requires two-thirds majority vote (§§ 1, 4)                                                                                                            

                                                                                                  

 

Assembly Bill No. 32–Committee on Commerce and Labor

 

(On Behalf of the Legislative Committee on Local Government Taxes and Finance)

 

Prefiled January 30, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions governing payment and collection of certain taxes, fees and assessments relating to purchase of natural gas or energy, capacity or ancillary services under certain circumstances. (BDR 58‑626)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: No.

 

~

 

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

 

AN ACT relating to energy; requiring a customer of a public utility or alternative seller to pay certain taxes, fees and assessments relating to the purchase of natural gas or energy, capacity or ancillary services under certain circumstances; providing a penalty; 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

1-2  thereto a new section to read as follows:

1-3  1.  Each public utility that elects to be regulated under an

1-4  alternative plan of regulation pursuant to NRS 704.997 shall

1-5  collect from each customer who is purchasing natural gas from

1-6  the public utility under the alternative plan of regulation any tax,

1-7  fee or assessment that would be due a governmental entity had the

1-8  customer continued to purchase natural gas from a public utility

1-9  that was regulated fully by the Commission pursuant to NRS

1-10  704.001 to 704.960, inclusive.

2-1  2.  Each alternative seller shall collect from each customer

2-2  who is purchasing natural gas from the alternative seller any tax,

2-3  fee or assessment that would be due a governmental entity had the

2-4  customer continued to purchase natural gas from a public utility

2-5  that was regulated fully by the Commission pursuant to NRS

2-6  704.001 to 704.960, inclusive.

2-7  3.  Each person who is responsible for billing a customer who

2-8  is purchasing natural gas from a public utility under an

2-9  alternative plan of regulation or from an alternative seller shall

2-10  ensure that the amount which the customer must pay pursuant to

2-11  this section is set forth as a separate item or entry on each bill

2-12  submitted to the customer.

2-13      Sec. 2.  NRS 704.993 is hereby amended to read as follows:

2-14      704.993  As used in NRS 704.993 to 704.999, inclusive, and

2-15  section 1 of this act, unless the context otherwise requires, the

2-16  words and terms defined in NRS 704.994, 704.995 and 704.996

2-17  have the meanings ascribed to them in those sections.

2-18      Sec. 3.  NRS 704.997 is hereby amended to read as follows:

2-19      704.997  1.  [Upon] Except as otherwise provided in this

2-20  section, upon the receipt of a specific request for an exemption by a

2-21  public utility that supplies natural gas, the Commission may, to the

2-22  extent it deems necessary, exempt any service offered by the public

2-23  utility from the strict application of one or more provisions of this

2-24  chapter. Such an exemption may be made only upon a determination

2-25  by the Commission, after notice and an opportunity for a hearing,

2-26  that the service is competitive, discretionary or potentially

2-27  competitive.

2-28      2.  The Commission shall adopt regulations necessary to

2-29  establish an alternative plan of regulation of a public utility that

2-30  supplies natural gas and that is otherwise subject to regulation

2-31  pursuant to the provisions of this chapter. The alternative plan may

2-32  include, but is not limited to, provisions that:

2-33      (a) Allow adjustment of the rates charged by the public utility

2-34  during the period in which the utility elects the alternative plan of

2-35  regulation.

2-36      (b) [Specify] Except as otherwise provided in this section,

2-37  specify the provisions of this chapter that do not apply to a public

2-38  utility which elects to be regulated under the alternative plan.

2-39      (c) Provide for flexibility of pricing for services that are

2-40  discretionary, competitive or potentially competitive.

2-41      3.  A public utility that elects to be regulated under the

2-42  alternative plan established pursuant to this section [is] :

2-43      (a) Remains subject to the provisions of NRS 704.033 and

2-44  704.035 and section 1 of this act; and

3-1  (b) Is not subject to the remaining provisions of this chapter to

3-2  the extent specified pursuant to this section.

3-3  4.  In providing a potentially competitive service, an affiliate of

3-4  a provider of a noncompetitive service may use the name or logo, or

3-5  both, of the provider of noncompetitive service.

3-6  5.  It is unlawful for an alternative seller to sell any service

3-7  relating to the supply of natural gas to a customer for his

3-8  consumption within this state without first having obtained a license

3-9  from the Commission to do so.

3-10      Sec. 4.  Chapter 704B of NRS is hereby amended by adding

3-11  thereto a new section to read as follows:

3-12      1.  If the Commission approves an application that is filed

3-13  pursuant to NRS 704B.310, the Commission shall order the

3-14  eligible customer to pay:

3-15      (a) Its share of the annual assessment levied pursuant to NRS

3-16  704.033 to the Commission and the Bureau of Consumer

3-17  Protection in the Office of the Attorney General; and

3-18      (b) Any other tax, fee or assessment that would be due a

3-19  governmental entity had the eligible customer continued to

3-20  purchase energy, capacity or ancillary services from the electric

3-21  utility.

3-22      2.  Each person or entity that is responsible for billing an

3-23  eligible customer shall ensure that the amount which the eligible

3-24  customer must pay pursuant to this section is set forth as a

3-25  separate item or entry on each bill submitted to the eligible

3-26  customer.

3-27      Sec. 5.  NRS 704B.310 is hereby amended to read as follows:

3-28      704B.310  1.  An eligible customer that is purchasing electric

3-29  service from an electric utility shall not purchase energy, capacity or

3-30  ancillary services from a provider of new electric resources and an

3-31  eligible customer that is purchasing energy, capacity or ancillary

3-32  services from a provider of new electric resources shall not purchase

3-33  energy, capacity or ancillary services from another provider unless:

3-34      (a) The eligible customer files an application with the

3-35  Commission not later than 180 days before the date on which the

3-36  eligible customer intends to begin purchasing energy, capacity or

3-37  ancillary services from the provider; and

3-38      (b) The Commission approves the application by a written order

3-39  issued in accordance with the provisions of this section and

3-40  NRS 704B.320.

3-41  The date on which the eligible customer intends to begin purchasing

3-42  energy, capacity or ancillary services from the provider must not be

3-43  sooner than the date on which the provider is authorized by NRS

3-44  704B.300 to begin selling energy, capacity or ancillary services to

3-45  the eligible customer.

4-1  2.  Except as otherwise provided in subsection 3, each

4-2  application filed pursuant to this section must include:

4-3  (a) Information demonstrating that the person filing the

4-4  application is an eligible customer;

4-5  (b) Information demonstrating that the proposed provider will

4-6  provide energy, capacity or ancillary services from a new electric

4-7  resource;

4-8  (c) Information concerning the terms and conditions of the

4-9  proposed transaction that is necessary for the Commission to

4-10  evaluate the impact of the proposed transaction on customers and

4-11  the public interest, including, without limitation, information

4-12  concerning the duration of the proposed transaction and the amount

4-13  of energy, capacity or ancillary services to be purchased from the

4-14  provider; and

4-15      (d) Any other information required pursuant to the regulations

4-16  adopted by the Commission.

4-17      3.  Except as otherwise provided in NRS 704B.320, the

4-18  Commission shall not require the eligible customer or provider to

4-19  disclose:

4-20      (a) The price that is being paid by the eligible customer to

4-21  purchase energy, capacity or ancillary services from the provider; or

4-22      (b) Any other terms or conditions of the proposed transaction

4-23  that the Commission determines are commercially sensitive.

4-24      4.  The Commission shall provide public notice of the

4-25  application of the eligible customer and an opportunity for a hearing

4-26  on the application in a manner that is consistent with the provisions

4-27  of NRS 703.320 and the regulations adopted by the Commission.

4-28      5.  The Commission shall approve the application of the eligible

4-29  customer unless the Commission finds that the proposed transaction:

4-30      (a) Will be contrary to the public interest; or

4-31      (b) Does not comply with the provisions of NRS 704B.320, if

4-32  those provisions apply to the proposed transaction.

4-33      6.  In determining whether the proposed transaction will be

4-34  contrary to the public interest, the Commission shall consider,

4-35  without limitation:

4-36      (a) Whether the electric utility that has been providing electric

4-37  service to the eligible customer will be burdened by increased costs

4-38  as a result of the proposed transaction or whether any remaining

4-39  customer of the electric utility will pay increased costs for electric

4-40  service as a result of the proposed transaction;

4-41      (b) Whether the proposed transaction will impair system

4-42  reliability or the ability of the electric utility to provide electric

4-43  service to its remaining customers; and

4-44      (c) Whether the proposed transaction will add energy, capacity

4-45  or ancillary services to the supply in this state.

5-1  7.  If the Commission approves the application of the eligible

5-2  customer:

5-3  (a) The eligible customer shall not begin purchasing energy,

5-4  capacity or ancillary services from the provider pursuant to the

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

5-6  the application was filed; and

5-7  (b) The Commission shall order such terms, conditions and

5-8  payments as the Commission deems necessary and appropriate to

5-9  ensure that the proposed transaction will not be contrary to the

5-10  public interest. Such terms, conditions and payments:

5-11          (1) Must be fair and nondiscriminatory as between the

5-12  eligible customer and the remaining customers of the electric utility;

5-13  and

5-14          (2) Must include, without limitation[, payment] :

5-15             (I) Payment by the eligible customer to the electric utility

5-16  of the eligible customer’s load-share portion of any unrecovered

5-17  balance in the deferred accounts of the electric utility[.] ; and

5-18             (II) Payment by the eligible customer of the annual

5-19  assessment and any other tax, fee or assessment required by

5-20  section 4 of this act.

5-21      8.  If the Commission does not enter a final order on the

5-22  application of the eligible customer within 90 days after the date on

5-23  which the application was filed with the Commission:

5-24      (a) The application shall be deemed to be approved by the

5-25  Commission; and

5-26      (b) The eligible customer shall not begin purchasing energy,

5-27  capacity or ancillary services from the provider pursuant to the

5-28  proposed transaction sooner than 180 days after the date on which

5-29  the application was filed.

5-30      Sec. 6.  This act becomes effective on July 1, 2003.

 

5-31  H