Senate Bill No. 390–Committee on Commerce and Labor

 

March 19, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises certain provisions relating to provision of electric service. (BDR 58‑966)

 

FISCAL NOTE:            Effect on Local Government: No.

                                                Effect on the State: No.

 

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

 

AN ACT relating to public utilities; revising the provisions relating to the circumstances under which a vertically integrated electric utility is required to provide certain electric services through an affiliate; revising the provisions relating to the rates charged by certain electric utilities after the date on which customers may begin obtaining potentially competitive services 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:

 

1-1    Section 1. NRS 704.982 is hereby amended to read as follows:

1-2    704.982  1.  The commission shall designate a vertically integrated

1-3  electric utility or its successor electric distribution utility to provide electric

1-4  service to customers who are unable to obtain electric service from an

1-5  alternative seller or who fail to select an alternative seller. The provider so

1-6  designated by the commission is obligated to provide electric service to the

1-7  customers. Electric service provided by the utility pursuant to this section

1-8  shall be deemed to be a noncompetitive service for which the utility may

1-9  recover its costs pursuant to NRS 704.001 to 704.655, inclusive, 704.701

1-10  to 704.751, inclusive, and 704.800 to 704.900, inclusive.

1-11    2.  The rate that the designated provider of electric service must charge

1-12  a customer for the provision of electric service pursuant to subsection 1 is

1-13  the total rate established for that class of customer by the commission

1-14  pursuant to NRS 704.9823.

1-15    3.  Upon a finding by the commission that the public interest will be

1-16  promoted, the commission may prescribe alternate methods for providing

1-17  electric service to those customers described in subsection 1. The alternate

1-18  methods may include, but are not limited to, the direct assignment of

1-19  customers to alternative sellers or electric distribution utilities or a process

1-20  of competitive bidding for the right to provide electric service to the

2-1  designated customers, including, without limitation, an auction conducted

2-2  pursuant to NRS 704.9829. Any alternate methods prescribed by the

2-3  commission pursuant to this subsection may not go into effect before
July 1, 2001.

2-4    4.  A customer who has obtained generation, aggregation or any other

2-5  potentially competitive service for at least 30 continuous days from an

2-6  alternative seller after March 1, 2000, or such other date that is determined

2-7  to be in the public interest by the governor pursuant to NRS 704.976, may

2-8  reacquire service from the designated provider of electric service pursuant

2-9  to tariffs approved by the commission. The commission shall establish

2-10  minimum terms and conditions under which electric service must be

2-11  provided pursuant to this section, including a minimum period during

2-12  which a customer must be obligated to pay for the electric service from the

2-13  assigned provider. The price charged for electric service for a particular

2-14  group of customers must reflect the incremental cost of serving the group.

2-15    5.  [If the designated provider of the electric service pursuant to

2-16  subsection 1 is a vertically integrated electric utility, the utility shall

2-17  provide the electric service on or after July 1, 2001, only through an

2-18  affiliate whose sole business activity is the provision of electric service.

2-19    6.  Except upon the application of the designated provider to reduce the

2-20  total rate for any class of customers pursuant to NRS 704.9823, the] The

2-21  commission shall not initiate or conduct any proceedings to adjust the

2-22  rates, earnings, rate base or rate of return of the designated provider of

2-23  electric service during the period in which the provider is providing that

2-24  service to customers pursuant to this section.

2-25    Sec. 2.  NRS 704.9823 is hereby amended to read as follows:

2-26    704.9823  1.  The commission shall, for each class of customers of

2-27  electric service in this state, establish a total rate for the components of

2-28  electric service that are necessary to provide electric service to customers

2-29  in this state pursuant to subsection 1 of NRS 704.982. The total rate for

2-30  each class must be established at and must not exceed the sum of:

2-31    (a) The total rate for each class of customers of electric service in this

2-32  state which [is] was in effect on July 1, 1999[, except that the commission

2-33  shall modify the rates to account for the effects of any decisions by the

2-34  commission relating to any cases filed with the commission before October

2-35  1, 1999, which involve the use of deferred accounting. Upon approval by

2-36  the commission, the provider designated pursuant to subsection 1 of NRS

2-37  704.982 may reduce the total rate for any class of customers.] ; and

2-38    (b) Any rate approved by the commission pursuant to subsection 6 of

2-39  NRS 704.110 on or after July 1, 1999, or any other rate to recover the

2-40  increased cost of purchased fuel or power approved by the commission

2-41  on or after July 1, 1999.

2-42    2.  The total rates established pursuant to [this subsection] subsection 1

2-43  do not apply to any customer who [obtains] has obtained generation,

2-44  aggregation or any other potentially competitive service from an alternative

2-45  seller.

 

 

3-1    Sec. 3.  Section 17 of chapter 600, Statutes of Nevada 1999, at page

3-2  3269, is hereby amended to read as follows:

3-3    Sec. 17.  NRS 704.982 is hereby amended to read as follows:

3-4    704.982 1.  The commission shall designate [a vertically

3-5  integrated electric utility or its successor] an electric distribution

3-6  utility to provide electric service to customers who are unable to

3-7  obtain electric service from an alternative seller or who fail to select

3-8  an alternative seller. The provider so designated by the commission is

3-9  obligated to provide electric service to the customers. Electric service

3-10  provided by the utility pursuant to this section shall be deemed to be a

3-11  noncompetitive service for which the utility may recover its costs

3-12  pursuant to NRS 704.001 to 704.655, inclusive, 704.701 to 704.751,

3-13  inclusive, and 704.800 to 704.900, inclusive.

3-14    2.  [The rate that the designated provider of electric service must

3-15  charge a customer for the provision of electric service pursuant to

3-16  subsection 1 is the total rate established for that class of customer by

3-17  the commission pursuant to section 4 of this act.

3-18    3.] Upon a finding by the commission that the public interest will

3-19  be promoted, the commission may prescribe alternate methods for

3-20  providing electric service to those customers described in subsection

3-21  1. The alternate methods may include, but are not limited to, the direct

3-22  assignment of customers to alternative sellers or other electric

3-23  distribution utilities or a process of competitive bidding for the right

3-24  to provide electric service to the designated customers, including,

3-25  without limitation, an auction conducted pursuant to section 6 of this

3-26  act. [Any alternate methods prescribed by the commission pursuant to

3-27  this subsection may not go into effect before July 1, 2001.

3-28    4.] 3.  A customer who has obtained generation, aggregation or

3-29  any other potentially competitive service for at least 30 continuous

3-30  days from an alternative seller [after March 1, 2000, or such other

3-31  date that is determined to be in the public interest by the governor

3-32  pursuant to NRS 704.976,] may reacquire service from the

3-33  designated provider of electric service pursuant to tariffs approved

3-34  by the commission. The commission shall establish minimum terms

3-35  and conditions under which electric service must be provided pursuant

3-36  to this section, including a minimum period during which a customer

3-37  must be obligated to pay for the electric service from the assigned

3-38  provider. The price charged for electric service for a particular group

3-39  of customers must reflect the incremental cost of serving the group.

3-40    [5.  The commission shall not initiate or conduct any proceedings

3-41  to adjust the rates, earnings, rate base or rate of return of the

3-42  designated provider of electric service during the period in which the

3-43  provider is providing that service to customers pursuant to this

3-44  section.]

3-45    Sec. 4.  Section 21 of chapter 600, Statutes of Nevada 1999, at page

3-46  3272, is hereby amended to read as follows:

3-47  Sec. 21.  On or before March 1, 2000, or such other date that is

3-48  determined to be in the public interest by the governor pursuant to

3-49  NRS 704.976, the commission shall, for the purposes of NRS

4-1  704.986, establish for each class of customers of electric service in

4-2  this state the rate for each component and a total rate for electric

4-3  services for customers based on the cost to provide electric service to

4-4  each class of customers in this state. [The total rate established for

4-5  each class of customers pursuant to this section must be the same as

4-6  the total rate for each class of customers that is in effect on June 1,

4-7  1999.]

4-8    Sec. 5. This act becomes effective upon passage and approval.

 

4-9  H