(Reprinted with amendments adopted on April 18, 2003)

 

Senate Bill No. 125–Committee on Commerce and Labor

 

(On Behalf of the Public Utilities Commission)

 

February 13, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes relating to utilities and providers of new electric resources. (BDR 58‑488)

 

FISCAL NOTE:  Effect on Local Government: No.

                           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 utilities; authorizing certain natural gas utilities to use deferred accounting for certain purposes; revising provisions governing the notice that must be provided for an application to obtain a permit for a utility facility; revising certain procedural requirements concerning applications to purchase energy, capacity or ancillary services from a provider of new electric resources; revising various provisions relating to transactions between eligible customers and providers 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 703.330 is hereby amended to read as follows:

1-2  703.330  1.  A complete record must be kept of all hearings

1-3  before the Commission. All testimony at such hearings must be

1-4  taken down by the stenographer appointed by the Commission [,] or,

1-5  under the direction of any competent person appointed by the

1-6  Commission, must be reported by sound recording equipment in the

1-7  manner authorized for reporting testimony in district courts. The

1-8  testimony reported by a stenographer must be transcribed, and the

1-9  transcript filed with the record in the matter. The Commission may

2-1  by regulation provide for the transcription or safekeeping of sound

2-2  recordings. [Cost] The costs of recording and transcribing testimony

2-3  at any hearing, except those hearings ordered pursuant to NRS

2-4  703.310, must be paid by the applicant. If a complaint is made

2-5  pursuant to NRS 703.310 by a customer or by a political subdivision

2-6  of the State or municipal organization, the complainant is not liable

2-7  for any costs. Otherwise, if there are several applicants or parties to

2-8  any hearing, the Commission may apportion the costs among them

2-9  in its discretion.

2-10      2.  If a petition is served upon the Commission as provided in

2-11  NRS 703.373 for the bringing of an action against the Commission,

2-12  before the action is reached for trial, the Commission shall file a

2-13  certified copy of all proceedings and testimony taken with the clerk

2-14  of the court in which the action is pending.

2-15      3.  A copy of the proceedings and testimony must be furnished

2-16  to any party, on payment of a reasonable amount [,] to be fixed by

2-17  the Commission, and the amount must be the same for all parties.

2-18      4.  The provisions of this section do not prohibit the

2-19  Commission from:

2-20      (a) Restricting access to the records and transcripts of a hearing

2-21  pursuant to paragraph (a) of subsection 3 of NRS 703.196.

2-22      (b) Protecting the confidentiality of information pursuant to

2-23  NRS 704B.310 or 704B.320 [.] or section 7 of this act.

2-24      Sec. 2.  NRS 704.185 is hereby amended to read as follows:

2-25      704.185  1.  A public utility which purchases natural gas for

2-26  resale may record upon its books and records in deferred accounts

2-27  all cost increases or decreases in the natural gas purchased for resale

2-28  . [in deferred accounts.] Any public utility which [utilizes] uses

2-29  deferred accounting to reflect changes in costs of natural gas

2-30  purchased for resale shall include in its annual report to the

2-31  Commission a statement showing the allocated rate of return for

2-32  each of its operating departments in Nevada which uses deferred

2-33  accounting.

2-34      2.  If the rate of return for any department using deferred

2-35  accounting pursuant to subsection 1 is greater than the rate of

2-36  return allowed by the Commission in the last rate proceeding, the

2-37  Commission shall order the utility which recovered any costs of

2-38  natural gas purchased for resale through rates during the reported

2-39  period to transfer to the next energy adjustment period that portion

2-40  of such recovered amounts which exceeds the authorized rate of

2-41  return.

2-42      3.  A public utility which purchases natural gas for resale may

2-43  request approval from the Commission to record upon its books

2-44  and records in deferred accounts any other cost or revenue which

2-45  the Commission deems appropriate for deferred accounting and

3-1  which is not otherwise subject to the provisions of subsections 1

3-2  and 2. If the Commission approves such a request, the

3-3  Commission shall determine the appropriate requirements for

3-4  reporting and recovery that the public utility must follow with

3-5  regard to each such deferred account.

3-6  Sec. 3.  NRS 704.870 is hereby amended to read as follows:

3-7  704.870  1.  Except as otherwise provided in subsection 2, a

3-8  person who wishes to obtain a permit for a utility facility must file

3-9  with the Commission an application, in such form as the

3-10  Commission prescribes, containing:

3-11      (a) A description of the location and of the utility facility to be

3-12  built thereon;

3-13      (b) A summary of any studies which have been made of the

3-14  environmental impact of the facility; and

3-15      (c) A description of any reasonable alternate location or

3-16  locations for the proposed facility, a description of the comparative

3-17  merits or detriments of each location submitted, and a statement of

3-18  the reasons why the primary proposed location is best suited for the

3-19  facility.

3-20  A copy or copies of the studies referred to in paragraph (b) must be

3-21  filed with the Commission and be available for public inspection.

3-22      2.  If a person wishes to obtain a permit for a utility facility and

3-23  a federal agency is required to conduct an environmental analysis of

3-24  the proposed utility facility, the person must:

3-25      (a) Not later than the date on which the person files with the

3-26  appropriate federal agency an application for approval for the

3-27  construction of the utility facility, file with the Commission and

3-28  each other permitting entity an application, in such a form as the

3-29  Commission or other permitting entity prescribes, containing:

3-30          (1) A general description of the proposed utility facility; and

3-31          (2) A summary of any studies which the applicant anticipates

3-32  will be made of the environmental impact of the facility; and

3-33      (b) Not later than 30 days after the issuance by the appropriate

3-34  federal agency of a final environmental assessment or

3-35  environmental impact statement relating to the construction of the

3-36  utility facility:

3-37          (1) File with the Commission an amended application that

3-38  complies with the provisions of subsection 1; and

3-39          (2) File with each other permitting entity an amended

3-40  application for a permit, license or other approval for the

3-41  construction of the utility facility.

3-42      3.  A copy of each application and amended application filed

3-43  with the Commission must be filed with the Administrator of the

3-44  Division of Environmental Protection of the State Department of

3-45  Conservation and Natural Resources.

4-1  4.  Each application and amended application filed with the

4-2  Commission must be accompanied by:

4-3  (a) Proof of service of a copy of the application or amended

4-4  application on the clerk of each local government in the area in

4-5  which any portion of the facility is to be located, both as primarily

4-6  and as alternatively proposed; and

4-7  (b) Proof that public notice thereof was given to persons

4-8  residing in the municipalities entitled to receive notice pursuant to

4-9  paragraph (a) by the publication of a summary of the application or

4-10  amended application in newspapers published and distributed in the

4-11  area in which the utility facility is proposed to be located.

4-12      5.  Not later than 5 business days after the Commission

4-13  receives an application or amended application pursuant to this

4-14  section, the Commission shall issue a notice concerning the

4-15  application or amended application. Any person who wishes to

4-16  become a party to a permit proceeding pursuant to NRS 704.885

4-17  must file with the Commission the appropriate document required

4-18  by NRS 704.885 within the time frame set forth in the notice

4-19  issued by the Commission pursuant to this subsection.

4-20      Sec. 4.  NRS 704.885 is hereby amended to read as follows:

4-21      704.885  1.  The parties to a permit proceeding include:

4-22      (a) The applicant.

4-23      (b) The Division of Environmental Protection of the State

4-24  Department of Conservation and Natural Resources.

4-25      (c) Each local government entitled to receive service of a copy

4-26  of the application pursuant to subsection 4 of NRS 704.870, if it has

4-27  filed with the Commission a notice of intervention as a party, within

4-28  [30 days after the date it was served with a copy of the application.]

4-29  the time frame established by the Commission pursuant to

4-30  subsection 5 of NRS 704.870.

4-31      (d) Any natural person residing in a local government entitled to

4-32  receive service of a copy of the application pursuant to subsection 4

4-33  of NRS 704.870, if such a person has petitioned the Commission for

4-34  leave to intervene as a party within [30 days after the date of the

4-35  published notice] the time frame established by the Commission

4-36  pursuant to subsection 5 of NRS 704.870 and if the petition has

4-37  been granted by the Commission for good cause shown.

4-38      (e) Any domestic nonprofit corporation or association, formed

4-39  in whole or in part to promote conservation of natural beauty, to

4-40  protect the environment, personal health or other biological values,

4-41  to preserve historical sites, to promote consumer interests, to

4-42  represent commercial and industrial groups, or to promote the

4-43  orderly development of the areas in which the facility is to be

4-44  located, if it has filed with the Commission a notice of intent to be a

4-45  party within [30 days after the date of the published notice.] the time

5-1  frame established by the Commission pursuant to subsection 5 of

5-2  NRS 704.870.

5-3  2.  Any person may make a limited appearance in the

5-4  proceeding by filing a statement of position within [30 days after the

5-5  date of the published notice.] the time frame established by the

5-6  Commission pursuant to subsection 5 of NRS 704.870. A

5-7  statement filed by a person making a limited appearance becomes

5-8  part of the record. No person making a limited appearance has the

5-9  right to present oral testimony or cross-examine witnesses.

5-10      3.  The Commission may, for good cause shown, grant a

5-11  petition for leave to intervene as a party to participate in subsequent

5-12  phases of the proceeding, filed by a municipality, government

5-13  agency, person or organization who is identified in paragraph (c),

5-14  (d) or (e) of subsection 1, but who failed to file in a timely manner a

5-15  notice of intervention, a petition for leave to intervene or a notice of

5-16  intent to be a party, as the case may be.

5-17      Sec. 5.  Chapter 704B of NRS is hereby amended by adding

5-18  thereto the provisions set forth as sections 6 and 7 of this act.

5-19      Sec. 6. “Consumer’s Advocate” means the Consumer’s

5-20  Advocate of the Bureau of Consumer Protection in the Office of

5-21  the Attorney General.

5-22      Sec. 7. 1.  An eligible customer that is purchasing energy,

5-23  capacity or ancillary services from a provider of new electric

5-24  resources may purchase energy, capacity or ancillary services

5-25  from an alternative provider without obtaining the approval of the

5-26  Commission if the terms and conditions of the transaction with the

5-27  alternative provider, other than the price of the energy, capacity or

5-28  ancillary services, conform to the terms and conditions of the

5-29  transaction that was originally approved by the Commission with

5-30  respect to the eligible customer.

5-31      2.  If any terms and conditions of the transaction with the

5-32  alternative provider, other than the price of the energy, capacity or

5-33  ancillary services, do not conform to the terms and conditions of

5-34  the transaction that was originally approved by the Commission

5-35  with respect to the eligible customer, the eligible customer must

5-36  obtain approval from the Commission before those

5-37  nonconforming terms and conditions are enforceable.

5-38      3.  If the eligible customer files a request with the Commission

5-39  for approval of any nonconforming terms and conditions, the

5-40  Commission shall review and make a determination concerning

5-41  the request on an expedited basis.

5-42      4.  Notwithstanding any specific statute to the contrary,

5-43  information concerning any terms and conditions of the

5-44  transaction with the alternative provider that the Commission

5-45  determines are commercially sensitive:

6-1  (a) Must not be disclosed by the Commission except to the

6-2  regulatory operations staff of the Commission, the Consumer’s

6-3  Advocate and his staff and the affected electric utility for the

6-4  purposes of carrying out the provisions of this section; and

6-5  (b) Shall be deemed to be confidential for all other purposes,

6-6  and the Commission shall take such actions as are necessary to

6-7  protect the confidentiality of such information.

6-8  Sec. 8. NRS 704B.010 is hereby amended to read as follows:

6-9  704B.010  As used in this chapter, unless the context otherwise

6-10  requires, the words and terms defined in NRS 704B.020 to

6-11  704B.140, inclusive, and section 6 of this act have the meanings

6-12  ascribed to them in those sections.

6-13      Sec. 9. NRS 704B.300 is hereby amended to read as follows:

6-14      704B.300  1.  Except as otherwise provided in this section, a

6-15  provider of new electric resources may sell energy, capacity or

6-16  ancillary services to one or more eligible customers if [the] :

6-17      (a) The eligible customers have been approved to purchase

6-18  energy, capacity and ancillary services from the provider pursuant to

6-19  the provisions of NRS 704B.310 and 704B.320 [.] ; or

6-20      (b) The transaction complies with the provisions of section 7 of

6-21  this act.

6-22      2.  A provider of new electric resources shall not sell energy,

6-23  capacity or ancillary services to an eligible customer [:

6-24      (a) Before April 1, 2002, if the eligible customer’s load is in the

6-25  service territory of an electric utility that primarily serves less

6-26  densely populated counties;

6-27      (b) Before June 1, 2002, if the eligible customer’s load is in the

6-28  service territory of an electric utility that primarily serves densely

6-29  populated counties; or

6-30      (c) If] if the transaction violates the provisions of this chapter.

6-31      3.  A provider of new electric resources that sells energy,

6-32  capacity or ancillary services to an eligible customer pursuant to the

6-33  provisions of this chapter:

6-34      (a) Does not become and shall not be deemed to be a public

6-35  utility solely because of that transaction; and

6-36      (b) Does not become and shall not be deemed to be subject to

6-37  the jurisdiction of the Commission except as otherwise provided in

6-38  this chapter or by specific statute.

6-39      4.  If a provider of new electric resources is not a public utility

6-40  in this state and is not otherwise authorized by the provisions of a

6-41  specific statute to sell energy, capacity or ancillary services at retail

6-42  in this state, the provider shall not sell energy, capacity or ancillary

6-43  services at retail in this state to a person or entity that is not an

6-44  eligible customer.

 

7-1  Sec. 10. NRS 704B.310 is hereby amended to read as follows:

7-2  704B.310  1.  An eligible customer that is purchasing bundled

7-3  electric service for all or any part of its load from an electric utility

7-4  shall not purchase energy, capacity or ancillary services from a

7-5  provider of new electric resources [and an eligible customer that is

7-6  purchasing energy, capacity or ancillary services from a provider of

7-7  new electric resources shall not purchase energy, capacity or

7-8  ancillary services from another provider] unless:

7-9  (a) The eligible customer files an application with the

7-10  Commission not later than 180 days before the date on which the

7-11  eligible customer intends to begin purchasing energy, capacity or

7-12  ancillary services from the provider [;] , except that the

7-13  Commission may allow the eligible customer to file the application

7-14  within any shorter period that the Commission deems appropriate;

7-15  and

7-16      (b) The Commission approves the application by a written order

7-17  issued in accordance with the provisions of this section and NRS

7-18  704B.320.

7-19  [The date on which the eligible customer intends to begin

7-20  purchasing energy, capacity or ancillary services from the provider

7-21  must not be sooner than the date on which the provider is authorized

7-22  by NRS 704B.300 to begin selling energy, capacity or ancillary

7-23  services to the eligible customer.]

7-24      2.  Except as otherwise provided in subsection 3, each

7-25  application filed pursuant to this section must include:

7-26      (a) Information demonstrating that the person filing the

7-27  application is an eligible customer;

7-28      (b) Information demonstrating that the proposed provider will

7-29  provide energy, capacity or ancillary services from a new electric

7-30  resource;

7-31      (c) Information concerning the terms and conditions of the

7-32  proposed transaction that is necessary for the Commission to

7-33  evaluate the impact of the proposed transaction on customers and

7-34  the public interest, including, without limitation, information

7-35  concerning the duration of the proposed transaction and the amount

7-36  of energy, capacity or ancillary services to be purchased from the

7-37  provider; and

7-38      (d) Any other information required pursuant to the regulations

7-39  adopted by the Commission.

7-40      3.  Except as otherwise provided in NRS 704B.320, the

7-41  Commission shall not require the eligible customer or provider to

7-42  disclose:

7-43      (a) The price that is being paid by the eligible customer to

7-44  purchase energy, capacity or ancillary services from the provider; or

8-1  (b) Any other terms or conditions of the proposed transaction

8-2  that the Commission determines are commercially sensitive.

8-3  4.  The Commission shall provide public notice of the

8-4  application of the eligible customer and an opportunity for a hearing

8-5  on the application in a manner that is consistent with the provisions

8-6  of NRS 703.320 and the regulations adopted by the Commission.

8-7  5.  The Commission shall approve the application of the eligible

8-8  customer unless the Commission finds that the proposed transaction:

8-9  (a) Will be contrary to the public interest; or

8-10      (b) Does not comply with the provisions of NRS 704B.320, if

8-11  those provisions apply to the proposed transaction.

8-12      6.  In determining whether the proposed transaction will be

8-13  contrary to the public interest, the Commission shall consider,

8-14  without limitation:

8-15      (a) Whether the electric utility that has been providing electric

8-16  service to the eligible customer will be burdened by increased costs

8-17  as a result of the proposed transaction or whether any remaining

8-18  customer of the electric utility will pay increased costs for electric

8-19  service as a result of the proposed transaction;

8-20      (b) Whether the proposed transaction will impair system

8-21  reliability or the ability of the electric utility to provide electric

8-22  service to its remaining customers; and

8-23      (c) Whether the proposed transaction will add energy, capacity

8-24  or ancillary services to the supply in this state.

8-25      7.  If the Commission approves the application of the eligible

8-26  customer:

8-27      (a) The eligible customer shall not begin purchasing energy,

8-28  capacity or ancillary services from the provider pursuant to the

8-29  proposed transaction sooner than 180 days after the date on which

8-30  the application was filed [;] , unless the Commission allows the

8-31  eligible customer to begin purchasing energy, capacity or ancillary

8-32  services from the provider at an earlier date; and

8-33      (b) The Commission shall order such terms, conditions and

8-34  payments as the Commission deems necessary and appropriate to

8-35  ensure that the proposed transaction will not be contrary to the

8-36  public interest. Such terms, conditions and payments:

8-37          (1) Must be fair and nondiscriminatory as between the

8-38  eligible customer and the remaining customers of the electric utility;

8-39  and

8-40          (2) Must include, without limitation, payment by the eligible

8-41  customer to the electric utility of the eligible customer’s load-share

8-42  portion of any unrecovered balance in the deferred accounts of the

8-43  electric utility.

9-1  8.  If the Commission does not enter a final order on the

9-2  application of the eligible customer within [90] 150 days after the

9-3  date on which the application was filed with the Commission:

9-4  (a) The application shall be deemed to be approved by the

9-5  Commission; and

9-6  (b) The eligible customer [shall not] may begin purchasing

9-7  energy, capacity or ancillary services from the provider pursuant to

9-8  the proposed transaction . [sooner than 180 days after the date on

9-9  which the application was filed.]

9-10      Sec. 11. NRS 704B.320 is hereby amended to read as follows:

9-11      704B.320  1.  For eligible customers whose loads are in the

9-12  service territory of an electric utility that primarily serves densely

9-13  populated counties, the aggregate amount of energy that all such

9-14  eligible customers purchase from providers of new electric

9-15  resources before July 1, 2003, must not exceed 50 percent of the

9-16  difference between the existing supply of energy generated in this

9-17  state that is available to the electric utility and the existing demand

9-18  for energy in this state that is consumed by the customers of the

9-19  electric utility, as determined by the Commission.

9-20      2.  An eligible customer that is a nongovernmental commercial

9-21  or industrial end-use customer whose load is in the service territory

9-22  of an electric utility that primarily serves densely populated counties

9-23  shall not purchase energy, capacity or ancillary services from a

9-24  provider of new electric resources unless, as part of the proposed

9-25  transaction, the eligible customer agrees to:

9-26      (a) Contract with the provider to purchase:

9-27          (1) An additional amount of energy which is equal to 10

9-28  percent of the total amount of energy that the eligible customer is

9-29  purchasing for its own use under the proposed transaction and which

9-30  is purchased at the same price, terms and conditions as the energy

9-31  purchased by the eligible customer for its own use; and

9-32          (2) The capacity and ancillary services associated with the

9-33  additional amount of energy at the same price, terms and conditions

9-34  as the capacity and ancillary services purchased by the eligible

9-35  customer for its own use; and

9-36      (b) Offers to assign the rights to the contract to the electric

9-37  utility for use by the remaining customers of the electric utility.

9-38      3.  If an eligible customer is subject to the provisions of

9-39  subsection 2, the eligible customer shall include with its application

9-40  filed pursuant to NRS 704B.310 all information concerning the

9-41  contract offered to the electric utility that is necessary for

9-42  the Commission to determine whether it is in the best interest of the

9-43  remaining customers of the electric utility for the electric utility to

9-44  accept the rights to the contract. Such information must include,

9-45  without limitation, the amount of the energy and capacity to be

10-1  purchased under the contract, the price of the energy, capacity and

10-2  ancillary services and the duration of the contract.

10-3      4.  Notwithstanding any specific statute to the contrary,

10-4  information concerning the price of the energy, capacity and

10-5  ancillary services and any other terms or conditions of the contract

10-6  that the Commission determines are commercially sensitive:

10-7      (a) Must not be disclosed by the Commission except to the

10-8  regulatory operations staff of the Commission, the Consumer’s

10-9  Advocate and his staff and the electric utility for the purposes of

10-10  carrying out the provisions of this section; and

10-11     (b) Shall be deemed to be confidential for all other purposes,

10-12  and the Commission shall take such actions as are necessary to

10-13  protect the confidentiality of such information.

10-14     5.  If the Commission determines that the contract:

10-15     (a) Is not in the best interest of the remaining customers of the

10-16  electric utility, the electric utility shall not accept the rights to

10-17  the contract, and the eligible customer is entitled to all rights to the

10-18  contract.

10-19     (b) Is in the best interest of the remaining customers of the

10-20  electric utility, the electric utility shall accept the rights to

10-21  the contract and the eligible customer shall assign all rights to the

10-22  contract to the electric utility. A contract that is assigned to the

10-23  electric utility pursuant to this paragraph shall be deemed to be an

10-24  approved part of the resource plan of the electric utility and a

10-25  prudent investment, and the electric utility may recover all costs for

10-26  the energy, capacity and ancillary services acquired pursuant to the

10-27  contract. To the extent practicable, the Commission shall take

10-28  actions to ensure that the electric utility uses the energy, capacity

10-29  and ancillary services acquired pursuant to each such contract only

10-30  for the benefit of the remaining customers of the electric utility that

10-31  are not eligible customers, with a preference for the remaining

10-32  customers of the electric utility that are residential customers with

10-33  small loads.

10-34     6.  The provisions of this section do not exempt the electric

10-35  utility, in whole or in part, from the requirements imposed on the

10-36  electric utility pursuant to NRS 704.7801 to 704.7828, inclusive, to

10-37  comply with its portfolio standard for renewable energy. The

10-38  Commission shall not take any actions pursuant to this section that

10-39  conflict with or diminish those requirements.

10-40     [7.  As used in this section, “Consumer’s Advocate” means the

10-41  Consumer’s Advocate of the Bureau of Consumer Protection in the

10-42  Office of the Attorney General.]

 

 

11-1      Sec. 12. This act becomes effective upon passage and

11-2  approval.

 

11-3  H