Senate Bill No. 526–Committee on Commerce and Labor

 

March 26, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Requires public utilities commission of Nevada to adopt regulations pertaining to affordability of rates for certain utility services. (BDR 58‑1121)

 

FISCAL NOTE:    Effect on Local Government: No.

                                 Effect on the State: Yes.

 

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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; requiring the public utilities commission of Nevada to adopt regulations pertaining to the affordability of rates for certain services provided by public utilities; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. Chapter 704 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2, 3 and 4 of this act.

1-3    Sec. 2.  The legislature hereby finds and declares that:

1-4    1.  Electricity and natural gas are basic necessities because the

1-5  residents of this state require electricity and natural gas to cool, heat and

1-6  light their homes;

1-7    2.  The residents of this state should not be required to bear an undue

1-8  economic burden to obtain electricity and natural gas; and

1-9    3.  It is the purpose and policy of the legislature in enacting the

1-10  provisions of sections 3 and 4 of this act to reduce the average cost of

1-11  certain components of electric service and natural gas service to ensure

1-12  that the residents of this state are able to obtain electricity and natural

1-13  gas at affordable rates.

1-14    Sec. 3.  1.  Notwithstanding the provisions of NRS 704.040 to

1-15  704.202, inclusive, the commission shall adopt regulations requiring the

1-16  following entities to provide rates for electric service which ensure the

1-17  basic affordability of that service for residential customers:

1-18    (a) Public utilities;

1-19    (b) Alternative sellers; and

1-20    (c) A provider of electric service pursuant to NRS 704.982.

1-21    2.  The regulations adopted by the commission pursuant to subsection

1-22  1 must establish a separate structure of rates for residential customers

1-23  which:

2-1    (a) Modifies only that component of the total rate for electric service

2-2  which is attributable to generation service;

2-3    (b) Is organized in such a manner that the cost of electric service

2-4  increases as the quantity of electricity consumed increases, beginning at

2-5  a level of consumption known as the baseline quantity of electric service;

2-6    (c) Reduces by at least 25 percent the cost of electric service for

2-7  residential customers of electric service who restrict the quantity of

2-8  electricity that they consume to the level of the structure of rates which

2-9  corresponds to the baseline quantity of electric service, when compared

2-10  to a structure of rates in which the cost of electric service does not

2-11  increase as the quantity of electricity consumed increases; and

2-12    (d) To the extent practicable, ensures that the total amount of money

2-13  expended for electric service by all the residential customers of electric

2-14  service in this state, when considered as a group, is the same as the total

2-15  amount of money that the group would expend for electric service

2-16  without the separate structure of rates established pursuant to this

2-17  section.

2-18    3.  As used in this section:

2-19    (a) “Alternative seller” has the meaning ascribed to it in NRS

2-20  704.967.

2-21    (b) “Baseline quantity of electric service” means the quantity of

2-22  generation service necessary to provide services of cooling, heating and

2-23  lighting for a dwelling of average size, taking into consideration

2-24  differences in the consumption of generation service that are attributable

2-25  to the changing of the seasons of the year and differences in climatic

2-26  zones.

2-27    (c) “Electric distribution utility” has the meaning ascribed to it in

2-28  NRS 704.970.

2-29    (d) “Electric service” has the meaning ascribed to it in NRS 704.971.

2-30    (e) “Generation service” has the meaning ascribed to it in NRS

2-31  704.972.

2-32    (f) “Quantity of generation service necessary to provide services of

2-33  cooling for a dwelling of average size” means the number of kilowatt

2-34  hours required to operate:

2-35      (1) An air-conditioning unit of average size and efficiency for a

2-36  duration sufficient to cool a dwelling of average size to a reasonable

2-37  temperature, as determined by the commission; and

2-38      (2) A refrigerator of average size and efficiency at a temperature

2-39  sufficient to maintain the freshness of food, as determined by the

2-40  commission.

2-41    (g) “Quantity of generation service necessary to provide services of

2-42  heating for a dwelling of average size” means the number of kilowatt

2-43  hours required to operate, in an area in which natural gas is not

2-44  available for such purposes:

2-45      (1) A heating unit of average size and efficiency for a duration

2-46  sufficient to heat a dwelling of average size to a reasonable temperature,

2-47  as determined by the commission; and

3-1       (2) A water-heating unit of average size and efficiency for a

3-2  duration sufficient to provide an adequate supply of hot water for a

3-3  dwelling of average size, as determined by the commission.

3-4    (h) “Quantity of generation service necessary to provide services of

3-5  lighting for a dwelling of average size” means the number of kilowatt

3-6  hours required to illuminate a dwelling of average size for a duration

3-7  and to a level of luminosity that is reasonable, as determined by the

3-8  commission.

3-9    Sec. 4.  1.  Notwithstanding the provisions of NRS 704.040 to

3-10  704.202, inclusive, the commission shall adopt regulations requiring the

3-11  following entities to provide rates for natural gas service which ensure

3-12  the basic affordability of that service for residential customers:

3-13    (a) Public utilities; and

3-14    (b) Alternative sellers.

3-15    2.  The regulations adopted by the commission pursuant to subsection

3-16  1 must establish a separate structure of rates for residential customers of

3-17  natural gas service which:

3-18    (a) Modifies only that component of the total rate for natural gas

3-19  service which is attributable to the cost of the commodity of natural gas;

3-20    (b) Is organized in such a manner that the cost of natural gas service

3-21  increases as the quantity of natural gas consumed increases, beginning

3-22  at a level of consumption known as the baseline quantity of natural gas

3-23  service;

3-24    (c) Reduces by at least 25 percent the cost of natural gas service for

3-25  residential customers of natural gas service who restrict the quantity of

3-26  natural gas that they consume to the level of the structure of rates which

3-27  corresponds to the baseline quantity of natural gas service, when

3-28  compared to a structure of rates in which the cost of natural gas service

3-29  does not increase as the quantity of natural gas consumed increases; and

3-30    (d) To the extent practicable, ensures that the total amount of money

3-31  expended for natural gas service by all the residential customers of

3-32  natural gas service in this state, when considered as a group, is the same

3-33  as the total amount of money that the group would expend for natural

3-34  gas service without the separate structure of rates established pursuant to

3-35  this section.

3-36    3.  As used in this section:

3-37    (a) “Alternative seller” has the meaning ascribed to it in NRS

3-38  704.994.

3-39    (b) “Baseline quantity of natural gas service” means the quantity of

3-40  natural gas service necessary to provide services of heating for a dwelling

3-41  of average size, taking into consideration differences in the consumption

3-42  of natural gas service that are attributable to the changing of the seasons

3-43  of the year and differences in climatic zones.

3-44    (c) “Quantity of natural gas service necessary to provide services of

3-45  heating for a dwelling of average size” means the number of therms

3-46  required to operate, in an area in which natural gas is available for such

3-47  purposes:

4-1       (1) A heating unit of average size and efficiency for a duration

4-2  sufficient to heat a dwelling of average size to a reasonable temperature,

4-3  as determined by the commission; and

4-4       (2) A water-heating unit of average size and efficiency for a

4-5  duration sufficient to provide an adequate supply of hot water for a

4-6  dwelling of average size, as determined by the commission.

4-7    (d) “Therm” means a measure of heat equal to 100,000 British

4-8  thermal units.

4-9    Sec. 5.  This act becomes effective upon passage and approval.

 

4-10  H