsibilities have

51-30  been transferred pursuant to the provisions of this act to another officer or

51-31  agency remain in force until amended by the officer or agency to which the

51-32  responsibility for the adoption of the regulations has been transferred.

51-33  2.  Any contracts or other agreements entered into by an officer or

51-34  agency whose name has been changed or whose responsibilities have been

51-35  transferred pursuant to the provisions of this act to another officer or

51-36  agency are binding upon the officer or agency to which the responsibility

51-37  for the administration of the provisions of the contract or other agreement

51-38  has been transferred. Such contracts and other agreements may be enforced

51-39  by the officer or agency to which the responsibility for the enforcement of

51-40  the provisions of the contract or other agreement has been transferred.

51-41  3.  Any action taken by an officer or agency whose name has been

51-42  changed or whose responsibilities have been transferred pursuant to the

51-43  provisions of this act to another officer or agency remains in effect as if

51-44  taken by the officer or agency to which the responsibility for the

51-45  enforcement of such actions has been transferred.

51-46  Sec. 112. 1.  This section and sections 1 to 27, inclusive, 30 to 94,

51-47  inclusive, 96 to 111, inclusive, and 113 of this act become effective upon

51-48  passage and approval.

51-49  2.  Section 95 of this act becomes effective on July 1, 2001.

52-1  3.  Sections 28 and 29 of this act become effective on October 1, 2003.

52-2  Sec. 113.  1.  The legislative counsel shall:

52-3  (a) In preparing the reprint and supplements to the Nevada Revised

52-4  Statutes, appropriately change any references to an officer or agency whose

52-5  name is changed or whose responsibilities have been transferred pursuant

52-6  to the provisions of this act to refer to the appropriate officer or agency.

52-7  (b) In preparing supplements to the Nevada Administrative Code,

52-8  appropriately change any references to an officer or agency whose name is

52-9  changed or whose responsibilities have been transferred pursuant to the

52-10  provisions of this act to refer to the appropriate officer or agency.

52-11  2.  Any reference in a bill or resolution passed by the 71st session of

52-12  the Nevada legislature to an officer or agency whose name is changed or

52-13  whose responsibilities have been transferred pursuant to the provisions of

52-14  this act to another officer or agency shall be deemed to refer to the officer

52-15  or agency to which the responsibility is transferred.

 

52-16  TEXT OF REPEALED SECTIONS

 

52-17  523.171  Information and assistance to state agencies. The

52-18   director, in cooperation with the chief of the buildings and grounds

52-19   division of the department of administration, shall, upon request, provide

52-20   information and assistance to any agency, bureau, board, commission,

52-21   department or division which is engaged in the management, planning,

52-22   utilization and distribution of energy.

52-23  704.080  Printing and posting of schedules. A copy, or so much of

52-24   the schedule as the commission shall deem necessary for the use of the

52-25   public, shall be printed in plain type and posted in every station or office

52-26   of such public utility where payments are made by the consumers or users,

52-27   open to the public, in such form and place as to be readily accessible to the

52-28   public and conveniently inspected.

52-29  704.090  Schedule of joint rates: Filing; printing; posting. When a

52-30   schedule of joint rates or charges is or may be in force between two or

52-31   more public utilities, such schedule shall, in like manner, be printed and

52-32   filed with the commission, and so much thereof as the commission may

52-33   deem necessary for the use of the public shall be posted conspicuously in

52-34   every station or office as provided in NRS 704.080.

52-35  704.275  Powers of commission: Standards for requiring hearing

52-36   on telephone rates. The commission shall determine whether a hearing

52-37   must be held when the proposed change by a public utility furnishing

52-38   telephone service in any schedule stating a new or revised individual or

52-39   joint rate or charge, or any new or revised individual or joint regulation or

52-40   practice affecting any rate or charge, will result in an increase in annual

52-41   gross revenue as certified by the applicant of $50,000 or 10 percent of the

52-42   applicant’s gross revenue, whichever is less.

52-43  Section 2 of Assembly Bill No. 197 of this session:

52-44  Sec. 2.  NRS 704.965 is hereby amended to read as follows:

53-1     704.965  As used in NRS 704.965 to 704.990, inclusive, and

53-2  section 1 of this act, unless the context otherwise requires, the words

53-3   and terms defined in NRS 704.966 to 704.975, inclusive, have the

53-4   meanings ascribed to them in those sections.

53-5  Section 10 of Assembly Bill No. 369 of this session:

53-6    Sec. 10. “Consumer’s advocate” means the consumer’s

53-7   advocate of the bureau of consumer protection in the office of the

53-8   attorney general.

53-9  Section 4 of Senate Bill No. 372 of this session:

53-10  Sec. 4. “Biomass” means any organic matter that is available

53-11   on a renewable basis, including, without limitation:

53-12  1.  Agricultural crops and agricultural wastes and residues;

53-13  2.  Wood and wood wastes and residues;

53-14  3.  Animal wastes;

53-15  4.  Municipal wastes; and

53-16  5.  Aquatic plants.

 

53-17  H