Senate Bill No. 210–Committee on Commerce and Labor

 

CHAPTER..........

 

AN ACT relating to utilities; revising provisions governing annual assessments imposed by the public utilities commission of Nevada; revising provisions governing the establishment of the rates of certain utilities; providing that certain accident reports concerning utilities must be open to public inspection; changing the dates for the calculation and payment of assessments by railroads; revising provisions governing the adoption of water conservation and incentive plans by utilities; revising provisions governing the provision of utility services to mobile home parks and company towns to include services from alternative sellers; providing for the acquisition of utility services by mobile home parks from alternative sellers; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

   Section 1.  NRS 704.033 is hereby amended to read as follows:

   704.033  1.  [The] Except as otherwise provided in subsection 6, the

 commission shall levy and collect an annual assessment from all public

 utilities , providers of discretionary natural gas service and alternative

 sellers subject to the jurisdiction of the commission.

   2.  Except as otherwise provided in [subsection 3,] subsections 3 and 4,

 the annual assessment must be:

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

   (b) For the use of the consumer’s advocate of the bureau of consumer

 protection in the office of the attorney general, not more than

0.75 mills,

on each dollar of gross operating revenue derived from the intrastate

 operations of such utilities , providers of discretionary natural gas service

 and alternative sellers in the State of Nevada . [, except that the minimum

 assessment in any 1 year must be $10.] The total annual assessment must

 be not more than 4.25 mills.

   3.  [For railroads the total annual assessment must be the amount levied

 for the use of the commission pursuant to paragraph (a) of subsection 2.]

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

 against railroads.

   4.  The minimum assessment in any 1 year must be $100.

   5.  The gross operating revenue of the utilities must be determined for

 the preceding calendar year. In the case of:

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

 the revenue shall be deemed to be all intrastate revenues . [that are

 considered by the commission for the purpose of establishing rates.]

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

 only from freight and passenger intrastate movements.

   (c) All public utilities, providers of discretionary natural gas service

 and alternative sellers, the revenue does not include the proceeds of any

 commodity, energy or service furnished to another public utility , provider

 of discretionary natural gas service or alternative seller for resale.

   6.  Providers of commercial mobile radio service are not subject to the

 annual assessment and, in lieu thereof, shall pay to the commission an

 annual licensing fee of $200.


   Sec. 2.   NRS 704.035 is hereby amended to read as follows:

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

 mail revenue report forms to all public utilities , providers of discretionary

 natural gas service and alternative sellers under its jurisdiction, to the

 address of those utilities , providers of discretionary natural gas service

 and alternative sellers on file with the commission. The revenue report

 form serves as notice of the commission’s intent to assess [the utilities,]

 such entities, but failure to notify any [utility] such entity does not

 invalidate the assessment with respect thereto.

   2.  Each public utility , provider of discretionary natural gas service

 and alternative seller subject to the provisions of NRS 704.033 shall

 complete the revenue report referred to in subsection 1, compute the

 assessment and return the completed revenue report to the commission

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

 to the provisions of subsection 5.

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

 of the public utility, provider of discretionary natural gas service or

 alternative seller be paid quarterly on July 1, October 1, January 1 and

 April 1.

   4.  The assessment computed by the utility , provider of discretionary

 natural gas service or alternative seller is subject to review and audit by

 the commission, and the amount of the assessment may be adjusted by the

 commission as a result of the audit and review.

   5.  Any public utility , provider of discretionary natural gas service or

 alternative seller failing to pay the assessment provided for in NRS

 704.033 on or before August 1, or if paying quarterly, on or before

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

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

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

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

 delinquent payment.

   6.  When a public utility , provider of discretionary natural gas service

 or alternative seller sells, transfers or conveys substantially all of its assets

 or , if applicable, its certificate of public convenience and necessity, the

 commission shall determine, levy and collect the accrued assessment for

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

 conveyance, unless the transferee has assumed liability for the assessment.

 For purposes of this subsection , the jurisdiction of the commission over

 the selling, transferring or conveying public utility , provider of

 discretionary natural gas service or alternative seller continues until it

 has paid the assessment.

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

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

 provided in this section.

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

 for the consumer’s advocate of the bureau of consumer protection in the

 office of the attorney general that portion of the assessments collected

 which belongs to the consumer’s advocate.

 

 


   Sec. 3.  NRS 704.095 is hereby amended to read as follows:

   704.095  The commission shall adopt regulations which provide a

 simplified procedure or methodology for a change of rates for those public

 utilities which furnish water or services for the disposal of sewage, or

 both, to persons within this state for compensation, and which:

   1.  Serve 3,000 or fewer persons; and

   2.  Had during the immediately preceding 12-month period gross sales

 for water or services for the disposal of sewage, or both, amounting to

 $1,000,000 or less.

   Sec. 4.  NRS 704.190 is hereby amended to read as follows:

   704.190  1.  Every public utility operating in this state shall, whenever

 an accident occurs in the conduct of its operation causing death, give

 prompt notice thereof to the commission, in such manner and within such

 time as the commission may prescribe. If , in its judgment , the public

 interest requires it, the commission may cause an investigation to be made

 forthwith of any accident, at such place and in such manner as the

 commission deems best.

   2.  Every such public utility shall report to the commission, at the time,

 in the manner and on such forms as the commission by its printed rules

 and regulations prescribes, all accidents happening in this state and

 occurring in, on or about the premises, plant, instrumentality or facility

 used by any such utility in the conduct of its business.

   3.  The commission shall adopt all reasonable rules and regulations

 necessary for the administration and enforcement of this section. The rules

 and regulations must [in any event] require that all accidents required to be

 reported pursuant to this section be reported to the commission at least

 once every calendar month by such officer or officers of the utility as the

 commission directs.

   4.  The commission shall adopt and utilize all accident report forms,

 which [forms] must be so designed as to provide a concise and accurate

 report of the accident . [and which]  The report must [in any event] show

 the true cause of the accident. The accident report forms adopted for the

 reporting of railroad accidents must  , as near as practicable, be the same

 in design as [near as may be as] the railroad accident report forms

 provided and used by the Surface Transportation Board.

   5.  If any accident is reported to the commission [is reported] by the

 utility as being caused by or through the negligence of an employee and

 thereafter the employee is absolved from such negligence by the utility

 and found not to be responsible for the accident, that fact must be reported

 by the utility to the commission.

   6.  [All accident reports] Each accident report required to be made by

 a public utility pursuant to this section must be filed in the office of the

 commission and there preserved. [Notwithstanding any other provisions of

 law, neither any] Each accident report [made as] required to be made by a

 public utility pursuant to this chapter [, nor any report of] and each report

 made by the commission [made] pursuant to its investigation of any

 accident [investigation made by it , may] :

   (a) Except as otherwise provided in subsection 2 of NRS 703.190,

 must be open to public inspection [or disclosed to any person, except upon


order of the commission, nor may either or any of the reports, or any

portion thereof,] ; and

   (b) Notwithstanding any specific statute to the contrary, must not, in

 whole or in part, be admitted as evidence or used for any purpose in any

 suit or action for damages [growing] arising out of any matter mentioned

 in [the] :

     (1) The accident report required to be made by the public utility; or

     (2) The report [of any such] made by the commission pursuant to its

 investigation.

   Sec. 5.  NRS 704.309 is hereby amended to read as follows:

   704.309  1.  The commission shall levy and collect an annual

 assessment from each railroad subject to the jurisdiction of the

 commission that transports cargo into, out of or through this state to

 support the activities of the commission relating to railroad safety.

   2.  The annual assessment levied on railroads:

   (a) Must be equal to the costs incurred by the commission that are not

 offset by the fees paid pursuant to NRS 459.512.

   (b) Must be not more than 1 cent per ton of cargo transported by the

 railroads into, out of or through this state during the immediately

 preceding calendar year.

   3.  On or before [August] September 1 of each year, the commission

 shall:

   (a) Calculate the amount of the assessment to be levied pursuant to this

 section for the previous fiscal year; and

   (b) Mail to each railroad subject to the provisions of this section to the

 current address of the railroad on file with the commission a notice

 indicating the amount of the assessment. The failure of the commission to

 so notify a railroad does not invalidate the assessment.

   4.  An assessment levied pursuant to this section is due on or before

 [October] November 1 of each year. Each railroad that is subject to the

 provisions of this section which fails to pay the assessment on or before

 [November] December 1, shall pay, in addition to the assessment, a

 penalty of 1 percent of the total unpaid balance for each month or portion

 thereof that the assessment is delinquent or $10, whichever is greater,

 except that no penalty may exceed $1,000 for each delinquent payment.

   5.  If a railroad sells or transfers its certificate of public convenience

 and necessity or sells or transfers substantially all of its assets, the

 commission shall calculate, levy and collect the accrued assessment for the

 current year not later than 30 days after the sale or transfer, unless the

 purchaser or transferee has assumed liability for the assessment. For the

 purposes of this subsection, the jurisdiction of the commission over the

 sale or transfer of a railroad continues until the assessment of the railroad

 has been paid.

   6.  The commission may bring an appropriate action in its own name

 for the collection of any assessment and penalty that is not paid pursuant

 to this section.

   Sec. 6.  NRS 704.662 is hereby amended to read as follows:

   704.662  1.  Except as otherwise provided in subsection 5, each public

 utility which furnishes, for compensation, any water for municipal,

 industrial or domestic purposes shall adopt a plan of water conservation


based on the climate and the living conditions in its service area in

accordance with the provisions of NRS 704.6622. The provisions of the

 plan must only apply to the public utility’s property and its customers.

   2.  As part of the procedure of adopting a plan, the public utility shall

 provide an opportunity for any interested party, including, but not limited

 to, any private or public entity that supplies water for municipal, industrial

 or domestic purposes, to submit written views and recommendations on

 the plan.

   3.  Except as otherwise provided in subsection 6, the plan:

   (a) Must be available for inspection by members of the public during

 office hours at the office of the public utility; and

   (b) May be revised from time to time to reflect the changing needs and

 conditions of the service area. Each such revision must be filed with the

 commission and made available for inspection by members of the public

 within 30 days after its adoption.

   4.  [The plan must be submitted to the commission on or before July 1,

 1992. The commission shall review the plan for compliance with this

 section within 30 days after its submission.] The plan must be approved by

 the commission before it is put into effect.

   5.  In lieu of adopting a plan pursuant to subsection 1, a public utility

 which is subject to the provisions of NRS 704.095 may elect to comply

 with a plan of water conservation adopted by the commission for this

 purpose.

   6.  If the public utility is required by order of the commission to file a

 management plan for water resources, the public utility may adopt and file

 the plan of water conservation with the commission at the same time it is

 required to file the management plan for water resources.

   Sec. 7.  NRS 704.6624 is hereby amended to read as follows:

   704.6624  1.  Each public utility which furnishes, for compensation,

 any water for municipal, industrial or domestic purposes shall[, on or

 before July 1, 1992,] adopt a plan to provide incentives:

   (a) To encourage water conservation in its service area;

   (b) To retrofit existing structures with plumbing fixtures designed to

 conserve the use of water; and

   (c) For the installation of landscaping that uses a minimal amount of

 water.

   2.  As part of the procedure of adopting a plan, the public utility shall

 provide an opportunity for any interested person to submit written views

 and recommendations on the plan.

   3.  The plan:

   (a) Must be available for inspection by members of the public during

 office hours at the office of the public utility; and

   (b) May be revised from time to time to reflect the changing needs and

 conditions of the service area. Each such revision must be filed with the

 commission and made available for inspection by members of the public

 within 30 days after its adoption.

   4.  The commission shall review the plan for compliance with this

 section within 30 days after its submission. The plan must be approved by

 the commission before it is put into effect.

 


   Sec. 8.  NRS 704.905 is hereby amended to read as follows:

   704.905  As used in NRS [704.910] 704.905 to 704.960, inclusive:

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

 704.994.

   2. “Company town” means a community whose primary purpose is to

 provide housing to employees of a person who owns not less than 70

 percent of the dwellings, and may include commercial or other supporting

 establishments.

   [2.] 3. “Dwelling” includes a commercial or other supporting

 establishment.

   [3.] 4. “Utility” includes a public utility and all city, county or other

 governmental entities which provide electric, gas or water service to a

 mobile home park or a company town.

   Sec. 9.  NRS 704.910 is hereby amended to read as follows:

   704.910  1.  The provisions of NRS 704.910 to 704.960, inclusive,

 apply to mobile home parks governed by the provisions of chapters 118B

 and 461A of NRS, utilities and alternative sellers which provide utility

 service to those parks and landlords who operate those parks.

   2.  A utility or an alternative seller which provides gas, water or

 electricity to any landlord exclusively for distribution or resale to tenants

 residing in mobile homes or for the landlord’s residential use shall not

 charge the landlord for those services at a rate higher than the current rates

 offered by the utility or alternative seller, as appropriate, to its residential

 customers.

   Sec. 10.  NRS 704.920 is hereby amended to read as follows:

   704.920  1.  The provisions of NRS 704.920 to 704.960, inclusive,

 apply to company towns, utilities and alternative sellers which provide

 utility services to company towns, and persons who own and operate

 company towns.

   2.  The commission shall require a public utility or an alternative

 seller, as appropriate, which provides [service] utility services to a mobile

 home park or to a company town, or an independent person who is

 qualified, to conduct examinations to examine and test the lines and

 equipment for distributing electricity and gas within the park or town at

 the request of the manufactured housing division of the department of

 business and industry or a city or county which has responsibility for the

 enforcement of the provisions of chapter 461A of NRS. The utility[,] or

 alternative seller, the person selected to conduct the examination and the

 commission may enter a mobile home park or company town at reasonable

 times to examine and test the lines and equipment, whether or not they are

 owned by a utility[.] or an alternative seller.

   3.  The utility or alternative seller, as appropriate, or the person

 selected to conduct the examination , shall conduct the examination and

 testing to determine whether any line or equipment is unsafe for service

 under the safety standards adopted by the commission for the

 maintenance, use and operation of lines and equipment for distributing

 electricity and gas, and shall report the results of the examination and

 testing to the commission.

   4.  The owner of the mobile home park or company town shall pay for

 the costs of the examination and testing.


   5.  If the landlord of a mobile home park or owner of a company town

refuses to allow the examination and testing to be made as provided in this

 section, the commission shall deem the unexamined lines and equipment

 to be unsafe for service.

   6.  If the commission finds:

   (a) Or deems any lines or equipment within a mobile home park or

 company town to be unsafe for service, it shall take appropriate action to

 protect the safety of the residents of the park or town.

   (b) Such lines or equipment to be unsafe for service or otherwise not in

 compliance with its safety standards, it may, after a hearing, order the

 landlord or owner to repair or replace such lines and equipment. For this

 purpose [he] , the landlord or owner may expend some or all of the

 money in his account for service charges for utilities, which he is required

 to keep under NRS 704.940.

   Sec. 11.  NRS 704.930 is hereby amended to read as follows:

   704.930  If a utility [furnishes] or an alternative seller provides a

 utility service to a mobile home park or company town and the landlord of

 the park or owner of the town charges his tenants or the occupants of his

 dwellings for that service, [he] the landlord or owner shall:

   1.  Provide that service to his tenants or the occupants of his dwellings

 in a manner which is consistent with the utility’s tariffs on file with the

 commission , if applicable, and any law, ordinance or governmental

 regulation relating to the provision of [those services.] that service. The

 landlord or owner of the town shall not interrupt such a service for

 nonpayment of charges unless the interruption is performed in a manner

 which is consistent with the utility’s tariffs on file with the commission , if

 applicable, and any law, ordinance or governmental regulation relating to

 the manner of interrupting such a service for nonpayment of charges.

   2.  Not more than 5 days after he receives notice of a proposed increase

 in the [utility’s rates,] rates of the utility service, give notice to his tenants

 or those occupants of the proposed increase.

   Sec. 12.  NRS 704.940 is hereby amended to read as follows:

   704.940  1.  In a mobile home park or company town where the

 landlord or owner is billed by a gas or electric utility or an alternative

 seller and in turn charges the tenants or occupants of the dwellings for the

 service provided by the utility[,] or alternative seller, and the park or

 town:

   (a) Is equipped with individual meters for each lot, the landlord or

 owner shall not charge a tenant or occupant for that service at a rate higher

 than the rate paid by the landlord or owner.

   (b) Is not equipped with individual meters for each lot, the landlord or

 owner shall prorate the cost of the service equally among the tenants of the

 park or occupants of the dwellings who use the service, but the prorated

 charges must not exceed in the aggregate the cost of the service to the

 landlord or owner.

   2.  In a mobile home park or company town that:

   (a) Is equipped with individual water meters for each lot, the individual

 meters must be read and billed by the purveyor of the water.

   (b) Is not equipped with individual water meters for each lot and the

 landlord or owner is billed by the purveyor of the water and in turn

 charges


the tenants or occupants of the dwellings for the service provided by the

purveyor, the landlord or owner shall prorate the cost of the service equally

 among the tenants of the park or occupants of the dwellings who use the

 service, but the prorated charges must not exceed in the aggregate the cost

 of the service to the landlord or owner.

The landlord or owner of a mobile home park that converts from a master

-metered water system to individual water meters for each mobile home lot

 shall not charge or receive any fee, surcharge or rent increase to recover

 from his tenants the costs of the conversion. The owner of a company

 town that is not equipped with individual water meters shall not convert

 from the master-metered water system to individual water meters.

   3.  To the extent that the cost of providing a utility service to the

 common area of a mobile home park or company town can be identified,

 the landlord or owner may not recover the cost of [service provided by]

 the utility service provided to the common area by directly charging a

 tenant or the occupant of a dwelling for those services.

   4.  The landlord of a mobile home park or owner of a company town

 may assess and collect a charge to reimburse him for the actual cost of the

 service charge he is required to pay to a water utility serving the park or

 town. If he collects such a charge, he shall prorate the actual cost of the

 service charge to the tenants or occupants of dwellings who use the

 service. He shall not collect more than the aggregate cost of the service to

 him.

   5.  The landlord may assess and collect a service charge [for gas and

 electric utilities] from the tenants of the park[,] for the provision of gas

 and electric utility services, but the amount of the charge must not be

 more than the tenants would be required to pay the [serving utility.] utility

 or alternative seller providing the service. The landlord shall:

   (a) Keep the money from the service charges in a separate account and

 expend it only for federal income taxes which must be paid as a result of

 the collection of the service charge, for preventive maintenance or for

 repairing or replacing utility lines or equipment when ordered or granted

 permission to do so by the commission; and

   (b) Retain for at least 3 years a complete record of all deposits and

 withdrawals of money from the account and file the record with the

 commission on or before March 30 of each year.

   6.  Money collected by the landlord or owner for service provided by a

 utility or an alternative seller to the tenants of a mobile home park or

 occupants of the dwellings may not be used to maintain, repair or replace

 utility lines or equipment serving the common area of the mobile home

 park or company town.

   7.  The owner of a company town who provides a utility service

 directly to the occupants of the town may charge the occupants their pro

 rata share of his cost of providing that service. Where meters are available,

 the pro rata share must be based on meter readings. Where meters are not

 available, the owner shall determine a fair allocation which must be

 explained in detail to the commission in the reports required by NRS

 704.960. The commission may modify the allocation in accordance with

 its regulations if it determines the owner’s method not to be fair. The

 commission shall adopt regulations governing the determination of the

 costs which an owner of a company town may recover for providing a


utility service directly to the occupants of that town and the terms and

conditions governing the provision of that service.

   8.  The landlord or owner shall itemize all charges for [utilities] utility

 services on all bills for rent or occupancy. [He] The landlord or owner

 may pass through to the tenant or occupant any increase in a rate for a

 utility service and shall pass through any decrease in a charge for a utility

 service as it becomes effective.

   9.  The landlord or owner shall retain for at least 3 years a copy of all

 billings for [utilities] utility services made to his tenants or the occupants

 of his dwellings and shall make these records available upon request to the

 commission for verification of charges made for [utilities.] utility services.

   10.  A landlord whose interest in a mobile home park terminates for

 any reason shall transfer to his successor in interest any balance remaining

 in the account for service charges for utilities. Evidence of the transfer

 must be filed with the commission.

   11.  The commission may at any time examine all books and records

 which relate to the landlord’s or owner’s purchase of or billing for a

 service provided by a utility or an alternative seller if he is charging the

 tenants of the mobile home park or occupants of the dwellings for that

 service.

   Sec. 13.  NRS 461A.230 is hereby amended to read as follows:

   461A.230  1.  Each mobile home park constructed after July 1, 1981,

 but before October 1, 1989, must provide direct electrical and gas service

 from [the] a utility or an alternative seller to each lot if those services are

 available.

   2.  Each mobile home park constructed after October 1, 1989, must

 provide direct:

   (a) Electrical and gas service from a public utility or an alternative

 seller, or a city, county or other governmental entity which provides

 electrical or gas service, to each lot if those services are available.

   (b) Water service from a public utility or a city, county or other

 governmental entity which provides water service, the provisions of NRS

 704.230 notwithstanding, to the park if that service is available.

   3.  In a county whose population is 400,000 or more, each mobile home

 park constructed after October 1, 1995, must provide direct water service,

 as provided in paragraph (b) of subsection 2, that is connected to

 individual meters for each lot. The individual meters must be installed in

 compliance with any uniform design and construction standards adopted

 by the public utility or city, county or other governmental entity which

 provides water service in the county.

   4.  As used in this section, “alternative seller” has the meaning

 ascribed to it in NRS 704.994.

   Sec. 14.  1.  This section and section 5 of this act become effective on

 July 1, 2001.

   2.  Sections 1 to 4, inclusive, and 6 to 13, inclusive, of this act become

 effective on October 1, 2001.

 

20~~~~~01