Senate Bill No. 211–Committee on Commerce and Labor

 

CHAPTER..........

 

AN ACT relating to electricity; revising the provisions governing the sale of electricity and the provision of transmission and distribution services by the Colorado River commission; requiring certain public utilities to make their electric distribution facilities and services available to the Colorado River commission under certain circumstances; requiring such utilities to file tariffs concerning use of their electric distribution facilities and services by the Colorado River commission; 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. Chapter 704 of NRS is hereby amended by adding thereto a

 new section to read as follows:

   1.  The Colorado River commission may sell electricity and provide

 transmission service or distribution service, or both, only to meet the

 existing and future requirements of:

   (a) Any customer that the Colorado River commission on July 16,

 1997, was serving or had a contract to serve; and

   (b) The Southern Nevada Water Authority and its member agencies

 for their water and wastewater operations,

without being subject to the jurisdiction of the public utilities commission

 of Nevada.

   2.  The public utilities commission of Nevada shall establish a just

 and reasonable tariff for such electric distribution service to be provided

 by an electric utility that primarily serves densely populated counties to

 the Colorado River commission for its sale of electricity or electric

 distribution services, or both, to any customer that the Colorado River

 commission on July 16, 1997, was serving or had a contract to serve,

 and to the Southern Nevada Water Authority and its member agencies to

 meet the existing and future requirements for their water and

 wastewater operations.

   3.  An electric utility that primarily serves densely populated counties

 shall provide electric distribution service pursuant to the tariff required

 by subsection 2.

   4.  As used in this section:

   (a) “Electric utility that primarily serves densely populated counties”

 means an electric utility that, with regard to the provision of electric

 service, derives more of its annual gross operating revenue in this state

 from customers located in counties whose population is 400,000 or more

 than it does from customers located in counties whose population is less

 than 400,000.

   (b) “Southern Nevada Water Authority” has the meaning ascribed to

 it in NRS 538.041.

   Sec. 2. NRS 538.181 is hereby amended to read as follows:

   538.181  1.  The commission shall hold and administer all rights and

 benefits pertaining to the distribution of the power and water mentioned in

 NRS 538.041 to 538.251, inclusive, for the State of Nevada and, except as

 otherwise provided in NRS 538.186, may enter into contracts relating to

that power and water, including the transmission and other distribution

services, on such terms as the commission determines.

   2.  Every applicant, except a federal or state agency or political

 subdivision, for power or water to be used within the State of Nevada

 must, before the application is approved, provide an indemnifying bond by

 a corporation qualified pursuant to the laws of this state, or other

 collateral, approved by the state board of examiners, payable to the State

 of Nevada in such sum and in such manner as the commission may

 require, conditioned for the full and faithful performance of the lease,

 sublease, contract or other agreement.

   3.  The power and water must not be sold for less than the actual cost to

 the State of Nevada.

   4.  Except as otherwise provided in subsection 5, before any such sale

 or lease is made, a notice of it must be advertised in two papers of general

 circulation published in the State of Nevada at least once a week for 2

 weeks. The commission shall require any person desiring to make

 objection thereto to file the objection with the commission within 10 days

 after the date of the last publication of the notice. If any objection is filed,

 the commission shall set a time and place for a hearing of the objection not

 more than 30 days after the date of the last publication of the notice.

   5.  The provisions of subsection 4 do not apply to:

   (a) Any contract by the commission to sell supplemental power to a

 holder of a long-term firm contract with the state for power if the

 supplemental power is procured by the commission from a prearranged

 source and is secured by the holder for his own use; or

   (b) Any agreement by the commission to sell short-term or interruptible

 power on short notice for immediate acceptance to a holder of a long-term

 firm contract with the state for power who can take delivery of the short

-term or interruptible power when it is available.

   6.  Except as otherwise provided in subsection 2 of NRS 538.251, any

 such lease, sublease, contract or sale of the water or power is not binding

 upon the State of Nevada until ratified and approved by the governor and,

 where required by federal law, until approved by the United States.

   7.  The commission shall, upon the expiration of a contract for the sale

 of power which is in effect on July 1, 1993, offer to the purchaser the right

 to renew the contract. If the commission is unable to supply the amount of

 power set forth in the contract because of a shortage of power available for

 sale, it shall reduce, on a pro rata basis, the amount of power it is required

 to sell pursuant to the renewed contract.

   8.  [Notwithstanding] Except as otherwise provided in section 1 of this

 act, notwithstanding any provision of chapter 704 of NRS, any purchase

 of:

   (a) Power or water for distribution or exchange, and any subsequent

 distribution or exchange of power or water by the commission; or

   (b) Water for distribution or exchange, and any subsequent distribution

 or exchange of water by any entity to which or with which the commission

 has contracted the water,

is not subject to regulation by the public utilities commission of Nevada.

   Sec. 3. The public utility shall file with the public utilities commission

of Nevada the tariffs required by section 1 of this act not later than

October 1, 2001.

   Sec. 4. This act becomes effective upon passage and approval.

 

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