Assembly Bill No. 139–Committee on Commerce and Labor

 

(On Behalf of the Public Utilities Commission)

 

February 14, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes concerning certain providers of utility service. (BDR 58‑494)

 

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 utilities; making various changes concerning certain providers of utility service; exempting from the jurisdiction of the Public Utilities Commission of Nevada certain persons who are engaged in the business of furnishing water or services for the disposal of sewage in certain large counties; increasing the time allowed for entry of a final order for an application relating to the sale of energy, capacity or ancillary services by a provider of new electric resources; 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 704.030 is hereby amended to read as follows:

1-2  704.030  “Public utility” or “utility” does not include:

1-3  1.  Persons engaged in the production and sale of natural gas,

1-4  other than sales to the public, or engaged in the transmission of

1-5  natural gas , other than as a common carrier transmission or

1-6  distribution line or system.

1-7  2.  Persons engaged in the business of furnishing, for

1-8  compensation, water or services for the disposal of sewage, or both,

1-9  to persons within this state if:

1-10      (a) They serve 25 persons or less; and

2-1  (b) Their gross sales for water or services for the disposal of

2-2  sewage, or both, amounted to $5,000 or less during the immediately

2-3  preceding 12 months.

2-4  3. Persons engaged in the business of furnishing, for

2-5  compensation, water or services for the disposal of sewage, or

2-6  both, to persons within this state if:

2-7  (a) They serve 15 persons or less; and

2-8  (b) They operate in a county whose population is 400,000 or

2-9  more.

2-10      4.  Persons not otherwise engaged in the business of furnishing,

2-11  producing or selling water or services for the disposal of sewage, or

2-12  both, but who sell or furnish water or services for the disposal of

2-13  sewage, or both, as an accommodation in an area where water or

2-14  services for the disposal of sewage, or both, are not available from a

2-15  public utility, cooperative corporations and associations , or political

2-16  subdivisions engaged in the business of furnishing water or services

2-17  for the disposal of sewage, or both, for compensation, to persons

2-18  within the political subdivision.

2-19      [4.] 5. Persons who are engaged in the production and sale of

2-20  energy, including electricity, to public utilities, cities, counties or

2-21  other entities which are reselling the energy to the public.

2-22      [5.] 6. Persons who are subject to the provisions of NRS

2-23  590.465 to 590.645, inclusive.

2-24      [6.] 7. Persons who are engaged in the sale or use of special

2-25  fuel as defined in NRS 366.060.

2-26      [7.] 8. Persons who provide water from water storage,

2-27  transmission and treatment facilities if those facilities are for the

2-28  storage, transmission or treatment of water from mining operations.

2-29      Sec. 2.  NRS 704.669 is hereby amended to read as follows:

2-30      704.669  1.  Except as otherwise provided in subsection 2,

2-31  every corporation or other person who sells geothermal energy to

2-32  the public is affected with a public interest, is a public utility , and is

2-33  subject to the jurisdiction and control of the Commission. The

2-34  authority of the Commission to regulate such persons is limited to

2-35  the authority granted by this section and NRS 704.033 and 704.035.

2-36      2.  This section does not apply to any corporation or other

2-37  person described in subsection [4] 5 of NRS 704.030 or to any

2-38  political subdivision of the State authorized to sell energy to the

2-39  public.

2-40      3.  The Commission shall adopt just and reasonable regulations

2-41  governing the sale of energy from geothermal resources to the

2-42  public. The regulations must provide for a system of operating

2-43  permits which:

2-44      (a) May not be denied because the area which the applicant

2-45  proposes to serve is already being served by a gas or electric utility.

3-1  (b) May not convey an exclusive right to supply geothermal

3-2  energy in the area which the applicant proposes to serve.

3-3  (c) Specify in each case the geographic area in which the

3-4  applicant reasonably can provide the services authorized in the

3-5  permit.

3-6  (d) Require the applicant to enter into a contract with each

3-7  customer served by the utility. The form and scope of the contract

3-8  must be subject to review and approval of the Commission. The

3-9  contract must specify at least:

3-10          (1) The period of time during which service will be provided.

3-11  The contract must provide for a period of at least 3 years unless such

3-12  a provision is expressly waived by the customer.

3-13          (2) The rates or the formula for determining rates to be

3-14  charged during the term of the contract.

3-15          (3) That the utility will submit to binding arbitration,

3-16  pursuant to chapter 38 of NRS, matters relating to damages suffered

3-17  by the customer as a result of a disruption in service and that in any

3-18  such arbitration, the utility is liable for damages unless it establishes

3-19  that the disruption was caused by circumstances beyond its control,

3-20  or another affirmative defense, or establishes that it was not

3-21  negligent.

3-22      4.  Before issuing an operating permit , the Commission must

3-23  find that:

3-24      (a) The applicant is fit, willing and able to provide the services

3-25  authorized in the permit.

3-26      (b) The applicant has tested the geothermal reservoir to

3-27  determine whether it appears to be capable of providing sufficient

3-28  energy to supply the intended uses.

3-29      (c) The system which the applicant intends to use to produce

3-30  and distribute the heat meets appropriate standards.

3-31      5.  The Commission has continuing authority to regulate the

3-32  utilities described in this section to ensure that each utility adheres

3-33  to the conditions set forth in its operating permit and that the utility

3-34  provides adequate services.

3-35      Sec. 3.  NRS 704B.310 is hereby amended to read as follows:

3-36      704B.310  1.  An eligible customer that is purchasing electric

3-37  service from an electric utility shall not purchase energy, capacity or

3-38  ancillary services from a provider of new electric resources and an

3-39  eligible customer that is purchasing energy, capacity or ancillary

3-40  services from a provider of new electric resources shall not purchase

3-41  energy, capacity or ancillary services from another provider unless:

3-42      (a) The eligible customer files an application with the

3-43  Commission not later than 180 days before the date on which the

3-44  eligible customer intends to begin purchasing energy, capacity or

3-45  ancillary services from the provider; and

4-1  (b) The Commission approves the application by a written order

4-2  issued in accordance with the provisions of this section and

4-3  NRS 704B.320.

4-4  The date on which the eligible customer intends to begin purchasing

4-5  energy, capacity or ancillary services from the provider must not be

4-6  sooner than the date on which the provider is authorized by NRS

4-7  704B.300 to begin selling energy, capacity or ancillary services to

4-8  the eligible customer.

4-9  2.  Except as otherwise provided in subsection 3, each

4-10  application filed pursuant to this section must include:

4-11      (a) Information demonstrating that the person filing the

4-12  application is an eligible customer;

4-13      (b) Information demonstrating that the proposed provider will

4-14  provide energy, capacity or ancillary services from a new electric

4-15  resource;

4-16      (c) Information concerning the terms and conditions of the

4-17  proposed transaction that is necessary for the Commission to

4-18  evaluate the impact of the proposed transaction on customers and

4-19  the public interest, including, without limitation, information

4-20  concerning the duration of the proposed transaction and the amount

4-21  of energy, capacity or ancillary services to be purchased from the

4-22  provider; and

4-23      (d) Any other information required pursuant to the regulations

4-24  adopted by the Commission.

4-25      3.  Except as otherwise provided in NRS 704B.320, the

4-26  Commission shall not require the eligible customer or provider to

4-27  disclose:

4-28      (a) The price that is being paid by the eligible customer to

4-29  purchase energy, capacity or ancillary services from the provider; or

4-30      (b) Any other terms or conditions of the proposed transaction

4-31  that the Commission determines are commercially sensitive.

4-32      4.  The Commission shall provide public notice of the

4-33  application of the eligible customer and an opportunity for a hearing

4-34  on the application in a manner that is consistent with the provisions

4-35  of NRS 703.320 and the regulations adopted by the Commission.

4-36      5.  The Commission shall approve the application of the eligible

4-37  customer unless the Commission finds that the proposed transaction:

4-38      (a) Will be contrary to the public interest; or

4-39      (b) Does not comply with the provisions of NRS 704B.320, if

4-40  those provisions apply to the proposed transaction.

4-41      6.  In determining whether the proposed transaction will be

4-42  contrary to the public interest, the Commission shall consider,

4-43  without limitation:

4-44      (a) Whether the electric utility that has been providing electric

4-45  service to the eligible customer will be burdened by increased costs

5-1  as a result of the proposed transaction or whether any remaining

5-2  customer of the electric utility will pay increased costs for electric

5-3  service as a result of the proposed transaction;

5-4  (b) Whether the proposed transaction will impair system

5-5  reliability or the ability of the electric utility to provide electric

5-6  service to its remaining customers; and

5-7  (c) Whether the proposed transaction will add energy, capacity

5-8  or ancillary services to the supply in this state.

5-9  7.  If the Commission approves the application of the eligible

5-10  customer:

5-11      (a) The eligible customer shall not begin purchasing energy,

5-12  capacity or ancillary services from the provider pursuant to the

5-13  proposed transaction sooner than 180 days after the date on which

5-14  the application was filed; and

5-15      (b) The Commission shall order such terms, conditions and

5-16  payments as the Commission deems necessary and appropriate to

5-17  ensure that the proposed transaction will not be contrary to the

5-18  public interest. Such terms, conditions and payments:

5-19          (1) Must be fair and nondiscriminatory as between the

5-20  eligible customer and the remaining customers of the electric utility;

5-21  and

5-22          (2) Must include, without limitation, payment by the eligible

5-23  customer to the electric utility of the eligible customer’s load-share

5-24  portion of any unrecovered balance in the deferred accounts of the

5-25  electric utility.

5-26      8.  If the Commission does not enter a final order on the

5-27  application of the eligible customer within [90] 150 days after the

5-28  date on which the application was filed with the Commission:

5-29      (a) The application shall be deemed to be approved by the

5-30  Commission; and

5-31      (b) The eligible customer shall not begin purchasing energy,

5-32  capacity or ancillary services from the provider pursuant to the

5-33  proposed transaction sooner than 180 days after the date on which

5-34  the application was filed.

5-35      Sec. 4.  NRS 459A.010 is hereby amended to read as follows:

5-36      459A.010  As used in this chapter, “public utility” means any

5-37  person who furnishes electricity to other persons. The term includes

5-38  municipal utilities , but does not include persons who furnish

5-39  electricity only in emergencies or persons described in subsection

5-40  [4] 5 of NRS 704.030.

5-41      Sec. 5.  1.  If, on the effective date of this act, a person:

5-42      (a) Is engaged in the business of furnishing, for compensation,

5-43  water or services for the disposal of sewage, or both, to persons

5-44  within this state;

6-1  (b) Holds a certificate of public convenience and necessity

6-2  issued by the Commission; and

6-3  (c) Is not included in the definition of a “public utility” or

6-4  “utility” pursuant to subsection 3 of NRS 704.030, as amended by

6-5  this act,

6-6  the person shall surrender the person’s certificate of public

6-7  convenience and necessity to the Commission in accordance with

6-8  the provisions of this section.

6-9  2.  To surrender the person’s certificate of public convenience

6-10  and necessity to the Commission, the person shall file with the

6-11  Commission:

6-12      (a) The certificate of public convenience and necessity;

6-13      (b) A notification of the surrender; and

6-14      (c) A report of revenues for the immediately preceding 12

6-15  months certifying that the person is not included in the definition of

6-16  a “public utility” or “utility” pursuant to subsection 3 of NRS

6-17  704.030, as amended by this act.

6-18      3.  Not later than 5 days after the person makes the filing with

6-19  the Commission as required by subsection 2, the person shall send

6-20  to each customer a notification that the person has surrendered the

6-21  person’s certificate of public convenience and necessity to the

6-22  Commission in accordance with the provisions of this section. Upon

6-23  sending the notification to each customer, the person is not subject

6-24  to any of the provisions of chapters 703 and 704 of NRS.

6-25      4.  As used in this section, “Commission” means the Public

6-26  Utilities Commission of Nevada.

6-27      Sec. 6.  This act becomes effective upon passage and approval.

 

6-28  H