NAC: CHAPTER 703 - PUBLIC UTILITIES COMMISSION OF NEVADA

[Rev. 5/14/2008 1:01:28 PM]

CHAPTER 703 - PUBLIC UTILITIES COMMISSION OF NEVADA

GENERAL PROVISIONS

703.010 Definitions.

703.015 “Application” defined.

703.016 “Basic network service” defined.

703.0165 “Business line service” defined.

703.017 “Business office” defined.

703.018 “Chairman” defined.

703.019 “Commenter” defined.

703.020 “Commission” defined.

703.025 “Commissioner” defined.

703.030 “Commission’s staff” defined.

703.033 “Competitive supplier” defined.

703.035 “Complaint” defined.

703.037 “Consumer’s Advocate” defined.

703.040 “Division of Consumer Complaint Resolution” defined.

703.044 “Electronic filing system” defined.

703.046 “Electronic Filing User’s Guide” defined.

703.050 “Hearing” defined.

703.051 “Hearing officer” defined.

703.052 “Incumbent local exchange carrier” defined.

703.053 “Intervener” defined.

703.055 “Motion” defined.

703.061 “Nonsystem document” defined.

703.070 “Party of record” and “party” defined.

703.075 “Person” defined.

703.080 “Petition” defined.

703.085 “Pleading” defined.

703.090 “Presiding officer” defined.

703.095 “Public utility” and “utility” defined.

703.097 “Rebuttal evidence” defined.

703.098 “Records management system” defined.

703.100 “Secretary” defined.

703.1003 “Small-scale provider of last resort” defined.

703.1007 “System document” defined.

703.101 “Telecommunication” defined.

703.1015 “Telecommunication provider” and “telephone company” defined.

703.102 “Telecommunication service” and “telephone service” defined.

703.105 Scope; applicability of Nevada Rules of Civil Procedure.

703.110 Construction.

703.112 Severability.

703.115 Deviation from regulations.

703.120 Computation and extension of time.

703.125 Fees and remittances.

703.130 Public records.

703.132 Submission of documents: Format.

703.134 System documents.

703.136 Nonsystem documents.

703.138 Maintenance of documents in records management system.

703.140 Rejection of documents; effect of acceptance.

703.145 Receipt of documents by Commission.

703.155 General duties of Secretary.

703.158 Service lists.

703.160 Public notice of certain filings or proceedings.

703.162 Inclusion of certain information in application, tariff, complaint or petition.

703.163 Informal discovery meetings following applications for certain adjustments.

703.164 Consumer sessions.

APPLICATIONS FOR PRIVILEGES, RIGHTS AND AUTHORITY

Certificates of Public Convenience and Necessity: Public Utilities

703.170 Applicability.

703.175 General requirements.

703.180 Specific requirements for small-scale providers of last resort not regulated as competitive suppliers.

703.185 Specific requirements for electric companies.

703.190 Specific requirements for water utilities.

703.195 Specific requirements for wastewater utilities.

703.197 Specific requirements for annexations by existing water and wastewater utilities.

703.199 Annual requirements for water and wastewater utilities.

703.200 Specific requirements for water and sewer companies that are no longer exempt.

703.205 Specific requirements for gas companies.

Changes in Rates: Public Utilities Other Than Telecommunication Providers

703.2201 Definitions.

703.2205 Applicability.

703.2207 Notice of intent to file application for adjustment in rates.

703.2208 Submission of master document for request of data.

703.2209 Meeting with Consumer’s Advocate and staff of Commission before filing application.

703.2211 Information required in application.

703.2215 Information to be filed with application.

703.2221 Additional information.

703.2225 Illustrative format.

703.2231 Scope of presentation and preparation for hearing.

703.2235 Format of statements and schedules.

703.2241 Nonapplicable statements and schedules.

703.2245 Recorded data and adjustments.

703.2247 Statements of effects of expected changes in circumstances: Submission by certain natural gas utilities.

703.2248 Statements of effects of expected changes in circumstances: Factors for consideration by Commission.

703.2251 Reliance on other data.

703.2255 Supporting data.

703.2261 Filing of information relating to deferred energy accounting.

703.2265 Filing requirements for utilities with annual gross operating revenues of $250,000 or more.

703.2271 Statement A.

703.2275 Statement B.

703.2281 Statement C.

703.2285 Statement D.

703.2291 Statement E.

703.2295 Statement F.

703.2301 Schedule F-1.

703.2305 Schedule F-2.

703.2311 Schedule F-3.

703.2315 Schedule F-4.

703.2321 Statement G.

703.2325 Schedule G-1.

703.2331 Schedule G-2.

703.2335 Schedule G-3.

703.2341 Schedule G-4.

703.2343 Schedule G-5.

703.2345 Statement H.

703.2351 Statement I.

703.2355 Statement J.

703.2361 Statement K.

703.2365 Schedule K-1.

703.2371 Schedule K-2.

703.2375 Schedule K-3.

703.2381 Schedule K-4.

703.2385 Schedule K-5.

703.2391 Schedule K-6.

703.2395 Schedule K-7.

703.2401 Statement L.

703.2405 Schedule L-1.

703.2411 Statement M.

703.2415 Schedule M-1.

703.2421 Schedule M-2.

703.2425 Schedule M-3.

703.2431 Schedule M-4.

703.2435 Schedule M-5.

703.2441 Statement N.

703.2443 Schedule N-1.

703.2445 Statement O.

703.2451 Statement P.

703.2452 Statement Q.

703.2455 Filing requirements for utilities with annual gross operating revenues of less than $250,000.

703.2461 Certified adjustments.

703.2481 Notice to public and customers.

Changes in Rates of Telecommunication Providers: General Provisions

703.2501 Definitions.

703.2502 “Access line” defined.

703.25022 “Completed application” defined.

703.25026 “Provider of last resort” defined.

703.2503 “Test year” defined.

703.25032 “Uniform System of Accounts” defined.

703.25034 “Unit” defined.

703.25036 “Unit rate” defined.

703.2504 Applicability.

703.2507 Notice of intent to file application for adjustment in rates.

703.2508 Submission of master document for request of data.

703.2509 Meeting with Consumer’s Advocate and staff of Commission before filing application.

Changes in Rates of Telecommunication Providers: Competitive Suppliers That Are Incumbent Local Exchange Carriers

703.251 Applicability.

703.2511 Information required in application.

703.2515 Information to be filed with application.

703.2521 Additional information.

703.2525 Illustrative format.

703.2531 Scope of presentation and preparation for hearing.

703.2535 Format of statements and schedules.

703.2541 Nonapplicable statements and schedules.

703.2545 Recorded data and adjustments.

703.2551 Reliance on other data.

703.2555 Supporting data.

703.2561 Filing requirements.

703.2565 Statement A.

703.2571 Statement B.

703.2575 Statement C.

703.2581 Statement D.

703.2585 Statement E.

703.2591 Statement F.

703.2595 Statement G.

703.2601 Statement H.

703.2605 Statement I.

703.2611 Statement J.

703.2615 Statement K.

703.2621 Schedule K-1.

703.2625 Schedule K-2.

703.2631 Schedule K-3.

703.2635 Schedule K-4.

703.2641 Schedule K-5.

703.2645 Schedule K-6.

703.2651 Schedule K-7.

703.2655 Statement L.

703.2661 Statement M.

703.2665 Schedule M-1.

703.2671 Schedule M-2.

703.2675 Schedule M-3.

703.2681 Statement N.

703.2685 Statement O.

703.2687 Statement P.

703.2688 Statement Q.

703.2691 Certified adjustments.

703.2711 Notice to public and customers.

Changes in Rates of Telecommunication Providers: Small-Scale Providers of Last Resort

703.27116 Applicability.

703.27118 Information required in application for adjustments in rates.

703.2712 Scope of presentation and preparation for hearing.

703.27122 Recorded data and adjustments.

703.27124 Reliance on other data.

703.27126 Supporting data.

703.27128 Application for change in rates which results in general change in annual revenues.

703.2713 Service of application for change in rates; compliance with provisions regarding notice.

703.27132 Information required in application for change in rates.

703.27134 Review of application for change in rates by staff of Commission; report on consumer relations.

703.27136 Hearing on application for change in rates; submission of prepared testimony.

703.27138 Determination of appropriate return on common equity.

703.2714 Requests to establish or change rates for discretionary or competitive service.

703.27142 Deviation from regulations.

703.27144 Certified adjustments.

703.27146 Notice to public and customers.

Applications for Approval of New or Revised Depreciation Rates

703.2715 Applicability.

703.272 Application: Contents; action by Commission when filed as part of general rate application.

703.2725 Statements to be filed with application; index.

703.273 Request for additional information.

703.2735 Illustrative statements.

703.274 Sufficiency of application.

703.2745 Form of statements.

703.275 Data not presented in statements.

703.2755 Supporting data.

703.276 Study of depreciation.

703.2765 Statement A.

703.277 Statement B.

703.2775 Statement C.

703.278 Recording of approved rates.

Negotiation, Arbitration and Approval of Interconnection Agreements for Telecommunication Services

703.280 Applicability.

703.284 Rights of parties and other interested persons or entities in proceedings.

703.286 Petition for arbitration; response to petitioner.

703.288 Negotiation of agreement through arbitration.

703.290 Petition for approval of mediated or negotiated agreement.

703.292 Petition for approval of statement of generally accepted terms.

703.294 Petition for mediation.

703.296 List for notification of service of process.

Tariffs: Public Utilities

703.375 Definitions.

703.380 Applicability.

703.385 Form of tariff.

703.390 Notices or letters of advice; reissued tariffs.

703.400 Tariff sheets; proposals to increase rates; effective date of change filed by letter of advice.

703.405 Exceptions.

703.410 Posting of schedules.

Construction of Utility Facilities

703.415 Applicability.

703.417 Definitions.

703.4175 “Western Interconnection” defined.

703.418 Declaration of purpose: “Water transmission lines” interpreted.

703.4182 Utility facilities: “Compressor stations” interpreted.

703.4184 Utility facilities: “Gas transmission lines” interpreted.

703.4186 Utility facilities: “Sewer transmission and treatment facilities” interpreted.

703.4188 Utility facilities: “Storage plants” interpreted.

703.4192 Utility facilities: “To supply water” and “treatment of water” interpreted.

703.4194 Utility facilities: “Water storage facilities” interpreted.

703.421 Application for permit when federal agency required to conduct environmental analysis.

703.423 Application for permit when no federal agency required to conduct environmental analysis; amended application after final environmental assessment or environmental impact statement issued by federal agency.

703.427 Expiration and renewal of permit.

Securities

703.430 Applicability.

703.435 Applications.

703.440 Exhibits.

703.441 Notice to grant or deny application.

703.443 Additional requirements for certain applications.

Railroad Crossings

703.445 Applicability.

703.450 Application to construct public highway across railroad.

703.455 Application to construct railroad track across public highway.

703.460 Alteration of existing crossing.

703.465 Agreement to apportion costs.

703.470 Service of application or complaint.

703.475 Hearing.

Subdivision of Land

703.476 Tentative map: Submission to and action by Commission’s staff.

703.477 Final map: Application for approval.

703.478 Final map: Verification of approval or disapproval by Commission.

PRACTICE BEFORE COMMISSION

General Provisions

703.481 Restrictions on certain communications with Commissioner or hearing officer while contested case is pending.

Hearing Officers

703.486 Appointment; reassignment of matter; revocation of appointment; proposed orders; appeal and review of decisions.

Parties and Commenters

703.490 Classification of parties.

703.491 Commenters: Conditions and scope of participation in proceedings.

703.492 Notice to parties; request for hearing.

703.495 Rights of Commission’s staff.

703.500 Rights of parties and commenters.

703.505 Appearances.

703.510 Representation: Generally; by attorney.

703.515 Restriction on former employee acting as representative or expert witness.

703.520 Withdrawal of representative.

703.525 Standards of conduct; exclusion for contumacious conduct.

Confidentiality of Information

703.527 Definitions.

703.5272 Applicability.

703.5274 Confidential treatment of information: Requests; procedures; responsibilities of Commission; hearings.

703.5276 Prepared testimony containing or addressing information designated as confidential.

703.5278 Contents of protective order issued with regard to information designated as confidential.

703.528 Appeal of determination by presiding officer regarding treatment of confidential information; disclosure of information not designated confidential.

703.5282 Disclosure of information designated as confidential; penalties.

Pleadings

703.530 Captions, amendments and construction of pleadings.

703.535 Applications: General requirements.

703.540 Petitions: General requirements.

703.546 Petition to adopt, amend or repeal regulation.

703.550 Motions: General requirements.

703.555 Responses to motions; replies to responses.

703.560 Pleadings: General requirements; effect of signature.

703.570 Answers: General requirements.

703.573 Answers to petitions.

703.577 Motions to dismiss certain applications involving rate increase.

Petitions for Leave to Intervene

703.578 “Association” defined.

703.580 Persons entitled to file petition.

703.585 Contents of petition.

703.590 Time for filing petition.

703.595 Standards for granting petition; standards for dismissing intervener.

703.600 Limitations on rights of certain interveners.

Service of Documents

703.610 Methods of service; duty to serve other parties; requests for personal service.

703.615 Proof of service.

Complaints

703.616 Disposition of oral complaints.

703.621 Written complaints.

703.626 Response to written complaint.

703.631 Investigation and recommendation by Division.

703.636 Transmittal of unresolved complaints to Commission.

703.641 Dismissal of complaint.

703.646 Public hearing; interim relief.

703.651 Complaints investigated directly by Commission.

Hearings

703.655 Prehearing conference.

703.662 Proposed change or addition to notice.

703.665 Location of hearing.

703.667 Objection by Commissioner to designation as presiding officer.

703.670 Continuances.

703.675 Failure of party to appear.

703.680 Discovery.

703.685 Witnesses and testimony.

703.690 Authority of presiding officer.

703.695 Order of proceedings; cross-examination of witnesses by certain persons.

703.697 Hearing on proposed regulation.

703.700 Order requiring appearance of witness or compelling production of document.

703.702 Admissibility of evidence: Relevancy.

703.705 Objections concerning admissibility of evidence.

703.710 Prepared testimony.

703.712 Motion to strike testimony of witness.

703.715 Documentary evidence.

703.720 Resolutions offered into evidence.

703.722 Rebuttal evidence.

703.725 Additional evidence.

703.730 Receipt of evidence into record.

703.735 Rulings by presiding officer.

703.740 Consolidation.

703.745 Joint hearings with other agencies.

703.750 Stipulations regarding facts in issue.

703.752 Interim order.

703.755 Official notice.

703.760 Briefs.

703.765 Oral arguments.

703.770 Submission of matter for decision by Commission.

703.775 Reopening proceedings to receive additional evidence.

703.780 Proposed findings of fact and conclusions of law.

703.785 Orders of Commission: Proposed orders.

703.790 Orders of Commission: Date of issuance; effective date.

703.796 Orders of Commission: Compliance items.

703.801 Petition for reconsideration or rehearing.

703.820 Copies of transcripts.

Declaratory Orders and Advisory Opinions

703.825 Petition; hearings.

Settlements

703.845 Stipulations for settlement of issues.

GENERAL PROVISIONS

NAC 703.010 Definitions. (NRS 703.025, 704.210) As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 703.015 to 703.102, inclusive, have the meanings ascribed to them in those sections.

(Supplied in codification; A by Pub. Service Comm’n, 1-6-84; 3-19-87; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R107-07, 12-4-2007; R136-07, 1-30-2008)

NAC 703.015 “Application” defined. (NRS 703.025, 704.210) “Application” means a request for relief filed with the Commission as specified in NAC 703.535.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 1, eff. 1-1-79]

NAC 703.016 “Basic network service” defined. (NRS 703.025, 704.210) “Basic network service” has the meaning ascribed to it in NAC 704.0054.

(Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

NAC 703.0165 “Business line service” defined. (NRS 703.025, 704.210) “Business line service” has the meaning ascribed to it in NAC 704.0056.

(Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

NAC 703.017 “Business office” defined. (NRS 703.025, 704.210) “Business office” means any office of a public utility which is frequented by and regularly opened to the public but not a bank or other agent authorized by the utility to accept, for the convenience of a customer, the payment of a bill of charges.

(Added to NAC by Pub. Service Comm’n, eff. 3-19-87)

NAC 703.018 “Chairman” defined. (NRS 703.025, 704.210) “Chairman” means the Chairman of the Commission.

(Added to NAC by Pub. Utilities Comm’n by R047-02, eff. 10-24-2002)

NAC 703.019 “Commenter” defined. (NRS 703.025, 704.210) “Commenter” means a person who participates in a proceeding as a commenter pursuant to NAC 703.491.

(Added to NAC by Pub. Utilities Comm’n by R047-02, eff. 10-24-2002)

NAC 703.020 “Commission” defined. (NRS 703.025, 704.210) “Commission” means the Public Utilities Commission of Nevada.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 2, eff. 1-1-79]

NAC 703.025 “Commissioner” defined. (NRS 703.025, 704.210) “Commissioner” means a Public Utilities Commissioner appointed pursuant to chapter 703 of NRS.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 3, eff. 1-1-79]

NAC 703.030 “Commission’s staff” defined. (NRS 703.025, 704.210) “Commission’s staff” means persons employed by the Commission.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 4, eff. 1-1-79]

NAC 703.033 “Competitive supplier” defined. (NRS 703.025, 704.210) “Competitive supplier” has the meaning ascribed to it in NAC 704.0066.

(Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

NAC 703.035 “Complaint” defined. (NRS 703.025, 704.210) “Complaint” means a request for relief filed with:

1. The Division of Consumer Complaint Resolution as specified in NAC 703.621; or

2. The Commission as specified in NAC 703.651.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 5, eff. 1-1-79]—(NAC A 1-6-84; 12-19-89; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

NAC 703.037 “Consumer’s Advocate” defined. (NRS 703.025, 704.210) “Consumer’s Advocate” has the meaning ascribed to it in NRS 228.304.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.040 “Division of Consumer Complaint Resolution” defined. (NRS 703.025, 704.210) “Division of Consumer Complaint Resolution” is a division within the Commission established to receive and investigate complaints made against any public utility, to conduct appropriate investigations of practices of utility company services and to perform such other functions as are required by law or as the Commission deems appropriate.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 6, eff. 1-1-79]

NAC 703.044 “Electronic filing system” defined. (NRS 703.025, 704.210) “Electronic filing system” means the program used to electronically accept certain information and fees submitted to the Commission.

(Added to NAC by Pub. Utilities Comm’n by R107-07, eff. 12-4-2007)

NAC 703.046 “Electronic Filing User’s Guide” defined. (NRS 703.025, 704.210) “Electronic Filing User’s Guide” means the instructions for submitting documents through the electronic filing system.

(Added to NAC by Pub. Utilities Comm’n by R107-07, eff. 12-4-2007)

NAC 703.050 “Hearing” defined. (NRS 703.025, 704.210) “Hearing” means any public proceeding that is noticed by the Commission in accordance with applicable statutes and includes an opportunity for all parties to present any written or oral testimony that the Commission considers relevant and material to the issues.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 8, eff. 1-1-79]

NAC 703.051 “Hearing officer” defined. (NRS 703.025, 704.210) “Hearing officer” means a person who:

1. Is appointed by the Chairman pursuant to NAC 703.486 to preside over and conduct hearings or other proceedings, or any portion thereof; and

2. Has the powers which are provided for in this chapter or which are otherwise conferred by the Commission with regard to a particular hearing or other proceeding.

(Added to NAC by Pub. Utilities Comm’n by R047-02, eff. 10-24-2002)

NAC 703.052 “Incumbent local exchange carrier” defined. (NRS 703.025, 704.210) “Incumbent local exchange carrier” has the meaning ascribed to it in NAC 704.00861.

(Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

NAC 703.053 “Intervener” defined. (NRS 703.025, 704.210) “Intervener” means a person granted leave to intervene by the Commission pursuant to NAC 703.578 to 703.600, inclusive.

(Added to NAC by Pub. Utilities Comm’n by R047-02, eff. 10-24-2002)

NAC 703.055 “Motion” defined. (NRS 703.025, 704.210) “Motion” means a request for relief filed with the Commission pursuant to NAC 703.550 or another specific regulation.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 9, eff. 1-1-79]—(NAC A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

NAC 703.061 “Nonsystem document” defined. (NRS 703.025, 704.210) “Nonsystem document” means a document submitted to the Commission in a manner other than through the electronic filing system.

(Added to NAC by Pub. Utilities Comm’n by R107-07, eff. 12-4-2007)

NAC 703.070 “Party of record” and “party” defined. (NRS 703.025, 704.210) “Party of record” or “party” means an applicant, a complainant, a petitioner, a respondent, the Commission’s staff and its counsel, the Consumer’s Advocate or an intervener.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 12, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

NAC 703.075 “Person” defined. (NRS 703.025, 704.210) “Person” means any of the following:

1. A natural person.

2. Any form of business or social organization and any other nongovernmental legal entity, including, without limitation, a corporation, partnership, association, trust or unincorporated organization.

3. A government, a political subdivision of a government or an agency or instrumentality of a government or a political subdivision of a government.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 13, eff. 1-1-79]—(NAC A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

NAC 703.080 “Petition” defined. (NRS 703.025, 704.210) “Petition” means a request for relief made to the Commission pursuant to NAC 703.540.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 14, eff. 1-1-79]

NAC 703.085 “Pleading” defined. (NRS 703.025, 704.210) “Pleading” means any application, petition, complaint, answer, motion or comment filed with the Commission in any proceeding.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 15, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

NAC 703.090 “Presiding officer” defined. (NRS 703.025, 704.210) “Presiding officer” means:

1. The Chairman;

2. A Commissioner designated by the Chairman to preside over and conduct hearings or other proceedings, or any portion thereof; or

3. A hearing officer appointed by the Chairman to preside over and conduct hearings or other proceedings, or any portion thereof, if the Chairman designates the hearing officer as the presiding officer for the hearings or proceedings.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 16, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

NAC 703.095 “Public utility” and “utility” defined. (NRS 703.025, 704.210) “Public utility” or “utility” means any business which the Commission is authorized to regulate pursuant to chapter 704 of NRS.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 17, eff. 1-1-79]

NAC 703.097 “Rebuttal evidence” defined. (NRS 703.025, 704.210) “Rebuttal evidence” means evidence offered by the applicant, petitioner or complainant which must directly explain, repel, counteract or disprove facts offered in evidence by other parties of record who oppose the application, petition or complaint.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

NAC 703.098 “Records management system” defined. (NRS 703.025, 704.210) “Records management system” means the program used to electronically maintain certain information related to the Commission.

(Added to NAC by Pub. Utilities Comm’n by R107-07, eff. 12-4-2007)

NAC 703.100 “Secretary” defined. (NRS 703.025, 704.210) “Secretary” means the Secretary of the Commission or the Assistant Secretary of the Commission who is appointed pursuant to NRS 703.130.

[Pub. Service Comm’n, Gen. Order 3 § 3.010 subsec. 18, eff. 1-1-79]

NAC 703.1003 “Small-scale provider of last resort” defined. (NRS 703.025, 704.210) “Small-scale provider of last resort” has the meaning ascribed to it in NAC 704.00882.

(Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

NAC 703.1007 “System document” defined. (NRS 703.025, 704.210) “System document” means a document submitted to the Commission through the electronic filing system. It does not include a document submitted by electronic mail or other electronic or digital means outside of the electronic filing system.

(Added to NAC by Pub. Utilities Comm’n by R107-07, eff. 12-4-2007)

NAC 703.101 “Telecommunication” defined. (NRS 703.025, 704.210) “Telecommunication” has the meaning ascribed to it in NAC 704.00883.

(Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

NAC 703.1015 “Telecommunication provider” and “telephone company” defined. (NRS 703.025, 704.210) “Telecommunication provider” or “telephone company” has the meaning ascribed to it in NAC 704.008835.

(Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

NAC 703.102 “Telecommunication service” and “telephone service” defined. (NRS 703.025, 704.210) “Telecommunication service” or “telephone service” has the meaning ascribed to it in NAC 704.00884.

(Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

NAC 703.105 Scope; applicability of Nevada Rules of Civil Procedure. (NRS 703.025, 704.210)

1. The provisions of this chapter govern practice before the Commission.

2. To the extent that any action before the Commission is not covered by these provisions, the Commission may follow the applicable rule in the Nevada Rules of Civil Procedure.

[Pub. Service Comm’n, Gen. Order 3 §§ 1.010 & 1.050, eff. 1-1-79]—(NAC A 1-6-84; 10-7-93)

NAC 703.110 Construction. (NRS 703.025, 704.210) The provisions of this chapter and any regulations incorporated by reference will be construed by the Commission or any presiding officer as to secure a just and speedy determination of the issues.

[Pub. Service Comm’n, Gen. Order 3 § 1.040, eff. 1-1-79]

NAC 703.112 Severability. (NRS 703.025, 704.210) If any provision of this chapter or any application thereof to any person, thing or circumstance is held invalid, the Commission intends that such invalidity not affect the remaining provisions, or their application, that can be given effect without the invalid provision or application.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.115 Deviation from regulations. (NRS 703.025, 704.210) The Commission or the presiding officer may allow deviation from the provisions of this chapter if:

1. Good cause for the deviation appears;

2. The person requesting the deviation provides a specific reference to each provision of this chapter from which deviation is requested; and

3. The Commission finds that the deviation is in the public interest and is not contrary to statute.

[Pub. Service Comm’n, Gen. Order 3 § 1.030, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R186-97, 1-30-98; R047-02, 10-24-2002; R010-05, 9-7-2005)

NAC 703.120 Computation and extension of time. (NRS 703.025, 704.210) Except as otherwise provided by law:

1. In computing any period prescribed or allowed by any regulation of the Commission, the day of the act, event or default from or after which the designated period begins to run is not included. The last day of the period so computed is included, but if it is a Saturday, Sunday or legal holiday, the period runs until the end of the next day which is not a Saturday, Sunday or legal holiday.

2. If an act is required or allowed under any regulation of the Commission, or any notice given thereunder, to be done within a specified period, the period will be extended by the Commission or the presiding officer, for good cause shown, upon a motion made before the specified period expires.

[Pub. Service Comm’n, Gen. Order 3 §§ 14.010 & 14.040, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

NAC 703.125 Fees and remittances. (NRS 703.025, 704.210) A fee or remittance by money order, bank draft or check to the Commission must be made payable to the “Public Utilities Commission of Nevada.” A remittance in currency or coin is acceptable but is sent wholly at the risk of the remitter, and the Commission assumes no responsibility for the loss of such a remittance. An application fee or other charge required by law must be paid to the Commission at the time of filing with the Commission.

[Pub. Service Comm’n, Gen. Order 3 § 2.070, eff. 1-1-79]

NAC 703.130 Public records. (NRS 703.025, 704.210)

1. Except as otherwise provided by law, all documents filed with the Commission become matters of public record as of the day and time of their filing. The Secretary, within reasonable limits of time and general expediency, shall permit members of the public to examine these public records.

2. Upon request, copies of public records will be made and a reasonable fee will be charged for the cost of reproduction. Copies of transcripts must first be requested from the court reporter or transcriber who made the transcript.

[Pub. Service Comm’n, Gen. Order 3 § 2.080, eff. 1-1-79]—(NAC A 1-6-84)

NAC 703.132 Submission of documents: Format. (NRS 703.025, 704.210)

1. Any document submitted to the Commission must be either a system document or a nonsystem document.

2. A person may provide to the Commission, the staff of the Commission and any party of record to a proceeding any additional, unofficial copies that are of a system or nonsystem document and that do not conform to the requirements of this chapter if the alternative format of those copies assists in communicating the information contained therein.

(Added to NAC by Pub. Utilities Comm’n by R107-07, eff. 12-4-2007)

NAC 703.134 System documents. (NRS 703.025, 704.210)

1. All system documents must be submitted in accordance with the Electronic Filing User’s Guide.

2. The Commission will send an electronic mail verifying the submission of a system document to the person who submits the system document.

3. A system document is deemed submitted:

(a) For a system document submitted during the business hours of the Commission, at the date and time of the submission, as verified by the electronic filing system; and

(b) For a system document submitted outside of the business hours of the Commission, at the start of the next business day of the Commission.

4. Any requirements related to a document are not waived by the rejection or nonreceipt of all or part of that document by the electronic filing system.

(Added to NAC by Pub. Utilities Comm’n by R107-07, eff. 12-4-2007)

NAC 703.136 Nonsystem documents. (NRS 703.025, 704.210)

1. Except as otherwise provided in subsection 2, in order for the Commission to scan a nonsystem document into the records management system, the document must:

(a) Be typewritten in black ink or be prepared by another duplication process that will produce clear and permanent copies equally legible to printing;

(b) Be unbound;

(d) Be printed on one side of 18 to 24 pound white paper that is 8 1/2 by 11 inches in size.

2. The requirements of subsection 1 do not apply if:

(a) The document is submitted pursuant to NAC 703.5274, in which case the requirements of NAC 703.5274 must be followed; or

(b) A person wishes to use an alternative format for the document, the person requests the use of the alternative format for the document before submitting it and the Commission agrees to the alternative format, in which case hard copies that are clearly legible must be provided in the alternative format to the Commission, the Regulatory Operations Staff of the Commission and any party of record to the proceeding.

(Added to NAC by Pub. Utilities Comm’n by R107-07, eff. 12-4-2007)

NAC 703.138 Maintenance of documents in records management system. (NRS 703.025, 704.210) All documents submitted to the Commission will be maintained in the records management system, except those documents submitted pursuant to NAC 703.5274.

(Added to NAC by Pub. Utilities Comm’n by R107-07, eff. 12-4-2007)

NAC 703.140 Rejection of documents; effect of acceptance. (NRS 703.025, 704.210) A document which is not in compliance with the provisions of this chapter or applicable statutes may be rejected. If rejected, that document will be returned with an indication of its deficiencies. The acceptance of a document for filing is not a determination that the document complies with all regulations of the Commission and is not a waiver of those regulations.

[Pub. Service Comm’n, Gen. Order 3 § 2.060, eff. 1-1-79]—(NAC A 1-6-84)

NAC 703.145 Receipt of documents by Commission. (NRS 703.025, 704.210) A document is considered officially received by the Commission only if it is:

1. Filed at the Commission’s office in Carson City or Las Vegas and addressed to the Secretary of the Commission;

2. Presented to the Commission during a hearing; or

3. Filed through the electronic filing system.

[Pub. Service Comm’n, Gen. Order 3 § 2.050, eff. 1-1-79]—(NAC A 12-2-91; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R107-07, 12-4-2007)

NAC 703.155 General duties of Secretary. (NRS 703.025, 704.210)

1. The Secretary has custody of the minutes of the Commission’s proceedings, of its regulations and of all other records of the Commission, including its administrative orders. Orders of the Commission will be authenticated or signed by the Secretary or by another person authorized by the Commission.

2. The Secretary will maintain a hearing calendar of all scheduled hearings at the Commission’s office in Carson City and in its branch office in Las Vegas. The hearing calendar is available for public inspection at all times.

3. The Secretary will maintain a docket of all matters pending before the Commission and will assign an appropriate docket number to each new matter. The docket is available at the Commission’s office in Carson City for public inspection.

[Pub. Service Comm’n, Gen. Order 3 §§ 2.020-2.040, eff. 1-1-79]

NAC 703.158 Service lists. (NRS 703.025, 704.210)

1. The Commission will maintain one or more service lists for proceedings before the Commission, including, without limitation, a service list that applies to all proceedings before the Commission.

2. Except as otherwise provided in subsection 3, a person may submit to the Secretary a written request to be placed on one or more service lists maintained by the Commission. If a person makes such a request, the Secretary will send the person either copies or electronic mail notification of all notices and orders issued by the Commission or a presiding officer in all proceedings to which the service lists apply for at least 6 months after the date of the request, or until the conclusion of a docket for matters which continue for more than 6 months. A person may submit to the Secretary a written request to renew the person’s placement on the service list.

3. The Nevada Press Association, or any successor in interest to that organization, will be placed permanently on the service lists maintained by the Commission, unless it requests to be removed from the service lists.

4. A person on a service list is responsible for notifying the Secretary in writing of any changes in the electronic or physical address contact information for that person.

(Added to NAC by Pub. Utilities Comm’n by R047-02, eff. 10-24-2002; A by R116-03, 10-30-2003; R107-07, 12-4-2007)

NAC 703.160 Public notice of certain filings or proceedings. (NRS 703.025, 703.320, 704.210)

1. The Secretary shall cause public notice of each filing or proceeding described in subsection 10 to be published in the manner prescribed in this section. The publisher of the public notice shall, not later than 5 days after publication of the notice, provide to the Commission proof of the publication of the notice. The proof must include:

(a) The name of the newspaper in which the notice was published;

(b) The name of the county in which the notice was published;

(c) A statement signed by the publisher that the newspaper in which the notice was published is a newspaper of general circulation in the county in which the notice was published; and

(d) The date of the publication of the notice.

2. Except as otherwise provided in this section, if the Secretary determines that the filing or proceeding will have:

(a) A statewide effect, the Secretary shall cause the public notice to be published once in four or more newspapers of general circulation in this State, no two of which are published in the same county.

(b) An effect on a limited number of counties, the Secretary shall cause the public notice to be published once in a newspaper of general circulation in each county affected. If there is no newspaper published in an affected county, the Secretary shall cause the public notice to be published once in a newspaper of general circulation in an adjoining county.

3. The Secretary will, if practicable, post each business day on the Internet website of the Commission a current list of all public notices published pursuant to this section.

4. The public notice must be an advertisement which is not less than 1 column inch by 3 inches, with a border on all sides, and must include, as appropriate:

(a) At the beginning of the notice, a title that generally describes the relief requested or the type of proceeding scheduled;

(b) The name of the applicant, complainant or petitioner or the name of the agent for the applicant, complainant or petitioner;

(c) A brief description of the purpose of the filing or proceeding, including, without limitation, a clear and concise introductory statement that summarizes the relief requested or the type of proceeding scheduled and the effect of the relief or proceeding upon consumers;

(d) The location where the filing is on file for the public or the location and time for the proceeding; and

(e) The date by which persons must file comments, notices of intent to participate as a commenter or petitions for leave to intervene with the Commission.

Ê The public notice must be published prominently so that it is reasonably calculated to notify affected persons.

5. If the notice is:

(a) A public notice for a hearing, the Secretary shall cause the notice of hearing to be:

(1) Served on each party and published at least 10 days before the hearing is held; and

(2) Posted at the principal office of the Commission at least 3 days before the hearing is held.

(b) For a filing or a proceeding other than a hearing, the Secretary shall cause the public notice to be published in the appropriate newspapers not less than 3 working days before the proposal in the filing becomes effective or the proceeding is held.

6. The applicant, complainant or petitioner shall pay the cost of the publication.

7. On a weekly basis, the Commission will cause to be published a summary of public notices concerning the filings and proceedings described in subsection 10. The summary of public notices will be published in the Sunday edition of a newspaper of general circulation in Carson City and such other newspapers as determined by the Secretary.

8. If public notice of a filing or proceeding is published by the Secretary pursuant to this section, the Secretary’s notice shall be deemed to be legally sufficient public notice of the filing or proceeding, even if public notice in the summary of public notices is deficient or fails to be published pursuant to this section.

9. If public notice of a filing or proceeding is published in the summary of public notices pursuant to this section, the public notice in the summary of public notices shall be deemed to be legally sufficient public notice of the filing or proceeding, even if the Secretary’s public notice is deficient or fails to be published pursuant to this section.

10. Except as otherwise provided pursuant to subsection 12, the provisions of this section apply to the following filings or proceedings:

(a) An application or tariff filing involving any authorization, expansion, reduction or curtailment of services, facilities or authority, any increase in rates, fares or charges, or any change in regulations.

(b) A complaint filed with the Commission pursuant to NAC 703.651.

(d) A prehearing conference.

(e) A workshop.

(f) A consumer session.

(g) A hearing.

11. The provisions of this section do not apply to a quarterly rate adjustment made pursuant to subsection 8 or 9 of NRS 704.110.

12. The provisions of this section do not apply to a petition submitted to the Commission pursuant to NAC 703.290.

[Pub. Service Comm’n, Gen. Order 3 § 9.040, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R116-03, 10-30-2003; R202-05, 11-13-2006; R071-07, 10-31-2007; R136-07, 1-30-2008)

NAC 703.162 Inclusion of certain information in application, tariff, complaint or petition. (NRS 703.025, 704.210) A person who causes an application, tariff filing, complaint or petition described in paragraphs (a), (b) and (c) of subsection 10 of NAC 703.160 to be filed with the Commission must include in the application, tariff, complaint or petition:

1. A draft of the public notice that complies with the provisions of paragraphs (a), (b) and (c) of subsection 4 of NAC 703.160; and

2. A statement indicating whether a consumer session is required to be held pursuant to NRS 704.069.

(Added to NAC by Pub. Utilities Comm’n by R116-03, eff. 10-30-2003; A by R136-07, 1-30-2008)

NAC 703.163 Informal discovery meetings following applications for certain adjustments. (NRS 703.025, 704.210) Not later than 14 days before a utility files:

1. An application for an adjustment to a general rate pursuant to NAC 703.2201 to 703.2481, inclusive, or 703.251 to 703.2711, inclusive;

2. An application for a deferred energy accounting adjustment pursuant to NAC 704.116; or

3. A rate adjustment application for customers of natural gas service pursuant to NAC 704.6679,

Ê the applicant, the Commission’s staff assigned to regulatory operations and the Bureau of Consumer Protection in the Office of the Attorney General shall hold an informal discovery meeting.

(Added to NAC by Pub. Utilities Comm’n by R010-05, eff. 9-7-2005)

NAC 703.164 Consumer sessions. (NRS 703.025, 704.210)

1. In addition to the consumer sessions required by statute, the Commission may schedule one or more consumer sessions in any proceeding before the Commission, including, without limitation, any proceeding involving changes to schedules and rates, if the Commission determines that such consumer sessions are in the public interest.

2. The Commission will schedule each consumer session required by statute and each consumer session required by the Commission for a time and place that is intended for the convenience of the public.

3. The Commission will issue a press release before each consumer session required by statute that includes the time, date, place and purpose of the session.

4. If a consumer session required by statute or a consumer session required by the Commission is related to a filing made by a public utility, each public utility that is a party to the case shall:

(a) Provide notice of the time, place and purpose of the consumer session directly to each of its customers as an insert in the bill of charges it sends to each customer or by any other practicable method approved by the Commission;

(b) Send the notice not less than 10 days before the scheduled date of the consumer session;

(d) Be responsible for any costs incurred by the Commission as a result of the consumer session.

5. If a consumer session required by statute or a consumer session required by the Commission is a general consumer session on issues concerning public utilities, the Commission will:

(a) Make the arrangements for and secure the location of the consumer session;

(b) Be responsible for any costs incurred as a result of the consumer session; and

(1) Provide notice of the time, place and purpose of the consumer session directly to each of its customers; and

(2) Send the notice not less than 10 days before the scheduled date of the consumer session.

(Added to NAC by Pub. Utilities Comm’n by R047-02, eff. 10-24-2002; A by R116-03, 10-30-2003)

APPLICATIONS FOR PRIVILEGES, RIGHTS AND AUTHORITY

Certificates of Public Convenience and Necessity: Public Utilities

NAC 703.170 Applicability. (NRS 703.025, 704.210) The provisions of NAC 703.170 to 703.205, inclusive, apply to an application by a public utility for a certificate to begin operations as a public utility or to construct or extend its plant or system in such a manner as to require certification under NRS 704.3296 to 704.410, inclusive.

[Pub. Service Comm’n, Gen. Order 3 § 19.010, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R043-06, 12-7-2006)

NAC 703.175 General requirements. (NRS 703.025, 704.210) An applicant for a certificate of public convenience and necessity must, in addition to complying with the provisions of NAC 703.530 to 703.615, inclusive, submit the following data, either in the application or as exhibits attached to it:

1. A full description of the proposed construction or extension and the manner in which it will be constructed.

2. The names and addresses of all utilities, corporations, persons or other entities, whether publicly or privately operated, with which the proposed service or construction is likely to compete and of the cities or counties within which service will be rendered under the requested certificate. If a public utility applies to the Commission to extend or establish its water service within a county water district, a public utility or municipal utility district, other water or utility district or any area served by such a district, that district must also be named if it furnishes a similar service. The application must contain a certification that a copy of the application has been served upon or mailed to each entity named.

3. A legible map of suitable scale indicating townships, ranges and sections, and showing the location or route of the proposed construction or extension and its relation to other public utilities, corporations, persons or entities with which the proposal is likely to compete.

4. A statement identifying the franchise and the permits for health and safety that appropriate public authorities require for the proposed construction or extension. If a construction permit is required under NRS 704.820 to 704.900, inclusive, application must also be made under NAC 703.415 to 703.427, inclusive.

5. Facts showing that public convenience and necessity requires or will require the proposed construction or extension.

6. A statement detailing the estimated cost of the proposed construction or extension and the estimated annual costs, both fixed and operating, associated with the proposal, including statements or exhibits showing that the proposed construction is in the public interest and that it is economically feasible.

7. Statements or exhibits showing the financial ability of the applicant to render the proposed service and information regarding the manner in which the applicant proposes to finance the cost of the proposed construction or extension, including a copy of its most recent balance sheet and statement of income.

8. A statement of the proposed rates to be charged for service to be rendered by means of the proposed construction or extension, the rules governing service in the form of a tariff, an estimate of the number of customers to be served and an estimate of the annual revenue to be received from those customers.

9. If the applicant is a corporation, a list of:

(a) The shareholders holding 2 percent or more of the issued shares of stock of the corporation and the number of shares they hold listed by class.

(b) The number of shares of stock, listed by class, held directly by all executive officers of the corporation, including the president, vice president, secretary, treasurer and any other person in a position of similar responsibility, and the number of shares held indirectly by those officers pursuant to an ownership plan for employees.

10. Such additional information as is necessary for a full understanding of the application.

[Pub. Service Comm’n, Gen. Order 3 part § 19.020, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R188-03, 7-16-2004)

NAC 703.180 Specific requirements for small-scale providers of last resort not regulated as competitive suppliers. (NRS 703.025, 704.210) In the case of a small-scale provider of last resort that is not regulated as a competitive supplier, in addition to all other applicable requirements of NAC 703.175, an application must include the estimated number of customers and the estimated revenue to be recovered from those customers by the small-scale provider of last resort for the first 5 years of operation.

[Pub. Service Comm’n, Gen. Order 3 part § 19.020, eff. 1-1-79]—(NAC A 9-13-85; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.185 Specific requirements for electric companies. (NRS 703.025, 704.210) In the case of an electric company, in addition to all other applicable requirements of NAC 703.175, an application must include:

1. Load and resource data setting forth recorded and estimated loads (energy and demands), available capacity and margins for 2 years of actual and 3 years of estimated, on the basis of an average year.

2. The effective operating capacity of generating plants which have been rated and planned additions for the next 3 years.

3. The estimated capital and operating costs of any proposed generating plant.

4. The estimated number of customers to be served and their requirements for the first 5 years of operation.

[Pub. Service Comm’n, Gen. Order 3 part § 19.020, eff. 1-1-79]

NAC 703.190 Specific requirements for water utilities. (NRS 703.025, 704.210) In the case of a water utility, in addition to all applicable requirements of NAC 703.175, an application for a certificate of public convenience and necessity, or an application to amend an existing certificate of public convenience and necessity, to provide water service must include the following information regarding its technical, managerial and financial capability to operate the system in a reliable manner and provide continuous and adequate service to its customers:

1. To demonstrate technical capability, the applicant must provide:

(a) Evidence that there is a need for a water utility and no other utility is willing or able to serve the proposed service area.

(b) Written agreements or statements from property owners, approved subdivision maps and any other documentation that demonstrates the need for water service in the area for which the certificate is requested.

(c) Evidence that any required construction or operating permit from other state and local agencies has been obtained and is in effect, or that an application for such a permit has been submitted to other state and local agencies and the date of its anticipated issuance.

(d) A plan that demonstrates the continuing ability of the utility to meet the needs, relating to water resources, of the entire service area to be served by the utility. In lieu of such a plan, the utility may provide information which demonstrates that the utility has adequate resources to meet such needs, including, without limitation:

(1) Copies of all documents evidencing water rights and accompanying maps.

(2) Hydrological data defining the reliability of the source.

(3) Any additional information which is necessary to demonstrate the ability of the utility to meet such needs.

(e) An estimate of the number of customers to be served in the proposed service area through the first 5 years of service, and the estimated number of customers at build-out of the proposed service area.

(f) A full description of the proposed water system, including the proposed normal operating and emergency standby water facilities to serve the area for which the certificate is sought.

(g) If the utility facilities will be phased in as customers are added, a description of the phasing thresholds for each utility facility that will be phased in.

2. To demonstrate managerial capability, the applicant must provide:

(a) An operations and maintenance plan for the proposed water utility, including, without limitation:

(1) The contact information for all principal managers, certified operators and customer service representatives of the system;

(2) The normal procedures for maintenance used to ensure the proper operation of the system; and

(3) A plan describing how worn-out utility facilities are to be replaced.

(b) A standard operating procedure for all employee communications not covered by the proposed tariff.

(d) Evidence that the applicant will maintain its books and records consistent with the system of accounts established by the National Association of Regulatory Utility Commissioners for water utilities.

3. To demonstrate financial capability, the applicant must provide:

(a) An explanation of whether and to what extent customers will directly or indirectly make contributions to the costs of the facilities of the proposed water system. The explanation must indicate whether the applicant intends to assess charges or has assessed charges for the extension of any lines and whether the price of lots or units in the proposed service area will reflect the cost of the investment in the proposed system.

(b) Evidence that the proposed revenues from reasonable rates will give the applicant an opportunity to earn a fair return on its regulated rate base.

(c) A statement of the estimated operating revenues and expenses, including taxes and depreciation, for the first 5 years of operation in the proposed service area for each major class of service. If the applicant anticipates that the system will initially operate at a loss, the statement must identify the sources of money that will be used to sustain the operation of the system during that initial period.

(d) A depreciation schedule for the different water treatment facilities.

(e) A method for replacing rate base when the utility facility reaches the end of its service life.

(f) A copy of a performance bond or other suitable assurance deposited with the Federal Government or local government to guarantee construction of any improvements or infrastructure required for approval of final subdivision maps.

[Pub. Service Comm’n, Gen. Order 3 part § 19.020, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R054-97, 11-14-97; R043-06, 12-7-2006)

NAC 703.195 Specific requirements for wastewater utilities. (NRS 703.025, 704.210) In the case of a wastewater utility, in addition to all other applicable requirements of NAC 703.175, an application for a certificate of public convenience and necessity must include the following information regarding its technical, managerial and financial capability to operate the system in a reliable manner and provide continuous and adequate service to its customers:

1. To demonstrate technical capability, the applicant must provide:

(a) Evidence that there is a need for a wastewater utility and no other utility is willing or able to serve the proposed service area.

(b) Written agreements or statements from property owners, approved subdivision maps and any other documentation that demonstrates the need for wastewater service in the area for which the certificate is requested.

(d) A plan that demonstrates the continuing ability of the utility to meet the needs, relating to wastewater treatment and disposal, of the entire service area to be served by the utility.

(f) A full description of the proposed wastewater system, including the proposed normal operating and emergency standby wastewater facilities to serve the area for which the certificate is sought.

(g) If the utility facilities will be phased in as customers are added, a description of the phasing thresholds for each utility facility that will be phased in.

2. To demonstrate managerial capability, the applicant must provide:

(a) An operations and maintenance plan for the proposed wastewater utility, including, without limitation:

(1) The contact information for all managers, certified operators and customer service representatives of the system.

(2) The normal procedures for maintenance used to ensure the proper operation of the system.

(3) A plan describing how worn-out utility facilities are to be replaced.

(b) A standard operating procedure for all employee communications not covered by the proposed tariff.

3. To demonstrate financial capability, the applicant must provide:

(a) An explanation of whether and to what extent customers will directly or indirectly make contributions to the costs of the facilities of the proposed wastewater system. The explanation must include an indication of whether the applicant intends to assess charges for the extension of any lines and whether the price of lots or units in the proposed service are will reflect the cost of the investment in the proposed system.

(b) Evidence that the proposed revenues from reasonable rates will give the applicant an opportunity to earn a fair return on its regulated rate base.

(d) A depreciation schedule for the different wastewater treatment facilities.

(e) A method for replacing rate base when the utility facility reaches the end of its service life.

[Pub. Service Comm’n, Gen. Order 3 part § 19.020, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R043-06, 12-7-2006)

NAC 703.197 Specific requirements for annexations by existing water and wastewater utilities. (NRS 703.025, 704.210) In the case of an annexation by an existing water or wastewater utility, in addition to all other applicable requirements of NAC 703.175, an application for a certificate of public convenience and necessity must include:

1. The information required by NAC 703.190 or 703.195, as it pertains to the service area to be annexed; and

2. The anticipated effect, if any, that the annexation will have on the ability of the utility to provide reasonable and adequate service and facilities to its existing customers.

(Added to NAC by Pub. Utilities Comm’n by R043-06, eff. 12-7-2006)

NAC 703.199 Annual requirements for water and wastewater utilities. (NRS 703.025, 704.210) After obtaining an initial certificate of public convenience and necessity to begin operations as a public utility, a water or wastewater utility shall submit, with its annual report filed with the Commission pursuant to NRS 703.191, information showing that the conditions set forth in subsections 3 to 6, inclusive, of NRS 445A.540 or subsections 4, 5, 6 and 8 of NRS 445A.895 have been met.

(Added to NAC by Pub. Utilities Comm’n by R043-06, eff. 12-7-2006)

NAC 703.200 Specific requirements for water and sewer companies that are no longer exempt. (NRS 703.025, 704.210) In the case of an application by a water or sewer company that is no longer exempt under NRS 704.021, in addition to the information required by NAC 703.175 and 703.190 or 703.195, an application must include:

1. A balance sheet as of the date the utility reached the statutory jurisdictional requirements of gross revenues and number of customers of NRS 704.021.

2. A schedule of accounts showing the original cost of any plant in service as of the date of the balance sheet or an estimate of the cost of any plant proposed by a new water company, or both a schedule of accounts and an estimate of costs.

3. A depreciation schedule by account for each plant showing the method and rate of depreciation, and accumulated depreciation as of the date of the balance sheet.

4. An operating statement for the most recent 12-month period ending on the date of the balance sheet, showing operating revenues and expenses.

5. A statement showing the number of customers being served as of the date of the balance sheet.

6. A statement of the rates for service charged by the utility from the date of the utility’s inception to and including the date of filing of the application for a certificate. Rates for service may not be increased without an order of the Commission that approves the new rates after the utility has reached the jurisdictional requirements of gross revenues and number of customers set forth in NRS 704.021. An application pursuant to the provisions established for pleadings and motions and the requirements for public utilities requesting adjustments in rates must be filed if the utility proposes to increase its existing rates or charges. No application may be filed pursuant to NRS 704.100 until the utility has been issued a certificate of public convenience and necessity by the Commission.

[Pub. Service Comm’n, Gen. Order 3 part § 19.020, eff. 1-1-79]—(NAC A 3-19-87; A by Pub. Utilities Comm’n by R079-99, 11-16-99)

NAC 703.205 Specific requirements for gas companies. (NRS 703.025, 704.210) In the case of a utility which transmits or distributes natural gas or liquefied petroleum, in addition to the information required by NAC 703.175, an application must include:

1. The estimated number of customers and their estimated requirements for the first 5 years of operation. These requirements must be categorized by priorities as set forth in NAC 704.501.

2. A statement of the current sources of supply of natural gas and an estimate of the sources of supply of natural gas for the first 5 years of operation. These sources must be delineated by quantity or availability and, to the extent possible, by costs associated with delivery.

3. A description of all the utility’s existing or planned facilities for storage and compression of natural gas.

[Pub. Service Comm’n, Gen. Order 3 part § 19.020, eff. 1-1-79]—(NAC A 1-6-84)

Changes in Rates: Public Utilities Other Than Telecommunication Providers

NAC 703.2201 Definitions. (NRS 703.025, 704.210) As used in NAC 703.2201 to 703.2481, inclusive, unless the context otherwise requires:

1. “Uniform system of accounts” means uniform system of accounts prescribed for public utilities and licensees, classes A, B, C and D, which were published by the Federal Energy Regulatory Commission and adopted by reference in NAC 704.650.

2. “Unit” means the quantitative measurement of an item, or level of use, consumption or effort.

3. “Unit rate” is that rate which when multiplied by the number of units within a given period results in the aggregate dollar amount applicable to that period.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 2, eff. 10-14-82]—(NAC A 1-5-89; 7-7-94; A by Pub. Utilities Comm’n by R049-06, 11-13-2006)

NAC 703.2205 Applicability. (NRS 703.025, 704.210) The provisions of NAC 703.2201 to 703.2481, inclusive, apply to all:

1. Public utilities which produce, deliver or furnish electricity or gas;

2. Telegraph and community antenna television companies; and

3. Public utilities which furnish water or sewer service, or both, and are not subject to the provisions of NAC 704.570 to 704.628, inclusive, under the jurisdiction of the Commission.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 1, eff. 10-14-82]—(NAC A 1-6-84; 10-26-84; 1-5-89; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

NAC 703.2207 Notice of intent to file application for adjustment in rates. (NRS 703.025, 704.210)

1. A public utility that furnishes electricity, gas or water which has an annual gross revenue of more than $1,000,000 from intrastate operations in this State must provide written notice of its intent to file an application for adjustments in rates to:

(a) The Secretary of the Commission;

(b) The staff of the Commission assigned to regulatory operations; and

2. The written notice must be filed at least 60 days before the anticipated date for filing the application for adjustments in rates. If the public utility files the written notice, it is not required to file the application for adjustments in rates on the anticipated filing date or any time thereafter.

3. The written notice must contain a list of the components on which the public utility expects to base its application for adjustments in rates, including:

(a) Cost of capital;

(b) Depreciation;

(d) Design of the proposed rates; and

(e) Any other material issues known at the time the notice is filed.

(Added to NAC by Pub. Service Comm’n, eff. 7-7-94)

NAC 703.2208 Submission of master document for request of data. (NRS 703.025, 704.210)

1. A public utility that furnishes electricity, gas or water which has an annual gross revenue of more than $1,000,000 from intrastate operations in this State and which files an application for adjustments in rates must submit a master document for the request of data, together with answers to the questions contained in the document, to:

(a) The Consumer’s Advocate; and

(b) The staff of the Commission assigned to regulatory operations.

2. The public utility shall:

(a) Submit the master document for the request of data, together with the answers, on the same date as it files the application for adjustments in rates.

(b) Complete as much of the answers to the questions in the master document as possible given the available applicable data and any agreements for the confidentiality of information which have been executed.

3. Except as otherwise provided in this subsection, the master document for the request of data must be submitted in the illustrative format required by the Commission. The illustrative format for a particular master document for the request of data may be changed if the Consumer’s Advocate, the staff of the Commission and the public utility agree to the change. The illustrative format for the master document for the request of data may be obtained at the offices of the Commission.

4. The following entities may request the Commission to change the illustrative format for the master document for the request of data:

(a) The Consumer’s Advocate;

(b) The staff of the Commission; or

5. Any changes which the Commission makes to the illustrative format for the master document for the request of data do not apply to a master document for the request of data submitted by a public utility within 90 days after the Commission approves the changes.

(Added to NAC by Pub. Service Comm’n, eff. 7-7-94)

NAC 703.2209 Meeting with Consumer’s Advocate and staff of Commission before filing application. (NRS 703.025, 704.210)

1. A public utility that furnishes electricity, gas or water which has an annual gross revenue of more than $1,000,000 from intrastate operations in this State and which intends to file an application for adjustments in rates must meet with the Consumer’s Advocate and the staff of the Commission assigned to regulatory operations at least 20 days before the anticipated date for filing the application for adjustments in rates.

2. At the meeting, the public utility shall provide updated information regarding the application for adjustments in rates, including:

(a) Cost of capital;

(b) Depreciation;

(d) Design of the proposed rate; and

(e) Any other material issues known at the time of the meeting.

3. At the meeting, those persons in attendance shall:

(a) Develop guidelines for a preliminary plan for conducting audits. The guidelines must address all matters relating to the audit, including:

(1) The timing of the audits and any necessary meetings to coordinate audits conducted at the site, whether within or outside the State, by specialized personnel from the public utility and auditors from the Bureau of Consumer Protection and the staff of the Commission.

(2) The number of persons representing each interest who will participate in the audits.

(3) The facilities and the supplies that the auditors will need at the locations of the audits.

(b) Discuss a plan and schedule for discovery, and methods of minimizing the duplication of discovery requests.

(d) Discuss the review of computer models for data contained in the filing.

(e) Determine which items on the master document for the request of data must be provided on a computer disc or other computer media, and which items must be provided on paper.

(f) Discuss the need for and timing of future meetings, including:

(1) A conference between the public utility, the staff of the Commission and a representative of the Bureau of Consumer Protection to discuss the results of the audits.

(2) A mandatory settlement conference between all interests to the proceeding. The staff of the Commission shall convene the settlement conference at least 14 calendar days before the scheduled first day of the hearing on the application for adjustments in rates in accordance with a procedural schedule approved by the Commission.

(Added to NAC by Pub. Service Comm’n, eff. 7-7-94)

NAC 703.2211 Information required in application. (NRS 703.025, 704.210) An application by a public utility for adjustments in rates or charges must include:

1. An exhibit in the format of a tariff showing in full the rates, fares or rules desired to be put into effect or the general relief requested.

2. An exhibit in the format of a tariff showing in full the rates, fares or rules which will be superseded by the proposed changes.

3. A complete and accurate explanation of the circumstances and conditions relied upon as justification for the application.

4. An exhibit referencing any prior proceeding before the Commission which has been held and which is related to any of the proposals contained in the application.

5. A brief description of the application which will be used by the Secretary in drafting the public notice required in NAC 703.160. This description must include:

(a) The utility’s reasons for the application or filing of a tariff;

(b) The estimated effect that approval of the application or tariff by the Commission will have on the applicant’s annual revenues; and

(c) The estimated effect that approval of the application or tariff by the Commission will have on rates and charges paid by each class of the utility’s customers.

6. A proposed notice of hearing which conforms to the requirements of paragraphs (b), (c) and (d) of subsection 2 of NRS 233B.121.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 3, eff. 10-14-82]—(NAC A 3-19-87; A by Pub. Utilities Comm’n by R107-07, 12-4-2007)

NAC 703.2215 Information to be filed with application. (NRS 703.025, 704.210) The applicable statements and schedules prescribed under NAC 703.2265 to 703.2455, inclusive, and an index of these statements and schedules must accompany the application when it is filed with the Commission. The index must indicate which statements and schedules are supported by workpapers prepared by the applicant.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 4, eff. 10-14-82]—(NAC A 1-6-84)

NAC 703.2221 Additional information. (NRS 703.025, 704.210) The list contained in NAC 703.2265 to 703.2455, inclusive, is not exclusive. Any additional information necessary to determine the fairness and reasonableness of the proposed change must be supplied upon request of the Commission in a particular case.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 4a, eff. 10-14-82]

NAC 703.2225 Illustrative format. (NRS 703.025, 704.210) Copies of illustrative statements and schedules will be available at the Commission’s offices during business hours for use by prospective applicants.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 5, eff. 10-14-82]

NAC 703.2231 Scope of presentation and preparation for hearing. (NRS 703.025, 704.210) An applicant must be prepared to go forward at a hearing on the data which have been submitted and to sustain the burden of proof of establishing that its proposed changes are just and reasonable and not unduly discriminatory or preferential. To avoid delay by the Commission in its consideration of the proposed changes, the applicant must ensure that the material it relied upon is of such composition, scope and format that it would serve as its complete case if the rate is suspended and the matter is set for hearing.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 6, eff. 10-14-82]

NAC 703.2235 Format of statements and schedules. (NRS 703.025, 704.210) Statements and schedules must generally follow the illustrative examples mentioned in NAC 703.2225. Each item must be labeled, be mathematically correct, be properly cross-referenced and it must indicate the date or period covered by the statement or schedule.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 7, eff. 10-14-82]

NAC 703.2241 Nonapplicable statements and schedules. (NRS 703.025, 704.210) All statements and schedules required to be submitted to the Commission pursuant to NAC 703.2265 to 703.2461, inclusive, must be in alphabetical sequence. If the applicant omits any required statement or schedule in the belief that it is not applicable, a written explanation for the omission must be submitted in lieu of the required statement or schedule.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 8, eff. 10-14-82]

NAC 703.2245 Recorded data and adjustments. (NRS 703.025, 704.210)

1. Amounts which purport to represent recorded data and are included in a statement or schedule must be reported in a separate column or columns. Adjustments to recorded data must also be reported in a separate column or columns so that the recorded data and adjustment thereto and adjusted amounts are clearly disclosed.

2. For the purposes of subsection 4 of NRS 704.110, adjustments which show the effects, on an annualized basis, of all expected changes in circumstances, and which are reasonably known and measurable with reasonable accuracy, must be reported in a separate column or columns so that the recorded data, adjustments to recorded data and adjustments that show the effects of all expected changes in circumstances are clearly disclosed.

3. Any adjustment to recorded data must be supported by workpapers detailing the calculations, units, unit rates and any other accounting or financial data necessary to completely explain and justify the proposed adjustments.

4. The applicant shall calculate the adjustments to show the annual effect of the change in units or in the unit rate, or both, upon the applicant’s weighted cost of capital, rate base or summary of earnings.

5. If the Commission considers an adjustment for all expected changes in circumstances in accordance with subsection 4 of NRS 704.110, the Commission may also consider all reasonably projected or forecasted offsets in revenue and expenses that are directly attributable to or associated with the expected changes in circumstances under consideration.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 9, eff. 10-14-82]—(NAC A by Pub. Utilities Comm’n by R049-06, 11-13-2006)

NAC 703.2247 Statements of effects of expected changes in circumstances: Submission by certain natural gas utilities. (NRS 703.025, 704.210) If a public utility which purchases natural gas for resale elects, pursuant to subsection 4 of NRS 704.110, to submit with its general rate application a statement showing the effects, on an annualized basis, of all expected changes in circumstances, it shall submit the application and statement not later than 155 days after the end of the 12-month period described in subsection 3 of NRS 704.110 for which data was available when the application was prepared. The statement must include all expected changes in circumstances for the 12-month period that ends 210 days after the application is submitted.

(Added to NAC by Pub. Utilities Comm’n by R049-06, eff. 11-13-2006)

NAC 703.2248 Statements of effects of expected changes in circumstances: Factors for consideration by Commission. (NRS 703.025, 704.210) For the purposes of subsection 4 of NRS 704.110, the Commission will consider expected changes in circumstances to be reasonably known and measurable with reasonable accuracy if the expected changes in circumstances:

1. Consist of specific and identifiable events or programs rather than general trends, patterns or developments;

2. Have an objectively high probability of occurring to the degree, in the amount and at the time expected; and

3. Are primarily measurable by recorded or verifiable revenues and expenses and are easily and objectively calculated, with the calculation of the expected changes relying only secondarily on estimates, forecasts, projections or budgets.

(Added to NAC by Pub. Utilities Comm’n by R049-06, eff. 11-13-2006)

NAC 703.2251 Reliance on other data. (NRS 703.025, 704.210) If the applicant has relied on data other than that presented in the statements and schedules prescribed by NAC 703.2201 to 703.2481, inclusive, such other data must be submitted in addition to the prescribed statements and schedules.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 10, eff. 10-14-82]—(NAC A 1-5-89)

NAC 703.2255 Supporting data. (NRS 703.025, 704.210)

1. The data in support of the proposed change in rates must include the required recorded data, adjustments and other computations and information on which the applicant relies to justify the proposed rates.

2. Any data or summaries included in the application which reflect the book of accounts must be supported by accounting workpapers. The workpapers must contain, in separate columns, all necessary particulars from which an auditor may readily identify the book data included in the filing and a verification that such data are in agreement with the applicant’s book of accounts. All statements, schedules and workpapers must be prepared in accordance with the classifications provided in the uniform system of accounts. Workpapers in support of all adjustments, computations and other information included in the application must be cross-referenced, contain all relevant details and be available for inspection.

3. Each applicant shall prepare and maintain workpapers sufficient to support the application. Failure to produce promptly such workpapers on request of an authorized representative of the Commission or the Consumer’s Advocate is a cause for dismissal by the Commission of the application in its entirety. In addition to the workpapers, the following material, normally prepared by the applicant, must be made available for verification and analysis by the Commission’s staff and the Consumer’s Advocate. Upon request, a copy of the information must be furnished. If required for the analysis, the Commission will request:

(a) Copies of monthly financial reports prepared for managerial purposes.

(b) Copies of the accounting analyses of balance sheet accounts.

(c) Complete trial balances of all the balance sheet accounts at the beginning and end of the 12 months of actual experience, and revenue and expense accounts for the 12 months of recorded data used for the application.

(d) Analyses of the miscellaneous revenues and related expenses included in the submitted results of operations.

(e) Analyses of accounts showing retained earnings or capital surplus.

(f) If the applicant is submitting a statement pursuant to subsection 4 of NRS 704.110, the most recent operating budget.

(g) Copies of all relevant reports and correspondence with other regulatory agencies.

(h) Copies of all relevant reports, returns and correspondence with federal, state and local authorities on taxes.

(i) If not confidential, copies of all managerial studies, reports and letters prepared by employees of the company and outside auditors.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 11, eff. 10-14-82]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R049-06, 11-13-2006)

NAC 703.2261 Filing of information relating to deferred energy accounting. (NRS 703.025, 704.210) Any information submitted that relates to deferred energy accounting must be prepared and filed in accordance with NAC 704.023 to 704.195, inclusive.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 12, eff. 10-14-82]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001)

NAC 703.2265 Filing requirements for utilities with annual gross operating revenues of $250,000 or more. (NRS 703.025, 704.210) In filing its application, an applicant whose annual operating revenues are $250,000 or more must include statements A to E, inclusive, F and G with their respective schedules, H to J, inclusive, K, L and M with their respective schedules and N to P, inclusive, as these statements and schedules are described in NAC 703.2251 to 703.2451, inclusive.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 13, eff. 10-14-82]

NAC 703.2271 Statement A. (NRS 703.025, 704.210) Statement A must consist of a statement of financial position based on the total company, in the order of accounts prescribed by the uniform system of accounts, as of the beginning and end of the period of testing. A statement of financial position on a consolidated basis must be included if the applicant is a member of an associated group of companies.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 14, eff. 10-14-82]

NAC 703.2275 Statement B. (NRS 703.025, 704.210) Statement B must consist of a statement of income based on the total company, in the order of accounts prescribed by the uniform system of accounts for the period for testing. A statement of income on a consolidated basis must be included if the utility is a member of an associated group of companies.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 15, eff. 10-14-82]

NAC 703.2281 Statement C. (NRS 703.025, 704.210) Statement C must consist of a statement that shows the balance at the beginning of the period of testing with debits and credits to retained earnings during such a period according to descriptive captions and the resultant balance at the end of the period of testing.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 16, eff. 10-14-82]

NAC 703.2285 Statement D. (NRS 703.025, 704.210)

1. Statement D must consist of a statement satisfying the letter and spirit of the Statement of Financial Accounting Standards No. 95 issued by the Financial Accounting Standards Board.

2. The Commission hereby adopts by reference Statement No. 95 which is entitled “Statement of Cash Flows,” published in November 1987.

3. A copy of Statement No. 95 may be obtained from the Commission’s office for a price of $5.50.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 17, eff. 10-14-82]—(NAC A 12-2-91)

NAC 703.2291 Statement E. (NRS 703.025, 704.210) Statement E must contain any report, opinion or footnote applicable to any portion of the period included in statements A, B, C and D or related footnotes which were made by any accountant or auditor.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 18, eff. 10-14-82]

NAC 703.2295 Statement F. (NRS 703.025, 704.210) Statement F must contain a statement that shows the dollar amount of each component of the capital structure, its related cost percentage and the proportion of each component of the capital structure to the total capital structure. This statement must also show the percentage of the overall rate of return requested and the general reasons therefor.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 19, eff. 10-14-82]

NAC 703.2301 Schedule F-1. (NRS 703.025, 704.210) Schedule F-1 is a schedule that shows the weighted average cost of debt capital based upon the following data for each class and series of debt outstanding according to the balance sheet as of the end of the period of testing and the cost of new securities issued pursuant to subsection 3 or 4 of NRS 704.110:

1. Title;

2. Date of issuance and final maturity;

3. Interest rate;

4. Principal amount of the issue, gross proceeds, discount and any premiums;

5. The amount and percentage of the gross proceeds of the issuance expense, including underwriters’ discounts or commissions;

6. Principal amount of the issue outstanding, unamortized discount and expense and net proceeds outstanding;

7. Effective cost of the money;

8. If the issue is owned by an affiliate, the name and relationship of the owner; and

9. If the company has acquired at a discount or premium some part of the outstanding debt which could be used in meeting sinking fund requirements or for other reasons, it shall show the annual amortization of the discount or premium for each series of debt from the date of reacquisition, over the remaining life of the debt being retired and separately show the total discount and premium as a result of such amortization, applicable to the period of testing.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 20, eff. 10-14-82]—(NAC A by Pub. Utilities Comm’n by R049-06, 11-13-2006)

NAC 703.2305 Schedule F-2. (NRS 703.025, 704.210) Schedule F-2 is a schedule that shows the weighted average cost of preferred stock capital based upon the following data for each class and series of preferred stock outstanding according to the balance sheet as of the end of the period of testing and the cost of new securities issued pursuant to subsection 3 or 4 of NRS 704.110:

1. Title;

2. Date of issuance;

3. If callable, the call price;

4. If convertible, the terms of conversion;

5. Dividend rate;

6. Par or stated amount of the issue, gross proceeds and any premiums;

7. The amount and percentage of gross proceeds of the issuance expense, including underwriters’ discounts or commissions;

8. Net proceeds;

9. Cost of the money;

10. Whether the issue was offered to stockholders through subscription rights or to the public; and

11. If the issue is owned by an affiliate, the name and relationship of the owner.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 21, eff. 10-14-82]—(NAC A by Pub. Utilities Comm’n by R049-06, 11-13-2006)

NAC 703.2311 Schedule F-3. (NRS 703.025, 704.210) Schedule F-3 is a schedule that shows the derivation and justification for the cost of common equity included in statement F.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 22, eff. 10-14-82]

NAC 703.2315 Schedule F-4. (NRS 703.025, 704.210) Schedule F-4 is a schedule that shows for each issue of common stock during the 6 years preceding the balance sheet as of the end of the period of testing and the cost of new securities issued pursuant to subsection 3 or 4 of NRS 704.110:

1. Number of shares sold;

2. Gross proceeds at offering price;

3. Amount and percentage of gross proceeds of underwriters’ discounts or commissions;

4. Proceeds to applicant;

5. Amount and percentage of gross proceeds of issuance expenses; and

6. Net proceeds showing the offering price and net proceeds per share.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 23, eff. 10-14-82]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R049-06, 11-13-2006)

NAC 703.2321 Statement G. (NRS 703.025, 704.210) Statement G is a summary of the overall rate base from the figures contained on the supporting schedules.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 24, eff. 10-14-82]

NAC 703.2325 Schedule G-1. (NRS 703.025, 704.210) Schedule G-1 is a schedule summarizing the amounts of utility plant for Nevada classified by primary accounts as of the beginning of the period of testing, the book additions and reductions (in separate columns) during the 12 months, and the balances at the end of such a period. In adjoining columns there must be shown the claimed adjustments, if any, to the book balances and the total cost of plant. All adjustments must be fully and clearly explained in the supporting material submitted.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 25, eff. 10-14-82]

NAC 703.2331 Schedule G-2. (NRS 703.025, 704.210) Schedule G-2 is a statement that shows by primary accounts the accumulated provisions for depreciation, amortization and abandonment as of the beginning of the period of testing, the book additions and reductions during the 12 months, and the balances at the end of such a period. In adjoining columns there must be shown adjustments to these ending book balances and the total adjusted balances. All adjustment must be clearly and fully explained in the supporting material submitted.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 26, eff. 10-14-82]

NAC 703.2335 Schedule G-3. (NRS 703.025, 704.210) Schedule G-3 is a schedule that provides a description of the methods, procedures and rates used in depreciating or amortizing plant which were previously authorized by the Commission, and a description of any changes in methods or rates since the last order of the Commission setting rates or charges for the applicant.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 27, eff. 10-14-82]

NAC 703.2341 Schedule G-4. (NRS 703.025, 704.210) Schedule G-4 is a schedule that shows the recorded balances for each component of materials and supplies by month, so that an allowance for the average of 13 months’ balances of materials and supplies can be calculated. The schedule must also show the allocation of each component to each account of materials and supplies for Nevada jurisdictional operations. An applicant reporting less than $250,000 in annual gross operating revenues may compute the materials and supplies rate base component by averaging the beginning and ending balances for the period of testing.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 28, eff. 10-14-82]

NAC 703.2343 Schedule G-5. (NRS 703.025, 704.210) Schedule G-5 is required if a utility’s application includes a provision for cash to be used as working capital. This schedule must contain an explanation of the inclusion of this amount and a schedule showing the derivation of the amount of cash so requested.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.2345 Statement H. (NRS 703.025, 704.210)

1. Statement H is a summary of the overall results of operations developed from the supporting schedules and statements. The statements must show:

(a) The amounts as recorded on the applicant’s books;

(b) Adjustments during the year of testing for known changes; and

(1) Estimated adjustments to be certified by the applicant in accordance with subsection 3 of NRS 704.110; or

(2) Adjustments for expected changes in circumstances that are reasonably known and measurable with reasonable accuracy in accordance with subsection 4 of NRS 704.110 relating to a public utility which purchases natural gas for resale.

2. The statement must also include the requested rate of return and must show the application of the requested rate of return to the overall rate base.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 29, eff. 10-14-82]—(NAC A by Pub. Utilities Comm’n by R049-06, 11-13-2006)

NAC 703.2351 Statement I. (NRS 703.025, 704.210) If statement H contains adjustments for estimated changes beyond the actual year of testing, certification of these amounts must be submitted in statement I in accordance with subsection 3 of NRS 704.110 unless filing in accordance with subsection 4 of NRS 704.110, in which case statement I is not necessary. The certified amounts must be shown in statement I in the same format as statement H. Statement I must begin with the results of operations as recorded and as adjusted for known changes during the year of testing from statement H. Each certified adjustment must be then shown. The necessary detail used to support each certified adjustment must be submitted with the statement.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 & 30, eff. 10-14-82]—(NAC A by Pub. Utilities Comm’n by R049-06, 11-13-2006)

NAC 703.2355 Statement J. (NRS 703.025, 704.210)

1. Statement J must contain a statement that shows the revenues used to operate a utility classified in accordance with the accounts for operating revenue prescribed by the uniform system of accounts. Sales and service must be classified as between department, jurisdictional and nonjurisdictional, as applicable.

2. Jurisdictional operating revenues must be adjusted to show the annual effect of changes occurring during the period of testing. Adjusted sales for each rate schedule to show the annual effect of increases or decreases in the number of customers during such a period may be computed using the number of customers at the end of the period and the average annual usage and demand per customer, except where the applicant can attribute changes in sales directly to changes in the usage or demand of individual customers.

3. If statement H contains adjustments for estimated changes in expenses beyond the actual recorded year of testing and the application is being certified pursuant to subsection 3 of NRS 704.110, the applicant in its statement I shall adjust jurisdictional operating revenues to show the annual effect of changes occurring during the period for certification. Adjusted sales for each rate schedule to show the annual effect of increases or decreases in the number of customers during the period for certification may be computed using the number of customers and the average annual usage and demand per customer at the end of the period for certification, except in those instances where the applicant can attribute changes in sales directly to changes in the usage or demand of individual customers.

4. Statement J must disclose, using supporting schedules as necessary, revenues by months and revenue totals for the period of testing. Statement J must also disclose, using supporting schedules as necessary, the revenue totals for such a period from adjusted jurisdictional sales as computed under the presently effective and proposed rates together with the differences in the annual revenues, and the actual annual revenues from the nonjurisdictional sales.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 31, eff. 10-14-82]—(NAC A by Pub. Utilities Comm’n by R049-06, 11-13-2006)

NAC 703.2361 Statement K. (NRS 703.025, 704.210) Statement K must contain:

1. A statement that shows the expenses for operation and maintenance according to each account of the uniform system of accounts. The expenses must be shown under the following appropriate column headings, with subtotals for each functional classification:

(a) Expenses for operation and maintenance as booked for the period of testing;

(b) Any adjustment to expenses booked; and

2. A detailed explanation of any adjustment and the manner of determination must be supplied.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 32, eff. 10-14-82]

NAC 703.2365 Schedule K-1. (NRS 703.025, 704.210) Schedule K-1 is a schedule that shows the segregation of expenses for operations and maintenance, and their functional groupings into a component for labor and a component embracing the remainder of the expenses. This segregation into components must be applicable to the recorded accounts balances for the year of testing and to any adjustments thereto.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 33, eff. 10-14-82]

NAC 703.2371 Schedule K-2. (NRS 703.025, 704.210) Schedule K-2 must contain an analysis of each account in schedule format for the year of testing disclosing:

1. The classification of principal charges and credits for advertising costs;

2. Particulars of supporting computations and accounting bases;

3. A description of service and related amounts for which liability is incurred or accrued; and

4. The name of the firm or person rendering the services.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 34, eff. 10-14-82]

NAC 703.2375 Schedule K-3. (NRS 703.025, 704.210) Schedule K-3 must include an analysis of each account in schedule format for the year of testing disclosing:

1. The classification of principal charges and credits for outside companies which were employed;

2. Particulars of supporting computations and accounting bases;

3. A description of service and related amounts for which liability is incurred or accrued; and

4. The name of the firm or person rendering the services.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 35, eff. 10-14-82]

NAC 703.2381 Schedule K-4. (NRS 703.025, 704.210) Schedule K-4 must include an analysis of each account in schedule format for the year of testing disclosing:

1. The classification of principal charges and credits for pensions and benefits for employees;

2. Particulars of supporting computations and accounting bases;

3. A description of service and related amounts for which liability is incurred or accrued; and

4. The name of the firm or person rendering the services.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 36, eff. 10-14-82]

NAC 703.2385 Schedule K-5. (NRS 703.025, 704.210) Schedule K-5 must include an analysis of each account in schedule format for the year of testing disclosing:

1. The classification of principal charges and credits for expenses caused by regulations of the Commission;

2. Particulars of supporting computations and accounting bases;

3. A description of service and related amounts for which liability is incurred or accrued; and

4. The name of the firm or person rendering the services.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 37, eff. 10-14-82]

NAC 703.2391 Schedule K-6. (NRS 703.025, 704.210) Schedule K-6 must include an analysis of each account in schedule format for the year of testing disclosing:

1. The classification of principal charges and credits for miscellaneous general expenses;

2. Particulars of supporting computations and accounting bases;

3. A description of service and related amount in dollars for which liability is incurred or accrued; and

4. The name of the firm or person rendering the services.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 38, eff. 10-14-82]

NAC 703.2395 Schedule K-7. (NRS 703.025, 704.210) If the expense accounts contain charges or credits from associated companies or nonutility departments of the applicant, the applicant must submit schedule K-7 for each such associated company or nonutility department showing:

1. The amount of the charges or credits during each month and in total for the year of testing;

2. The account classification or classification charged or credited;

3. A description of the specific services performed for, or by, the associated company or nonutility department; and

4. The bases used in determining the amounts of the charges or credits.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 39, eff. 10-14-82]

NAC 703.2401 Statement L. (NRS 703.025, 704.210)

1. Statement L must contain a statement that shows separately the plant depreciation and amortization expense by functional classifications. These expenses must be shown in separate columns as follows:

(a) Expenses for the period of testing;

(b) Any adjustment to such expense; and

2. The bases, methods, essential computations and derivation of unit rates for the calculation of depreciation and amortization for the 12 months of actual experience and for the adjustments thereto, if any, must be fully and clearly explained. The amounts of depreciable plant must be shown by functional accounts. Any deviation from the rates used in disposing of the applicant’s last previous filing or determination by the Commission must be explained, showing the rate previously used and the supporting data for the new rate used for this application.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 40, eff. 10-14-82]

NAC 703.2405 Schedule L-1. (NRS 703.025, 704.210) Schedule L-1 must contain a schedule that reconciles the depreciable plant listed on statement L with the aggregate investment in plant shown on schedule G-2 and shows the distribution of depreciation and amortization expenses to the various general ledger accounts.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 41, eff. 10-14-82]

NAC 703.2411 Statement M. (NRS 703.025, 704.210) Statement M must contain a statement that shows the computation of allowances for federal income taxes for the period of testing. To indicate the accounting classification applicable to the amount claimed, the computation of the allowance for federal income tax must show separately the amounts designated as current tax and deferred tax.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 42, eff. 10-14-82]

NAC 703.2415 Schedule M-1. (NRS 703.025, 704.210) Schedule M-1 must contain a complete reconciliation of the book net income with taxable net income as reported to the United States Internal Revenue Service for the most recent year for which a tax return was filed and the 3 preceding years. A complete explanation of all items in the reconciliation must be submitted. If the tax allowances claimed give effect to omission of items appearing in the reconciliations for the most recent tax return or to inclusion of items not appearing therein, the reasons for the omissions or inclusions must be submitted.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 43, eff. 10-14-82]

NAC 703.2421 Schedule M-2. (NRS 703.025, 704.210)

1. If tax depreciation differs from book depreciation, the applicant must file schedule M-2 showing the computation of the tax depreciation indicating:

(a) Differences between book and tax depreciation on a straight-line basis; and

(b) The excess of any accelerated depreciation and amortization used for tax purposes over straight-line depreciation.

2. The schedule must pertain to the most recent year for which a tax return was filed and for the 3 previous years.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 44, eff. 10-14-82]

NAC 703.2425 Schedule M-3. (NRS 703.025, 704.210)

1. If the applicant joins in the filing of a consolidated federal income tax return, the applicant must file schedule M-3 showing the net taxable income or loss for each company or regulated entity in the consolidation, including an adjustment of the excess of accelerated depreciation and amortization of emergency facilities over straight-line depreciation for each company involved.

2. The applicant must also submit the details of consolidation adjustment and a computation of the system tax liability based on the consolidated net income for the last tax year ending within the period of testing, or immediately prior thereto, for which a tax return was filed. In addition, the applicant must include a computation showing the percentage of tax savings arising from consolidation for the taxable year covered by such a period.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 45, eff. 10-14-82]

NAC 703.2431 Schedule M-4. (NRS 703.025, 704.210) Schedule M-4 must contain a schedule that shows monthly book balances of accumulated deferred income taxes for each of the 12 months during the period of testing.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 46, eff. 10-14-82]

NAC 703.2435 Schedule M-5. (NRS 703.025, 704.210)

1. Schedule M-5 must contain a schedule that shows the taxes paid by the applicant, other than income taxes in separate columns, as follows:

(a) Tax expense per books for the period of testing;

(b) Any adjustments to the amounts booked; and

2. The taxes must be shown by states and by kind of taxes.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 47, eff. 10-14-82]

NAC 703.2441 Statement N. (NRS 703.025, 704.210) Statement N must contain a statement that shows the allocation of both rate base components and components of the results of operations between or among departments, jurisdictions or regulated and nonregulated operations. The statement must show the total balance of each item to be allocated and the portion allocated to each department, jurisdiction or other category. The statement or appropriate supporting schedules must provide sufficient information as to methods, procedures, data and derivation of percentages and ratios to permit the Commission to review the applicant’s procedures and to independently allocate any adjustments to the applicant’s statements or schedules using the same method employed by the applicant.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 48, eff. 10-14-82]

NAC 703.2443 Schedule N-1. (NRS 703.025, 704.210) If an officer or employee of a utility provides services related to operations which are not regulated by the Commission, the utility shall submit a schedule showing the expenses related to that officer or employee allocated between regulated and nonregulated operations.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.2445 Statement O. (NRS 703.025, 704.210) Statement O must contain a narrative statement used in support of the design of a proposed rate. The statement must describe and justify the objectives of the design of the proposed rate. If the purpose of the design is to reflect costs, the narrative must state how that objective is achieved, and must be accompanied by a summary analyzing cost that would justify the design. If the design is not intended to reflect costs (whether fully distributed, incremental or other), a statement must be furnished justifying the departure from rates based on cost.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 49, eff. 10-14-82]

NAC 703.2451 Statement P. (NRS 703.025, 704.210) Statement P must be used to disclose:

1. Any change in presentation for rate making and any change in accounting methods, procedures and allocations adopted since the year of testing presented in the last general rate case. If the change will increase or decrease the applicant’s current requirements for revenue by more than $25,000 or one-hundredth of 1 percent of the overall rate of return for the period of testing, whichever is smaller, the disclosure must include a description of the new method and the old method and a calculation illustrating any effect of the change upon the applicant’s weighted cost of capital, rate base or summary of earnings.

2. Any categories of expense or rate base which have been considered and disallowed by the Commission in a previous case and a full explanation of the new facts and policy considerations offered for each item proposed.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 50, eff. 10-14-82]—(NAC A 1-6-84)

NAC 703.2452 Statement Q. (NRS 703.025, 704.210) Statement Q must contain a statement of the number and type of shares held by shareholders at the end of the test year and any changes in ownership which occurred during the test year, including that information required in subsection 9 of NAC 703.175.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.2455 Filing requirements for utilities with annual gross operating revenues of less than $250,000. (NRS 703.025, 704.210) An applicant with annual gross operating revenues of less than $250,000 shall submit statements A through P. Supporting schedules may be submitted in addition to the required statements.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 51, eff. 10-14-82]

NAC 703.2461 Certified adjustments. (NRS 703.025, 704.210)

1. Estimated and subsequently experienced adjustments may be certified up to 6 months beyond the period of testing pursuant to subsection 3 of NRS 704.110. Adjustments must be known and measurable with reasonable accuracy at the time of filing the original application. No new rates, fares or charges may be placed into effect until the changes have been experienced and certified by the applicant to the Commission.

2. Adjustments that may be certified and reported in an application for a rate increase in statement I include, but are not limited to, the following items:

(a) The costs of new securities as defined in NRS 704.322, and the associated expense for interest as an adjustment to the calculation of federal income tax;

(b) Adjustments in the rate base that reflect increased investments in facilities used and useful in operations of the utility and the deduction of the appropriate amounts from construction work in progress as a factor in allocating interest costs between departments;

(d) Expenses which are:

(1) Costs for fuel;

(2) Costs for labor, pensions, benefits and taxes, when such taxes are a direct result of a change in the rate per unit of costs for labor;

(3) Costs for research and development;

(4) Property taxes;

(5) Depreciation;

(6) Insurance; and

(7) Rent.

3. Each adjustment must also include a calculation of the appropriate federal income tax.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 52, eff. 10-14-82]—(NAC A 1-6-84)

NAC 703.2481 Notice to public and customers. (NRS 703.025, 704.210)

1. When a public utility files an application to adjust any rate or charge for the service or commodities furnished by it to increase its return on investment, to increase its rate base or to cover expenses not related to fuel or purchased power, the public utility shall:

(a) Within 10 days after filing the application, make available at each of its business offices a complete copy of the application in such form and place as to be readily accessible and conveniently inspected by the public;

(b) Within 10 days after filing the application, print in plain type and post at each of its business offices, in such form and place as to be readily accessible to and conveniently inspected by the public, a notice stating that the application has been filed with the Commission, describing briefly the purpose of the application, indicating that the complete application is available for public inspection on the premises and listing the locations at which additional information may be obtained; and

(c) Within 20 days after filing the application, submit to the Commission affidavits of that filing and the posting required in paragraphs (a) and (b) of this subsection.

2. When a public utility files an application to adjust any rate or charge for the service or commodities furnished by it to increase its return on investment, to increase its rate base or to cover expenses not related to fuel or purchased power and the Commission has set a date and location for a hearing on the application, the applicant shall provide notice to its customers who are affected by the proposed increase. The first paragraph of the notice must state the date, time and place of the hearing, the total amount of the proposed increase in dollars, the estimated proposed monthly increase in dollars and the proposed percentage of increase for each class of customer or class of service. The notice must also state that the Commission may set rates which may be higher or lower than the rates proposed in the application and that additional information may be obtained from the Commission or at the offices of the public utility filing the application. The notice must be given at least 10 days before the hearing, by two of the three following methods:

(a) Inclusion in the regular bill of charges transmitted to the applicant’s customers.

(b) Separate mailing to each of the applicant’s customers.

(c) Prominent presentation in one or more forms of the media, such as newspapers, television or radio, so that the notice will reach the applicant’s customers.

3. At or before the hearing, the applicant must submit a verified statement to the Commission that the notice required in subsection 2 has been given. The statement must:

(a) List the means by which, and the dates and times when, the notice was mailed, published or broadcast; and

(b) Include, as an attachment, a copy of the notice as mailed, published or transcribed.

[Pub. Service Comm’n, Gen. Order 3 Rule 16 § 56, eff. 10-14-82]—(NAC A 1-6-84; 3-19-87; A by Pub. Utilities Comm’n by R116-03, 10-30-2003)

Changes in Rates of Telecommunication Providers: General Provisions

NAC 703.2501 Definitions. (NRS 703.025, 704.210) As used in NAC 703.2501 to 703.27146, inclusive, unless the context otherwise requires, the words and terms defined in NAC 703.2502 to 703.25036, inclusive, have the meanings ascribed to them in those sections.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 2, eff. 10-14-82]—(NAC A 7-7-94; 10-25-95)

NAC 703.2502 “Access line” defined. (NRS 703.025, 704.210) “Access line” means any connection between a customer and a carrier that provides the customer with access to telecommunication in Nevada.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.25022 “Completed application” defined. (NRS 703.025, 704.210) “Completed application” means an application which has been submitted to the Commission for review, which includes all required fees and all the information requested in the forms furnished by the Commission and which has been accepted by the Commission as complete.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

NAC 703.25026 “Provider of last resort” defined. (NRS 703.025, 704.210) “Provider of last resort” has the meaning ascribed to it in NRS 704.018.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.2503 “Test year” defined. (NRS 703.025, 704.210) “Test year” means the 12-month period ending not later than 6 months before the filing of the application pursuant to NAC 703.27116 to 703.27146, inclusive.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

NAC 703.25032 “Uniform System of Accounts” defined. (NRS 703.025, 704.210) “Uniform System of Accounts” means the Uniform System of Accounts adopted by reference in NAC 704.645.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

NAC 703.25034 “Unit” defined. (NRS 703.025, 704.210) “Unit” means the quantitative measurement of an item, or level of use, consumption or effort.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

NAC 703.25036 “Unit rate” defined. (NRS 703.025, 704.210) “Unit rate” means a rate which when multiplied by the number of units within a given period results in the aggregate dollar amount applicable to that period.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

NAC 703.2504 Applicability. (NRS 703.025, 704.210, 704.68865) The provisions of NAC 703.2501 to 703.2509, inclusive, apply to:

1. A general rate case application filed by a small-scale provider of last resort, except as otherwise provided in NAC 703.2501 to 703.2509, inclusive; and

2. A general rate case application pursuant to subparagraph (2) of paragraph (b) of subsection 2 of NRS 704.68877 filed by a competitive supplier before January 1, 2012, to increase the rates or pricing of basic network services as set forth in the tariffs of the competitive supplier that were in effect on January 1, 2007.

(Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

NAC 703.2507 Notice of intent to file application for adjustment in rates. (NRS 703.025, 704.210)

1. If a public utility that provides telecommunication services proposes to increase its annual gross revenue by at least 10 percent or by more than $50,000, it must provide written notice of its intent to file an application for adjustments in rates to:

(a) The Secretary of the Commission;

(b) The staff of the Commission assigned to regulatory operations; and

3. The written notice must contain a list of the components on which the public utility expects to base its application for adjustments in rates, including:

(a) Cost of capital;

(b) Depreciation;

(d) Design of the proposed rates; and

(e) Any other material issues known at the time the notice is filed.

(Added to NAC by Pub. Service Comm’n, eff. 7-7-94)

NAC 703.2508 Submission of master document for request of data. (NRS 703.025, 704.210)

1. Except as otherwise provided in subsection 6, if a public utility that provides telecommunication services proposes to increase its annual gross revenue by at least 10 percent or by more than $50,000, it must submit a master document for the request of data, together with answers to the questions contained in the document, to:

(a) The Consumer’s Advocate; and

(b) The staff of the Commission assigned to regulatory operations.

2. The public utility must:

(a) Submit the master document for the request of data, together with the answers, on the same date as it files the application for adjustments in rates.

(b) Complete as much of the answers to the questions in the master document as possible given the available data and any agreements for the confidentiality of information which have been executed.

4. The following entities may request the Commission to change the illustrative format for the master document for the request of data:

(a) The Consumer’s Advocate;

(b) The staff of the Commission; or

(c) The public utility which proposes to increase its annual gross revenue by at least 10 percent or by more than $50,000.

5. Any changes which the Commission makes to the illustrative format for the master document for the request of data do not apply to a master document for the request of data submitted by a public utility that provides telecommunication services within 90 days after the Commission approves the changes.

6. A small-scale provider of last resort that is not regulated as a competitive supplier which submits an application for a change of rate in accordance with NAC 703.27116 to 703.27146, inclusive, does not have to submit a master document as required by this section.

(Added to NAC by Pub. Service Comm’n, eff. 7-7-94; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.2509 Meeting with Consumer’s Advocate and staff of Commission before filing application. (NRS 703.025, 704.210)

1. If a public utility that provides telecommunication services proposes to increase its annual gross revenue by at least 10 percent or by more than $50,000, it must meet with the Consumer’s Advocate and the staff of the Commission assigned to regulatory operations at least 20 days before the anticipated date for filing the application for adjustments in rates.

2. At the meeting, the public utility shall provide updated information regarding the application for adjustments in rates, including:

(a) Cost of capital;

(b) Depreciation;

(d) Design of the proposed rates; and

(e) Any other material issues known at the time of the meeting.

3. At the meeting, those persons in attendance shall:

(a) Develop guidelines for a preliminary plan for conducting audits. The guidelines must address all matters relating to the audits, including:

(2) The number of persons representing each interest who will participate in the audit.

(3) The facilities and the supplies that the auditors will need at the locations of the audits.

(b) Discuss a plan and schedule for discovery, and methods of minimizing the duplication of discovery requests.

(d) Discuss the review of computer models for data contained in the application.

(e) Determine which items on the master document for the request of data must be provided on a computer disc or other computer media, and which items must be provided on paper.

(f) Discuss the need for and timing of future meetings, including:

(1) A conference between the public utility, the staff of the Commission and a representative of the Bureau of Consumer Protection to discuss the results of the audits.

(Added to NAC by Pub. Service Comm’n, eff. 7-7-94)

Changes in Rates of Telecommunication Providers: Competitive Suppliers That Are Incumbent Local Exchange Carriers

NAC 703.251 Applicability. (NRS 703.025, 704.210, 704.68865) NAC 703.2501 to 703.2711, inclusive, apply to a competitive supplier that is an incumbent local exchange carrier unless the competitive supplier is otherwise exempt by law.

[Pub. Service Comm’n, Gen. Order 3 Rules 16-A § 1, eff. 10-14-82]—(NAC A 1-6-84; 3-19-87; 10-25-95; A by Pub. Utilities Comm’n by R211-03, 4-5-2004; R136-07, 1-30-2008)

NAC 703.2511 Information required in application. (NRS 703.025, 704.210, 704.68865) An application for adjustments in rates or charges submitted by a competitive supplier that is an incumbent local exchange carrier must include:

1. An exhibit summarizing the presently existing rates and the proposed rates, a brief description of each change in rates requested and a reference to the associated page of the tariff.

2. An exhibit containing all proposed changes or additions to the tariff. If the proposal changes existing language in the tariff, the exhibit must also contain the existing language in the tariff.

3. A complete and accurate explanation of the circumstances and conditions relied upon as justification for the application.

4. An exhibit referencing any prior proceeding before the Commission which has been held since the applicant’s last general rate case and which is related to any of the proposals contained in the application.

5. A brief description of the:

(a) Applicant’s reasons for the application or filing of a tariff;

(b) Estimated effect that approval of the application or tariff by the Commission will have on the applicant’s annual revenues; and

(c) Estimated effect, for each service offered, of approval of the application or tariff by the Commission on rates and charges paid by the applicant’s customers.

6. A proposed notice of hearing which conforms to the requirements of paragraphs (b), (c) and (d) of subsection 2 of NRS 233B.121.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 3, eff. 10-14-82]—(NAC A 3-19-87; 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.2515 Information to be filed with application. (NRS 703.025, 704.210) The applicable statements and schedules prescribed under NAC 703.2561 to 703.2688, inclusive, must accompany the application when it is filed with the Commission. An index of these statements and schedules must also be included which indicates the statements and schedules that are supported by workpapers prepared by the applicant.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 4, eff. 10-14-82]—(NAC A 1-6-84; 3-19-87)

NAC 703.2521 Additional information. (NRS 703.025, 704.210) The list contained in NAC 703.2561 to 703.2688, inclusive, is not exclusive. Any additional information necessary to determine the fairness and reasonableness of the proposed change must be supplied upon request of the Commission in a particular case.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 4a, eff. 10-14-82]

NAC 703.2525 Illustrative format. (NRS 703.025, 704.210) Copies of illustrative statements and schedules will be available at the Commission’s offices during business hours for use by prospective applicants.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 5, eff. 10-14-82]

NAC 703.2531 Scope of presentation and preparation for hearing. (NRS 703.025, 704.210) An applicant must be prepared to go forward at a hearing on the data which have been submitted and to sustain the burden of proof of establishing that its proposed changes are just and reasonable and not unduly discriminatory or preferential. To avoid delay by the Commission in its consideration of the proposed changes, the applicant must ensure that the material it relied upon is of such composition, scope and format that it would serve as its complete case if the rate is suspended and the matter is set for hearing.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 6, eff. 10-14-82]

NAC 703.2535 Format of statements and schedules. (NRS 703.025, 704.210) Statements and schedules must generally follow the illustrative examples mentioned in NAC 703.2525. Each item must be labeled, mathematically correct, properly cross-referenced and it must indicate the date or period covered by the statement or schedule.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 7, eff. 10-14-82]

NAC 703.2541 Nonapplicable statements and schedules. (NRS 703.025, 704.210) All statements and schedules required to be submitted to the Commission pursuant to NAC 703.2561 to 703.2688, inclusive, must be in alphabetical sequence. If the applicant omits any required statement or schedule in the belief that it is not applicable, a written explanation for the omission must be submitted in lieu of the required statement or schedule.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 8, eff. 10-14-82]—(NAC A 10-25-95)

NAC 703.2545 Recorded data and adjustments. (NRS 703.025, 704.210)

2. An adjustment to recorded data must be supported by workpapers detailing the calculations, units, unit rates and any other accounting or financial data necessary to completely explain and justify the proposed adjustments.

3. The applicant must calculate the adjustments to show the annual effect of the change in units or in the unit rate, or both, upon applicant’s weighted cost of capital, rate base or summary of earnings.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 9, eff. 10-14-82]

NAC 703.2551 Reliance on other data. (NRS 703.025, 704.210) If the applicant has relied on data other than that presented in the statements and schedules prescribed by NAC 703.2501 to 703.2711, inclusive, such other data must be submitted in addition to the prescribed statements and schedules.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 10, eff. 10-14-82]

NAC 703.2555 Supporting data. (NRS 703.025, 704.210)

1. The data in support of the proposed increase in rates must include the required recorded data, adjustments and other computations and information on which the applicant relies to justify the proposed rates.

2. Any data or summaries included in the application which reflect the book of accounts must be supported by accounting workpapers. The workpapers must contain all necessary particulars from which an auditor may readily identify the book data included in the filing in separate columns and a verification that such data are in agreement with the applicant’s book of accounts. All statements, schedules and workpapers must be prepared in accordance with the classifications provided in the uniform system of accounts. Workpapers in support of all adjustments, computations and other information included in the application must be cross-referenced, contain all relevant details and be available for inspection.

3. Each applicant must prepare and maintain workpapers sufficient to support the application. Failure to produce promptly such workpapers on request of authorized representatives of the Commission or the Consumer’s Advocate is a cause for dismissal by the Commission of the application in its entirety. In addition to the workpapers, the following material, normally prepared by the applicant, must be made available for verification and analysis by the Commission’s staff and the Consumer’s Advocate. Upon request, a copy must be furnished. If required for the analysis, the Commission will request:

(a) Copies of monthly financial reports prepared for managerial purposes.

(b) Copies of the accounting analyses of balance sheet accounts.

(c) Complete trial balances of all the balance sheet accounts at the beginning and end of the 12 months of actual experience, and revenue and expense accounts for 12 months of recorded data used for the application.

(d) Analyses of the miscellaneous revenues and related expenses included in the submitted results of operations.

(e) Analyses of accounts showing retained earnings or capital surplus.

(f) Copies of all relevant reports and correspondence with other regulatory agencies.

(g) Copies of all relevant reports, returns and correspondence with federal, state and local authorities on taxes.

(h) If not confidential, copies of all managerial studies, reports and letters prepared by employees of the company and outside auditors.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 11, eff. 10-14-82]—(NAC A 1-6-84)

NAC 703.2561 Filing requirements. (NRS 703.025, 704.210, 704.68865) In filing its application, a competitive supplier that is an incumbent local exchange carrier must include statements A to J, inclusive, K, with its related schedules, L, M, with its related schedules, and N, O and P, as these statements and schedules are described in NAC 703.2565 to 703.2687, inclusive.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 12, eff. 10-14-82]—(NAC A 3-19-87; 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.2565 Statement A. (NRS 703.025, 704.210) Statement A must consist of a statement of financial position based on the total company, in the order of accounts prescribed by the uniform system of accounts, as of the beginning and end of the period for testing.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 13, eff. 10-14-82]

NAC 703.2571 Statement B. (NRS 703.025, 704.210) Statement B must consist of an income statement based on the total company, in the order of accounts prescribed by the uniform system of accounts for the period of testing.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 14, eff. 10-14-82]

NAC 703.2575 Statement C. (NRS 703.025, 704.210) Statement C must consist of a statement that shows the balance at the beginning of the period of testing with debits and credits to retained earnings during such a period according to descriptive captions and the resultant balance at the end of the period of testing.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 15, eff. 10-14-82]

NAC 703.2581 Statement D. (NRS 703.025, 704.210) Statement D must consist of a statement satisfying the letter and spirit of the Statement of Financial Accounting Standards No. 95 issued by the Financial Accounting Standards Board and adopted by reference in NAC 703.2285.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 16, eff. 10-14-82]—(NAC A 12-2-91)

NAC 703.2585 Statement E. (NRS 703.025, 704.210) Statement E must contain any report, opinion or footnote applicable to any portion of the period included in statements A, B, C and D or related footnotes which were made by any accountant or auditor.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 17, eff. 10-14-82]

NAC 703.2591 Statement F. (NRS 703.025, 704.210) Statement F must contain a statement that shows the dollar amount of each component of the capital structure, its related cost percentage and the proportion of each component of the capital structure to the total capital structure. This statement must also show the percentage of the overall rate of return requested and the general reasons therefor.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 18, eff. 10-14-82]

NAC 703.2595 Statement G. (NRS 703.025, 704.210) Statement G is a summary of the overall rate base of the utility by primary plant account.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 19, eff. 10-14-82]

NAC 703.2601 Statement H. (NRS 703.025, 704.210) Statement H is a summary of the overall results of operations developed from the supporting schedules and statements. The statements must show the amounts as recorded on the applicant’s books, adjustments during the year of testing for known changes and estimated adjustments to be certified by the applicant. The statement must also include the requested rate of return and must show the application of the requested rate of return to the overall rate base.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 20, eff. 10-14-82]

NAC 703.2605 Statement I. (NRS 703.025, 704.210) If statement H contains adjustments for estimated changes beyond the actual year of testing, certification of these amounts must be submitted in statement I in accordance with subsection 3 of NRS 704.110. The certified amounts must be shown in statement I in the same format as statement H. Statement I must begin with the results of operations as recorded and as adjusted for known changes during the year of testing from statement H. Each certified adjustment must then be shown. The necessary detail used to support each certified adjustment must be submitted with the statement.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 21, eff. 10-14-82]

NAC 703.2611 Statement J. (NRS 703.025, 704.210)

1. Statement J must contain a statement that shows operating revenues for a utility classified in accordance with the accounts for operating revenue prescribed by the uniform system of accounts. Sales and service must be classified as between departments, jurisdictional and nonjurisdictional, as applicable.

2. Jurisdictional operating revenues must be adjusted to show the annual effect of changes occurring during the period of testing.

3. If statement H contains adjustments for estimated changes in expenses beyond the actual recorded year of testing, the applicant must adjust jurisdictional operating revenues to show the annual effect of changes occurring during the period for certification in its statement I.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 22, eff. 10-14-82]

NAC 703.2615 Statement K. (NRS 703.025, 704.210) Statement K must contain:

(a) Expenses for operation and maintenance as booked for the period of testing;

(b) Any adjustment to expenses booked; and

2. A detailed explanation of any adjustment and the manner of their determination must be supplied.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 23, eff. 10-14-82]

NAC 703.2621 Schedule K-1. (NRS 703.025, 704.210) Schedule K-1 is a schedule that shows the segregation of expenses for operations and maintenance, and their functional groupings into a component for labor and a component embracing the remainder of the expenses. This segregation into components must be applicable to the recorded account balances for the year of testing and to any adjustments thereto.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 24, eff. 10-14-82]

NAC 703.2625 Schedule K-2. (NRS 703.025, 704.210) Schedule K-2 must contain an analysis of each account in schedule format for the year of testing disclosing:

1. The classification of principal charges and credits for advertising costs;

2. Particulars of supporting computations and accounting bases;

3. A description of service and related amounts for which liability is incurred or accrued; and

4. The name of the firm or person rendering the services.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 25, eff. 10-14-82]

NAC 703.2631 Schedule K-3. (NRS 703.025, 704.210) Schedule K-3 must include an analysis of each account in schedule format for the year of testing disclosing:

1. The classification of principal charges and credits for outside services which were employed;

2. Particulars of supporting computations and accounting bases;

3. A description of service and related amounts for which liability is incurred or accrued; and

4. The name of the firm or person rendering the services.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 26, eff. 10-14-82]

NAC 703.2635 Schedule K-4. (NRS 703.025, 704.210) Schedule K-4 must include an analysis of each account in schedule format for the year of testing disclosing:

1. The classification of principal charges and credits for pensions and benefits for employees;

2. Particulars of supporting computations and accounting bases;

3. A description of service and related amounts for which liability is incurred or accrued; and

4. The name of the firm or person rendering the services.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 27, eff. 10-14-82]

NAC 703.2641 Schedule K-5. (NRS 703.025, 704.210) Schedule K-5 must include an analysis of each account in schedule format for the year of testing disclosing:

1. The classification of principal charges and credits for expenses caused by regulations of the Commission;

2. Particulars of supporting computations and accounting bases;

3. A description of service and related amounts for which liability is incurred or accrued; and

4. The name of the firm or person rendering the services.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 28, eff. 10-14-82]

NAC 703.2645 Schedule K-6. (NRS 703.025, 704.210) Schedule K-6 must include an analysis of each account in schedule format for the year of testing disclosing:

1. The classification of principal charges and credits for miscellaneous general expenses;

2. Particulars of supporting computations and accounting bases;

3. A description of service and related amount in dollars for which liability is incurred or accrued; and

4. The name of the firm or person rendering the services.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 29, eff. 10-14-82]

NAC 703.2651 Schedule K-7. (NRS 703.025, 704.210) If the expense accounts contain charges or credits from associated companies or nonutility departments of the applicant, the applicant must submit schedule K-7 for each such associated company or nonutility department showing:

1. The amount of the charges or credits during each month and in total for the year of testing.

2. The account classification or classification charged or credited.

3. A description of the specific services performed for, or by, the associated company or nonutility department.

4. The bases used in determining the amounts of the charges or credits.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 30, eff. 10-14-82]

NAC 703.2655 Statement L. (NRS 703.025, 704.210)

(a) Expenses for the period of testing;

(b) Any adjustment to such expense; and

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 31, eff. 10-14-82]

NAC 703.2661 Statement M. (NRS 703.025, 704.210) Statement M must contain a statement that shows the computation of allowances for federal income taxes for the period of testing. To indicate the accounting classification applicable to the amount claimed, the computation of the allowance for federal income tax must show separately the amounts designated as current tax and deferred tax.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 32, eff. 10-14-82]

NAC 703.2665 Schedule M-1. (NRS 703.025, 704.210) Schedule M-1 must contain a schedule that shows monthly book balances of accumulated deferred income taxes for each of the 12 months during the period of testing.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 33, eff. 10-14-82]

NAC 703.2671 Schedule M-2. (NRS 703.025, 704.210)

1. Schedule M-2 must contain a schedule that shows the taxes paid by the applicant, other than income taxes in separate columns, as follows:

(a) A tax expense per books for the period of testing;

(b) Any adjustments to the amounts booked; and

2. The taxes must be shown by states and by kind of taxes.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 34, eff. 10-14-82]

NAC 703.2675 Schedule M-3. (NRS 703.025, 704.210) Schedule M-3 must contain a schedule which reconciles the amount of book net income with taxable net income as reported to the United States Internal Revenue Service for the most recent year for which a tax return was filed.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 35, eff. 10-14-82]

NAC 703.2681 Statement N. (NRS 703.025, 704.210) Statement N must contain a statement that shows the allocation of both rate base components and components of the results of operations between or among departments, jurisdictions or regulated and nonregulated operations. The statement must show the total balance of each item to be allocated and the portion allocated to each department, jurisdiction or other category. The statement or appropriate supporting schedules must provide sufficient information as to methods, procedures, data and derivation of percentages and ratios to permit the Commission to review the applicant’s procedures and to independently allocate any adjustments to the applicant’s statements or schedules using the same method employed by applicant.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 36, eff. 10-14-82]

NAC 703.2685 Statement O. (NRS 703.025, 704.210) Statement O must contain a narrative statement used in support of the design of a proposed rate. The statement must describe and justify the objectives of the design of the proposed rate. If the purpose of the design is to reflect costs, the narrative must state how that objective is achieved and must be accompanied by a summary analyzing cost that would justify the design. If the design is not intended to reflect costs (whether fully distributed, incremental or other), a statement must be furnished justifying the departure from rates based on cost.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 37, eff. 10-14-82]

NAC 703.2687 Statement P. (NRS 703.025, 704.210) Statement P must be used to disclose:

1. Any change in presentation for rate-making purposes and any change in accounting methods, procedures and allocations adopted during the 3 years immediately preceding the filing date of the application in question or in the period since the year of testing presented in the prior case for general rates, whichever is shorter. If the change will increase or decrease the applicant’s current requirements for revenue by more than $25,000 or one-hundredth of 1 percent of the overall rate of return for the period of testing, whichever is smaller, the disclosure must include a description of the new method, the old method and a calculation illustrating any effect of the change upon the applicant’s weighted cost of capital, rate base or summary of earnings.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 38, eff. 10-14-82]—(NAC A 1-6-84)

NAC 703.2688 Statement Q. (NRS 703.025, 704.210) Statement Q must contain a statement of the number and type of shares held by shareholders at the end of the test year and any changes in ownership which occurred during the test year, including that information required in subsection 9 of NAC 703.175.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.2691 Certified adjustments. (NRS 703.025, 704.210, 704.68865)

1. The applicant may certify in statement I to the following estimated and subsequently experienced adjustments for up to 6 months beyond the recorded test period, as provided in subsection 3 of NRS 704.110. Adjustments that may be certified and reported in an application for a rate increase in statement I include, but are not limited to, the following items:

(a) The costs of new securities as defined in NRS 704.322 and the associated interest expense as an adjustment to federal income tax calculation;

(b) Adjustments in the rate base that reflect increased investments in facilities used and useful in operations of the competitive supplier that is an incumbent local exchange carrier and the deduction of the appropriate amounts from construction work in progress as a factor in allocating interest costs between departments;

(d) Expenses which are:

(1) Fuel costs;

(2) Labor costs, pensions, benefits and taxes, when the taxes are a direct result of a change in the rate per unit of labor costs;

(3) Costs for research and development;

(4) Property taxes;

(5) Depreciation;

(6) Insurance; and

(7) Rent.

2. Each adjustment must also include a calculation of the appropriate federal income tax.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 40, eff. 10-14-82]—(NAC A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.2711 Notice to public and customers. (NRS 703.025, 704.210, 704.68865)

1. When a competitive supplier that is an incumbent local exchange carrier files a general rate application pursuant to subparagraph 2 of paragraph (b) of subsection 2 of NRS 704.68877, the competitive supplier shall:

(c) Within 20 days after filing the application, submit to the Commission affidavits of that filing and the posting required in paragraphs (a) and (b).

2. When a competitive supplier that is an incumbent local exchange carrier files a general rate application pursuant to subparagraph 2 of paragraph (b) of subsection 2 of NRS 704.68877 to adjust any rate or charge for the service or commodities furnished by the competitive supplier to increase its return on investment, to increase its rate base or to cover expenses and the Commission has set a date for a hearing on the application, the applicant shall provide notice to its customers who are affected by the proposed increase. The first paragraph of the notice must state the date, time and place of the hearing, the total amount of the proposed increase in dollars, the estimated proposed monthly increase in dollars and the proposed percentage of increase for basic network service. The notice must also state that the Commission may set rates which may be higher or lower than the rates proposed in the application and that additional information may be obtained from the Commission or at the offices of the competitive supplier filing the application. The notice must be given at least 10 days before the hearing, by two of the three following methods:

(a) Inclusion in the regular bill of charges transmitted to the applicant’s customers.

(b) Separate mailing to each of the applicant’s customers.

(c) Prominent presentation in one or more forms of the media, such as newspapers, television or radio, so that the notice will likely reach the applicant’s customers.

3. At or before the hearing, the applicant must submit a verified statement to the Commission that the notice required in subsection 2 has been given. The statement must:

(a) List the means by which, and the dates and times when, the notice was mailed, published or broadcast; and

(b) Include, as an attachment, a copy of the notice as mailed, published or transcribed.

[Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 44, eff. 10-14-82]—(NAC A 1-6-84; 3-19-87; 10-25-95; A by Pub. Utilities Comm’n by R116-03, 10-30-2003; R136-07, 1-30-2008)

Changes in Rates of Telecommunication Providers: Small-Scale Providers of Last Resort

NAC 703.27116 Applicability. (NRS 703.025, 704.210) The provisions of NAC 703.2501 to 703.2509, inclusive, and 703.27116 to 703.27146, inclusive, apply to small-scale providers of last resort.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R211-03, 4-5-2004; R136-07, 1-30-2008)

NAC 703.27118 Information required in application for adjustments in rates. (NRS 703.025, 704.210) An application for adjustments in rates by a small-scale provider of last resort must include:

1. An exhibit summarizing the presently existing rates and the proposed rates, a brief description of each change in rates requested and a reference to the associated page of the tariff.

2. An exhibit containing all proposed changes or additions to the tariff. If the proposal changes existing language in the tariff, the exhibit must also contain the existing language in the tariff.

3. A complete and accurate explanation of the circumstances and conditions relied upon as justification for the application.

5. A brief description of the:

(a) Applicant’s reasons for the application or filing of a tariff;

(b) Estimated effect that approval of the application or tariff by the Commission will have on the applicant’s annual revenue; and

(c) Estimated effect, for each service offered, of approval of the application or tariff by the Commission on rates and charges paid by the applicant’s customers.

6. A proposed notice of hearing which conforms to the requirements of paragraphs (b), (c) and (d) of subsection 2 of NRS 233B.121.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.2712 Scope of presentation and preparation for hearing. (NRS 703.025, 704.210) An applicant must be prepared to go forward at a hearing on the data which has been submitted and to sustain the burden of proof of establishing that its proposed changes are just and reasonable and not unduly discriminatory or preferential. To avoid delay by the Commission in its consideration of the proposed changes, the applicant shall ensure that the material upon which it relied is of such composition, scope and format that it would serve as its complete case if the rate is suspended and the matter is set for hearing.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

NAC 703.27122 Recorded data and adjustments. (NRS 703.025, 704.210)

1. Amounts which purport to represent recorded data and are included in a form, statement or schedule must be reported in a separate column or columns. Adjustments to recorded data must also be reported in a separate column or columns so that the recorded data and adjustment thereto and adjusted amounts are clearly disclosed.

2. An adjustment to recorded data must be supported by workpapers detailing the calculations, units, unit rates and any other accounting or financial data necessary to explain and justify completely the proposed adjustments.

3. The applicant shall calculate the adjustments to show the annual effect of the change in units or in the unit rate, or both, upon the applicant’s weighted cost of capital, rate base or summary of earnings.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

NAC 703.27124 Reliance on other data. (NRS 703.025, 704.210) If the applicant has relied on data other than that presented in the forms, statements and schedules prescribed by NAC 703.27116 to 703.27146, inclusive, that data must be submitted in addition to the prescribed forms, statements and schedules.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

NAC 703.27126 Supporting data. (NRS 703.025, 704.210)

2. Any data or summaries included in the application which reflect the book of accounts must be supported by accounting workpapers. The workpapers must contain all necessary particulars from which an auditor may readily identify the book data included in the filing in separate columns and a verification that the data is in agreement with the applicant’s book of accounts. All forms, statements, schedules and workpapers must be prepared in accordance with the classifications provided in the Uniform System of Accounts. Workpapers in support of all adjustments, computations and other information included in the application must be cross-referenced, contain all relevant details and be available for inspection.

3. Each applicant shall prepare and maintain workpapers sufficient to support the application. Failure to produce promptly such workpapers on the request of an authorized representative of the Commission or the Consumer’s Advocate is a cause for dismissal by the Commission of the application in its entirety. In addition to the workpapers, the following material, normally prepared by the applicant, must be made available for verification and analysis by the Commission’s staff and the Consumer’s Advocate. Upon request, a copy must be furnished. If required for the analysis, the Commission will request:

(a) Copies of monthly financial reports prepared for managerial purposes.

(b) Copies of the accounting analyses of balance sheet accounts.

(d) Analyses of the miscellaneous revenues and related expenses included in the submitted results of operations.

(e) Analyses of accounts showing retained earnings or capital surplus.

(f) Copies of all relevant reports and correspondence with other regulatory agencies.

(g) Copies of all relevant reports, returns and correspondence with federal, state and local authorities on taxes.

(h) If not confidential, copies of all managerial studies, reports and letters prepared by employees of the provider and outside auditors.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

NAC 703.27128 Application for change in rates which results in general change in annual revenues. (NRS 703.025, 704.210)

1. Whenever a small-scale provider of last resort files a request which will result in a general change in its annual revenues as a consequence of adjusting rates for existing service, the small-scale provider of last resort must submit a completed application, setting forth its proposed changes and the reasons for the changes. The application must contain recorded results of revenues, expenses, investments, costs of capital for the test year and normalization and annualization adjustments as necessary to reasonably and appropriately reflect the results of its operations.

2. The Commission will give public notice of the application in accordance with its regulations and procedures. The Commission will not consider a request for a rate increase as filed until the application is complete and ready for the staff’s analysis.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R107-07, 12-4-2007; R136-07, 1-30-2008)

NAC 703.2713 Service of application for change in rates; compliance with provisions regarding notice. (NRS 703.025, 704.210) A small-scale provider of last resort shall serve a copy of the application on the governing body of each county, municipality and general improvement district whose residents would be affected by the proposed changes in rates. The applicant must also comply with the notice provisions set forth in NAC 703.27146.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.27132 Information required in application for change in rates. (NRS 703.025, 704.210)

1. An application by a small-scale provider of last resort for a change in rates must include the following:

(a) The general information specified in NAC 703.27118.

(b) Information required to complete the following forms, which are available from the Commission:

(1) Form A, which provides general information about the company.

(2) Form B, which is a statement of financial position based on the total company, in the order of accounts prescribed by the Uniform System of Accounts, as of the beginning and ending of the test year.

(3) Form C, which is an income statement based on the total company, in the order of accounts prescribed by the Uniform System of Accounts, for the test year.

(4) Form D, which is a statement that shows the balance at the beginning of the test year with debits and credits to retained earnings during that year according to descriptive captions and the resultant balance at the end of the test year.

(5) Form E, which is a summary of the overall rate base of the company by primary plant account for the test year. The rate base must be separated to reflect the total company and Nevada jurisdictional accounts.

(6) Form F, which must contain a statement that shows the dollar amount of each component of the capital structure, its related cost percentage and the proportion of each component of the capital structure to the total capital structure. This form must also show the percentage of the overall rate of return requested.

(7) Form G, which is a summary of overall results of operations developed from the supporting schedules and statements. The results of operations must be separated by jurisdiction. Form G must show the amounts as recorded on the applicant’s books, adjustments during the test year of known changes, adjustments necessary to normalize or annualize the various components of the results of operation and any estimated adjustments to be certified by the applicant. The company shall annualize and normalize revenues, depreciation expenses and labor expenses. The rate base at the end of the period must be utilized to calculate the results of operation. The form must show the applicant’s return on equity and the application of this return on equity and resulting rate of return on the overall rate base. The applicant’s return on equity will be determined in accordance with NAC 703.27138, unless otherwise determined by the Commission.

(8) If Form G or Form I, or both, contain an adjustment for estimated changes beyond the actual test year, certification of these amounts must be submitted in Form H in accordance with subsection 3 of NRS 704.110. The certified amounts must be shown on this form in the same format as those shown in Form G or Form I, as appropriate. Each certified adjustment must be shown separately. The necessary detail used to support each certified adjustment must be submitted with this form.

(9) Form I, which must:

(I) Contain a statement that shows operating revenues of the applicant, separated by jurisdiction, classified in accordance with the accounts for operating revenue prescribed by the Uniform System of Accounts;

(II) Disclose, using such supporting schedules as necessary, monthly revenues and revenue totals for the period of testing; and

(III) Disclose, using such supporting schedules as necessary, the revenue totals for the period of testing from adjusted jurisdictional revenues as computed pursuant to the presently effective and proposed rates together with the difference in the annual revenues.

Ê Jurisdictional operating revenues must be adjusted to show the annual effect of changes occurring during the test year. If the application contains adjustments for estimated changes in expenses beyond the actual recorded test year, the applicant must adjust the jurisdictional operating revenues to show the annual effect of changes occurring during the test year for certification in Form H.

(10) Form J, which must contain a statement that shows the expense for operation and maintenance according to each account of the Uniform System of Accounts. If the expense accounts contain charges or credits in excess of $5,000 from associated companies of the applicant or departments of the applicant which are not utilities, the applicant shall submit the following information for each such associated company or department which:

(I) Shows the amount of the charges or credits during each month and in total for the year of testing;

(II) Shows the classification of the account or the classification charged or credited;

(III) Includes a description of the specific services performed for or by the associated company or department; and

(IV) Shows the bases used in determining the amounts of the charges or credits.

(11) Form K, which must contain a statement that shows separately the plant depreciation and amortization expense by functional classifications. These expenses must be shown in separate columns as follows:

(I) Expenses for the period of testing;

(II) Any adjustment to such an expense; and

(III) The total adjusted expense claimed.

(12) Form L, which provides for customer notice.

2. Until the utility has submitted a completed application, its application will not be considered by the Commission.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.27134 Review of application for change in rates by staff of Commission; report on consumer relations. (NRS 703.025, 704.210)

1. Upon receipt of an application for a change in the rates filed pursuant to NAC 703.27128 to 703.27146, inclusive, the Commission’s Division of Consumer Complaint Resolution will prepare a report on all service complaints received by the Division after the last such request by the small-scale provider of last resort.

2. The staff of the Commission will review the application to determine whether the requested change in rates is reasonable. The staff will conduct the review and forward its report on whether the change in rates is reasonable and the report on consumer relations to the small-scale provider of last resort for its review not later than 60 days after the completed application is filed.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.27136 Hearing on application for change in rates; submission of prepared testimony. (NRS 703.025, 704.210)

1. The Commission will set the matter for a consumer hearing after a completed application has been filed.

2. The record of a public hearing convened solely for the purpose of receiving comments from customers may be reported by the Commission’s sound recording equipment as provided in NRS 703.330 under the direction of the presiding officer. The Commission Secretary shall file and maintain the tapes.

3. If a provider is required to present and justify its proposed changes in rates in a hearing, it shall submit prepared testimony to the Commission and all parties of record not later than 21 days after the Commission has ordered the matter to be set for an evidentiary hearing.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R107-07, 12-4-2007)

NAC 703.27138 Determination of appropriate return on common equity. (NRS 703.025, 704.210)

1. At least once every 3 years, small-scale providers of last resort, the staff of the Commission and the Consumer’s Advocate shall hold discussions to determine whether they can recommend:

(a) A formula to calculate returns on common equity;

(b) A generic return on common equity; or

Ê that would be applicable to the small-scale providers of last resort until the time in which the returns on common equity are next established pursuant to this section. The staff of the Commission is responsible for convening the discussion.

2. If the small-scale providers of last resort, the staff of the Commission and the Consumer’s Advocate are able to agree to a mutually acceptable formula, generic return or returns on equity for individual companies, the staff of the Commission shall submit a petition requesting review and approval of the joint recommendation by the Commission. If the parties cannot agree on a joint recommendation, the staff of the Commission shall file a petition requesting that the Commission adopt a formula, a fixed return on common equity applicable to all small-scale providers of last resort, or a specific return on common equity for individual small-scale providers of last resort. In its petition, the staff shall present the facts necessary to justify its recommendations.

3. Upon receipt of a petition pursuant to subsection 2, the Commission will give public notice of the petition and solicit written comments and may, after a reasonable time for the receipt of written comments, issue an order which accepts, rejects or modifies the recommendation and specifies the formula, return or returns as accepted, rejected or modified, or set the matter for hearing.

4. The Commission will use the formula, return or returns on common equity as determined by the Commission pursuant to this section in evaluating each application for a change in rates filed by a small-scale provider of last resort subject to the provisions of NAC 703.27128 to 703.27146, inclusive, and for requests for money from the fund established pursuant to NRS 704.040, unless a party of record to the proceeding notifies the Commission and the other parties of record, in writing, before the deadline set for petitions for leave to intervene, of its intention to present evidence in support of a different rate of return on common equity.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.2714 Requests to establish or change rates for discretionary or competitive service. (NRS 703.025, 704.210) Whenever a small-scale provider of last resort, who is regulated pursuant to NAC 703.27128 to 703.27146, inclusive, requests to establish or change the rates for a new or existing service which it is requesting to be classified as competitive or discretionary, or which has been previously classified by the Commission as discretionary or competitive, the small-scale provider of last resort may establish or change rates by complying with the requirements for notice, filing and other terms and conditions set forth in NAC 704.6806 to 704.68076, inclusive, 704.7475, 704.7477, 704.7485 and 704.7487, as appropriate. If the rate schedule includes services previously classified by the Commission as discretionary or competitive, the filing must be accompanied by a specific reference to the appropriate Commission records or orders which indicate that the service has been classified as discretionary or competitive. A filing made pursuant to this section is not subject to the requirements set forth in subsection 3 of NAC 703.400.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R010-05, 9-7-2005; R136-07, 1-30-2008)

NAC 703.27142 Deviation from regulations. (NRS 703.025, 704.210) If a small-scale provider of last resort believes that its compliance with NAC 703.27128 to 703.27146, inclusive, would be impracticable or unnecessary because of factors which are unique to its application, the small-scale provider of last resort must apply to the Commission for a variance from those provisions accompanied by justification for the deviation.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.27144 Certified adjustments. (NRS 703.025, 704.210)

1. The applicant may certify in Form I to the following estimated and subsequently experienced adjustments for up to 6 months beyond the recorded test period, as provided in subsection 3 of NRS 704.110. Adjustments that may be certified and reported in an application for any rate increase in Form I include, but are not limited to:

(a) The cost of new securities, as defined in NRS 704.322, and the associated interest expense as an adjustment to the calculation of federal income tax;

(b) Adjustments in the rate base that reflect increased investments in facilities used and useful in the operations of the small-scale provider of last resort and the deduction of the appropriate amounts from construction work in progress as a factor in allocating interest costs between departments;

(d) Expenses, including:

(1) Fuel costs;

(2) Labor costs, pensions, benefits and taxes, if the taxes are a direct result of a change in the rate per unit of labor costs;

(3) Costs for research and development;

(4) Property taxes;

(5) Depreciation;

(6) Insurance; and

(7) Rent.

2. Each adjustment must also include a calculation of the appropriate federal income tax.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.27146 Notice to public and customers. (NRS 703.025, 704.210)

1. When a small-scale provider of last resort files an application to adjust any rate or charge for the service or commodities furnished by it in order to increase its return on investment, to increase its rate base or to cover expenses, the applicant shall:

(c) Within 20 days after filing the application, submit to the Commission affidavits of that filing and the posting required in paragraphs (a) and (b).

2. When a small-scale provider of last resort files an application to adjust any rate or charge for the service or commodities furnished by the small-scale provider of last resort to increase its return on investment, to increase its rate base or to cover expenses, and the Commission has set a date for a hearing on the application, the applicant shall provide notice to its customers who are affected by the proposed increase. The first paragraph of the notice must state the date, time and place of the hearing, the total amount of the proposed increase in dollars, the estimated proposed monthly increase in dollars and the proposed percentage of increase for each class of customer or class of service. The notice must also state that the Commission may set rates which may be higher or lower than the rates proposed in the application and that additional information may be obtained from the Commission or at the offices of the small-scale provider of last resort filing the application. The notice must be given at least 10 days before the hearing, by two of the three following methods:

(a) Inclusion in the regular bill of charges transmitted to the applicant’s customers.

(b) Separate mailing to each of the applicant’s customers.

(c) Prominent presentation in one or more forms of the media, including, but not limited to, newspapers, television or radio, so that the notice will likely reach the applicant’s customers.

3. At or before the hearing, the applicant shall submit a verified statement to the Commission that the notice required in subsection 2 has been given. The statement must:

(a) List the means by which, and the dates and times when, the notice was mailed, published or broadcast; and

(b) Include, as an attachment, a copy of the notice as mailed, published or broadcast.

(Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R116-03, 10-30-2003; R136-07, 1-30-2008)

Applications for Approval of New or Revised Depreciation Rates

NAC 703.2715 Applicability. (NRS 703.025, 704.210, 704.68865)

1. Except as otherwise provided in subsection 2, the provisions of NAC 703.2715 to 703.278, inclusive, apply to any electric, gas, telegraph or telephone company, except a carrier between local areas of transport and access as defined by NAC 704.00868 and any public utility furnishing water or sewer services under the jurisdiction of the Commission which:

(a) Has an annual operating revenue of at least $250,000; and

(b) Submits an application for approval of new or revised depreciation rates.

2. The provisions of NAC 703.2715 to 703.278, inclusive, only apply to a competitive supplier that is an incumbent local exchange carrier in the event the competitive supplier files a general rate application pursuant to subparagraph (2) of paragraph (b) of subsection 2 of NRS 704.68877 before January 1, 2012, to increase the rates or pricing of basic network services as set forth in the tariffs of the competitive supplier that were in effect on January 1, 2007.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84; A 12-12-89; 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

NAC 703.272 Application: Contents; action by Commission when filed as part of general rate application. (NRS 703.025, 704.210)

1. An application for approval of new or revised depreciation rates must include:

(a) For each account, the proposed depreciation rate and the existing depreciation rate which will be superseded.

(b) A complete and accurate explanation of the circumstances and conditions relied upon as a basis for filing the application. This may include directives of the Commission or any other regulatory or judicial body having jurisdiction over the premises.

2. If the application for approval of new or revised depreciation rates is filed as part of a general rate application pursuant to NRS 704.110, the Commission will issue an order granting or denying, in whole or in part, the new or revised depreciation rates in the application within 90 days after the date on which the certification required by NRS 704.110 is filed with the Commission, or within 180 days after the date on which the general rate application is filed with the Commission, whichever time is longer.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84; A 12-12-89; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

NAC 703.2725 Statements to be filed with application; index. (NRS 703.025, 704.210) The statements prescribed under NAC 703.276 to 703.2775, inclusive, must be filed with the Commission simultaneously with the application. An index of these statements must also accompany the application. This index must indicate which statements are supported by workpapers prepared by the applicant.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.273 Request for additional information. (NRS 703.025, 704.210) The Commission will request that information in addition to that specifically required under NAC 703.276 to 703.2775, inclusive, be submitted by a utility if needed to determine the reasonableness of the proposed depreciation rates.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.2735 Illustrative statements. (NRS 703.025, 704.210) Copies of illustrative statements are available at the Commission’s offices during business hours.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.274 Sufficiency of application. (NRS 703.025, 704.210) An applicant must be prepared to go forward on the data which have been submitted and to sustain the burden of proof of establishing that its proposed depreciation rates are reasonable. The material relied on in the application must be of such composition, scope and format that it would serve as the applicant’s case if the matter is set for hearing.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.2745 Form of statements. (NRS 703.025, 704.210) Statements must generally follow the illustrative examples available at the Commission’s offices. Each item must be labeled, mathematically correct and properly cross-referenced. Each statement must indicate the date or period it covers.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.275 Data not presented in statements. (NRS 703.025, 704.210) If the applicant has relied on data in support of its proposed depreciation rates other than that presented in the required statements, he must submit this data with the required statements.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.2755 Supporting data. (NRS 703.025, 704.210)

1. Data submitted in support of proposed depreciation rates must include the required recorded data, adjustments and other computations and information on which a utility relies to justify the proposed depreciation rates.

2. Any data or summaries included in the application which reflect the book of accounts, such as plant and reserve balances, must be supported by accounting workpapers. The workpapers must contain in separate columns all necessary particulars from which an auditor may readily identify the book data included in the application and verify that such data are in agreement with the applicant’s book of accounts. All statements and workpapers must be prepared in accordance with the classifications provided in the uniform systems of accounts which are applicable to the applicant. Workpapers in support of all adjustments, computations and other information included in the application must be cross-referenced and available for inspection by the Commission’s staff.

3. Each applicant must prepare and maintain workpapers which are sufficient to support the application. Failure to produce workpapers promptly on the request of authorized representatives of the Commission is a cause for dismissal by the Commission of the application in its entirety.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.276 Study of depreciation. (NRS 703.025, 704.210)

1. An applicant shall provide a study of depreciation based upon the remaining life of existing plant at intervals not exceeding 4 years or as otherwise directed by the Commission or other regulatory or judicial body having jurisdiction over the premises. The study must be filed with the Commission not later than 9 months after the date of the study upon which the proposed depreciation rates are based.

2. An applicant must include in its application statements A, B and C and such schedules, graphs and other information as necessary to support the study and the proposed depreciation rates. The Commission will determine whether this information is sufficient to support the application.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84; A 12-12-89)

NAC 703.2765 Statement A. (NRS 703.025, 704.210)

1. Statement A must consist of:

(a) A summary for each applicable account of the factors used to compute the proposed depreciation rates;

(b) The depreciable utility plants in place on the date of the study and the annual accrued depreciation which will be realized from the application of the proposed rates to the depreciable plant balances;

(d) The change in accrued depreciation which will result from the application of the proposed rates; and

(e) Intrastate jurisdictional factors and accrued depreciation and the change in jurisdictional accrued depreciation which will result from the application of the proposed rates. Any adjustments to accrued depreciation for amortization or for any other reason in any account, whether proposed or presently in effect, must be noted and fully and clearly explained in a footnote or supporting schedule.

2. If the date of the study does not coincide with the date of the most recent annual report on file with the Commission, supporting schedules must be made available showing, in separate columns, the additions and reductions in book accounts made during the period between the date of the annual report and the date of the study for depreciable plant balances and accumulated provisions for depreciation. All adjustments must be clearly and fully explained in the supporting material submitted so that the plant balances and other information contained in statement A may be reconciled with the corresponding information contained in the annual report.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.277 Statement B. (NRS 703.025, 704.210) Statement B must consist of the methods and procedures used in the study of depreciation and the basis for the final selection of the parameters utilized. The statement must include a description of previously utilized and authorized methods and procedures and a description of any changes in those methods or procedures proposed in this application.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.2775 Statement C. (NRS 703.025, 704.210) Statement C must consist of a summary of the analysis of the life of each plant and the value to be gained from salvage for each depreciable plant account. The statement must include such schedules, graphs and other information as are necessary to support the specific selection of the parameters utilized for each plant account. These summaries may be organized into functional groups and the analysis of value to be gained from salvage may be contained in a separate section.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84)

NAC 703.278 Recording of approved rates. (NRS 703.025, 704.210) If the Commission approves an application for new or revised depreciation rates, the approved rates must be recorded in the books and records of the utility not later than 12 months after the date of approval unless otherwise directed by the Commission or any other regulatory or judicial body having jurisdiction over the premises.

(Added to NAC by Pub. Service Comm’n, eff. 12-12-89)

Negotiation, Arbitration and Approval of Interconnection Agreements for Telecommunication Services

NAC 703.280 Applicability. (NRS 233B.050, 703.025, 704.210) The provisions of NAC 703.280 to 703.296, inclusive, apply to any request or petition submitted to the Commission pursuant to sections 251 and 252 of the Telecommunications Act of 1996, Public Law No. 104-104, 110 Stat. 56 (47 U.S.C. §§ 251 and 252).

(Added to NAC by Pub. Utilities Comm’n by R012-97, eff. 11-14-97)

NAC 703.284 Rights of parties and other interested persons or entities in proceedings. (NRS 233B.050, 703.025, 704.210) In any proceeding undertaken by the Commission in response to a request submitted to the Commission pursuant to 47 U.S.C. § 252 to arbitrate unresolved issues or to approve a negotiated or mediated agreement:

1. The petitioner and any other party to the negotiation or agreement who is not petitioning:

(a) Will be recognized as parties; and

(b) May engage in discovery, submit testimony, examine witnesses and otherwise fully participate in the proceedings.

2. The staff of the Commission, as designated by the Commission, and the Consumer’s Advocate may:

(a) Engage in discovery;

(b) Participate in any public hearing;

(c) Review unredacted copies of filings and responses to requests for discovery by the parties upon the execution of an appropriate protective agreement by the staff or the Consumer’s Advocate, as appropriate; and

(d) Submit comments and recommendations to the presiding Commissioner pursuant to the schedule for the submission of such comments and recommendations established by the presiding Commissioner.

3. Any other interested person or entity that files a notice of intent to comment with the Commission may:

(a) Participate in any public hearing;

(b) Review unredacted copies of filings and responses to requests for discovery by the parties upon the execution of an appropriate protective agreement by the person or entity seeking to review the filings and responses; and

(c) Submit comments and recommendations to the presiding Commissioner pursuant to the schedule for the submission of such comments and recommendations established by the presiding Commissioner.

(Added to NAC by Pub. Utilities Comm’n by R012-97, eff. 11-14-97)

NAC 703.286 Petition for arbitration; response to petitioner. (NRS 233B.050, 703.025, 704.210)

1. A petition for arbitration of unresolved issues submitted in accordance with 47 U.S.C. § 252 must include, in addition to the information required by 47 U.S.C. § 252(b)(2):

(a) The name of the person or entity submitting the petition.

(b) The name of the person or entity with whom the petitioner has been negotiating.

(d) A copy of the request to negotiate and, if any dispute exists regarding the date on which the request was submitted to or received by the local exchange carrier, as appropriate, an explanation of the dispute.

(e) A description of the relief which is being requested and a copy of the agreement or proposed language for an agreement for interconnection services or network elements which is being proposed by the petitioner.

(f) Reference to any:

(1) Regulations or statutes; or

(2) Opinions or decisions of the Federal Communications Commission, the Commission, the federal or state courts, or other persons or entities,

Ê which the petitioner believes are relevant to the resolution of the dispute.

(g) A copy of all available studies and other materials relating to cost and pricing which justify or support the position of the petitioner.

(h) A certificate of service demonstrating that the petition has been served upon the other party to the negotiations, the staff of the Commission and the Consumer’s Advocate and that a copy of the petition has been provided to each person and entity on the list for notification established pursuant to NAC 703.296.

(i) Any other information that the petitioner believes will be useful to the Commission.

2. An answer filed pursuant to 47 U.S.C. § 252(b)(3) must include:

(a) A response to each allegation made by the petitioner.

(b) The position on each unresolved issue which the answering party recommends that the Commission adopt and a copy of the agreement or proposed language for an agreement for interconnection services or network elements, or both, which the answering party supports.

(1) Regulations or statutes; or

(2) Opinions or decisions of the Federal Communications Commission, the Commission, federal or state courts, or other persons or entities,

Ê which the answering party believes are relevant to the resolution of the dispute.

(d) Copies of all available studies and other materials relating to cost and pricing which justify or support the position of the answering party.

(e) A certificate of service demonstrating that the answer has been served upon all other parties to the negotiations, the staff of the Commission and the Consumer’s Advocate and that copies of the answer have been provided to each person and entity who has filed a notice of intent to comment with the Commission.

(f) Any other information which the answering party believes will be useful to the Commission.

(Added to NAC by Pub. Utilities Comm’n by R012-97, eff. 11-14-97)

NAC 703.288 Negotiation of agreement through arbitration. (NRS 233B.050, 703.025, 704.210)

1. The presiding officer of a proceeding concerning a petition for arbitration filed in accordance with 47 U.S.C. § 252 shall use such procedures as are necessary to enable the presiding officer to issue a proposed order regarding the issues which have been submitted for resolution not later than 240 days after the date on which the request for negotiation was submitted to the local exchange carrier.

2. Not later than 10 days after the date on which a petition for arbitration is filed with the Commission, the Secretary of the Commission shall issue a public notice and provide notice to each party and each person and entity on the list for notification established pursuant to NAC 703.296, that a petition for arbitration has been received. The notice must specify the date:

(a) By which an answer must be filed.

(b) By which a notice of intent to comment must be filed.

3. An order for a prehearing conference issued by a presiding officer to consider a petition for arbitration must specify:

(a) The date on which an evidentiary hearing will be convened; and

(b) Any other matters deemed appropriate by the presiding officer, including reply comments, if desired.

4. The presiding officer shall prepare a proposed order which must be submitted to the Commission not later than 240 days after the date on which the request to negotiate was submitted to the local exchange carrier. The proposed order must be:

(a) Filed with the Commission;

(b) Served on the parties to the proceeding, the staff of the Commission and the Consumer’s Advocate; and

5. Any party or interested person or entity may file comments regarding the proposed order not later than 10 days after the date on which it is filed with the Commission. The scope of such comments must be limited to whether:

(a) The proposed agreement adopted by the proposed order discriminates against any telecommunications carrier that is not a party to the agreement;

(b) The implementation of the proposed agreement is consistent with the public interest, convenience and necessity; or

(c) The proposed agreement violates other requirements of the Commission, including, but not limited to, any standards adopted by the Commission relating to the quality of telecommunication service.

6. Any party or interested person or entity may file a response to any comments filed pursuant to subsection 5. Such responses must be filed with the Commission not later than 5 days after the date on which the comments are filed and may not exceed five pages in length.

(Added to NAC by Pub. Utilities Comm’n by R012-97, eff. 11-14-97; A by R010-05, 9-7-2005)

NAC 703.290 Petition for approval of mediated or negotiated agreement. (NRS 233B.050, 703.025, 704.210)

1. A petition for approval of a mediated or negotiated agreement submitted to the Commission pursuant to 47 U.S.C. § 252 must include:

(a) The names of the parties to the agreement.

(b) A copy of the agreement.

(d) Reference to any:

(1) Regulations or statutes; or

(2) Opinions or decisions of the Federal Communications Commission, the Commission, federal or state courts, or other persons or entities,

Ê which the petitioner believes are relevant to the approval of the agreement.

(e) A certificate of service demonstrating that:

(1) The petition has been served upon the other party to the negotiations, the staff of the Commission and the Consumer’s Advocate; and

(2) Notice of the filing has been provided by electronic mail to each person and entity on the list for notification established pursuant to NAC 703.296. The notice provided to each such person and entity must include a link to the public portion of a website at which the contents of the filing may be inspected and at which an electronic copy of the agreement may be obtained.

(f) Any other information which the petitioner believes will be useful to the Commission.

2. Not later than 10 days after the date on which a petition for the approval of the agreement is filed, the Secretary of the Commission shall issue a public notice on the website of the Commission indicating that a petition for approval has been received and will be processed pursuant to the procedural schedule set forth in the notice. The petitioner shall thereafter promptly publish the notice in the public portion of its website.

3. The procedural schedule set forth in a notice issued pursuant to subsection 2 must specify:

(a) That any interested person or entity may file comments regarding the agreement not later than 30 days after the date on which the agreement was filed with the Commission. The scope of such comments must be limited to whether:

(1) The agreement discriminates against any telecommunications carrier not a party to the agreement;

(2) The implementation of the agreement is not consistent with the public interest, convenience and necessity; or

(3) The agreement violates other requirements of the Commission, including, but not limited to, any standards adopted by the Commission relating to the quality of telecommunication service.

Ê Any comments filed pursuant to this paragraph must be, to the extent practicable, simultaneously served on the Commission, parties to the agreement, the staff of the Commission and the Consumer’s Advocate.

(b) That parties to the agreement may file reply comments and legal arguments not later than 15 days after the date established by the Commission for filing initial comments.

(c) The date on which any hearing will be conducted by the presiding Commissioner to obtain further clarification or information regarding the proposed agreement.

4. The notice provided by subsections 2 and 3 shall be the exclusive method for providing notice of the filing required by this section.

5. The Commission will issue a final order accepting or rejecting the agreement not later than 90 days after the date on which the petition for approval was filed with the Commission.

6. The Commission may reject an agreement, or any portion thereof, adopted by negotiation only if the Commission finds that:

(a) The agreement, or portion thereof, discriminates against a telecommunications carrier not a party to the agreement; or

(b) The implementation of such agreement or portion is not consistent with the public interest, convenience and necessity.

(Added to NAC by Pub. Utilities Comm’n by R012-97, eff. 11-14-97; A by R047-02, 10-24-2002; R136-07, 1-30-2008)

NAC 703.292 Petition for approval of statement of generally accepted terms. (NRS 233B.050, 703.025, 704.210)

1. A petition for the approval of a statement of generally accepted terms filed by a Bell operating company in accordance with 47 U.S.C. § 252(f) must be accompanied by a certificate of service demonstrating that the petition has been served upon the staff of the Commission and the Consumer’s Advocate and provided to each person and entity on the list for notification established pursuant to NAC 703.296.

2. Any interested person or entity may file written comments about a statement of generally accepted terms filed in accordance with 47 U.S.C. § 252(f) not later than 30 days after the date on which the statement of generally accepted terms is submitted to the Commission for approval.

3. The Bell operating company that submitted the statement of generally accepted terms in accordance with 47 U.S.C. § 252(f) may file a written response to any comments filed pursuant to subsection 2. Such a response must be filed with the Commission not later than 10 days after the date on which the comments are submitted to the Commission pursuant to subsection 2.

4. As used in this section, “Bell operating company” has the meaning ascribed to it in 47 U.S.C. § 153, as that section existed on November 14, 1997.

(Added to NAC by Pub. Utilities Comm’n by R012-97, eff. 11-14-97)

NAC 703.294 Petition for mediation. (NRS 233B.050, 703.025, 704.210)

1. Any party to a negotiation may pursue mediation of any unresolved issue. To initiate such mediation, the party must:

(a) Advise the other party to the negotiations that mediation is desired and propose a natural person to serve as a mediator; or

(b) Submit a petition to the Commission for the designation of a mediator. Such a petition must include:

(1) A statement of the issues to be submitted to mediation.

(2) A list of potential mediators, if desired by the petitioner.

(3) A certificate of service demonstrating that the petition has been served on the other party to the negotiations, the staff of the Commission and the Consumer’s Advocate.

2. Not later than 7 days after the date on which the petition requesting mediation is filed, the other party to the negotiation may:

(a) Identify other potential mediators;

(b) Indicate whether any of the mediators proposed by the petitioner are acceptable; and

3. Not later than 15 days after the date on which the Commission receives the petition, the Commission will issue an order advising the parties of the name of the person who will serve as mediator and attach to the order a list of the issues that the parties have requested be subject to mediation.

4. The parties to the mediation shall pay for the cost of the mediation as follows:

(a) Fifty percent of the cost must be paid by the petitioning party.

(b) Fifty percent of the cost must be paid by the party who is not petitioning.

5. A mediator shall conduct the mediation without supervision by the Commission. Any session conducted by the mediator is not a public hearing or proceeding, and the mediator is not subject to any procedural requirements established by this chapter or chapter 704 of NAC.

6. In conducting a mediation in accordance with this section, a mediator is not acting as an agent of the Commission and has no authority to act on behalf of or otherwise bind the Commission to any mediated decision.

7. Any party to a mediation may unilaterally terminate the mediation if, after good faith efforts have been made to resolve any disputed issues, it does not appear that a mutually acceptable resolution of the issues will be achieved.

(Added to NAC by Pub. Utilities Comm’n by R012-97, eff. 11-14-97)

NAC 703.296 List for notification of service of process. (NRS 233B.050, 703.025, 704.210)

1. The Secretary of the Commission shall establish a list of natural persons and entities that will be provided with copies of service of process and other documents in accordance with NAC 703.280 to 703.296, inclusive.

2. The Secretary shall regularly publish notices for the opportunity of other natural persons and entities to be included on the list established pursuant to this section. Such a notice of opportunity must be made in the manner set forth in subsection 2 of NAC 703.160.

3. The Secretary shall include on the list established pursuant to this section each natural person and entity that submits to the Commission a written request to be included on the list.

4. The Secretary shall include on the list established pursuant to this section an electronic mail address for each natural person and entity on the list.

(Added to NAC by Pub. Utilities Comm’n by R012-97, eff. 11-14-97; A by R136-07, 1-30-2008)

Tariffs: Public Utilities

NAC 703.375 Definitions. (NRS 703.025, 704.210) As used in NAC 703.375 to 703.410, inclusive, unless the context otherwise requires:

1. “Sheets” or “pages” means the pages within a tariff schedule displaying the schedule designation of which they are a part.

2. “Tariff” or “tariff schedule” means a collective body of rates, rentals, charges and classifications, and rules, as filed by a public utility, although the book or volume containing them may consist of one or many sheets or pages applicable to distinct service classifications, may contain a table of contents and may contain definitions.

[Pub. Service Comm’n, Gen. Order 3 § 23.020, eff. 1-1-79]—(NAC A by Pub. Utilities Comm’n by R107-07, 12-4-2007)

NAC 703.380 Applicability. (NRS 703.025, 704.210, 704.68865)

1. Except as otherwise provided in subsection 2, the provisions of NAC 703.375 to 703.410, inclusive, govern the filing and posting requirements of tariff schedules for rates, rules and contracts relating to rates applicable to gas, electric, telephone, and water and sewer utilities.

2. A competitive supplier is not required to maintain or file any schedule or tariff with the Commission except for the rates, pricing, terms and conditions of intrastate switched or special access service as provided in NRS 704.68879.

[Pub. Service Comm’n, Gen. Order 3 § 23.010, eff. 1-1-79]—(NAC A by Pub. Utilities Comm’n by R107-07, 12-4-2007; R136-07, 1-30-2008)

NAC 703.385 Form of tariff. (NRS 703.025, 704.210)

1. A tariff schedule must consist of the following parts or subdivisions arranged in order:

(a) A title page which must be in the following form:

TARIFF NO. ..........

Applicable to

(Kind of) Service

Naming

RATES AND RULES

(Name of Utility)

(Describe Area of Operations)

(b) A complete index of numbers and titles of effective sheets or pages listed in the order in which the tariff sheets or pages are arranged in the tariff schedule.

(c) A brief description of the territory served, with a map of the territory, types and classes of service rendered and the general conditions under which the service is rendered.

(d) Rate schedules.

(e) Rules.

2. For each page of a tariff schedule:

(a) A margin of at least three-fourths of an inch must be on the left side of the page, a margin of at least one-half of an inch on the right side, a margin of 1 inch at the top of the page and a margin of 2 inches at the bottom of the page.

(b) In the upper left-hand corner, the name and address of the public utility must be entered with the tariff number.

(c) In the upper right-hand corner of the top margin, the number of the sheet of the Commission with designations as to whether it is an original or revised sheet, together with the Commission’s number of the sheet cancelled, if any, by that sheet must be entered. Sheets must be numbered consecutively beginning with No. 1 for the first sheet filed.

(d) In the lower left-hand corner of the bottom margin, the words, “Advice No.: (advice letter number)” or “Notice No.: (notice number)” must be entered.

(e) In the center of the bottom margin, the words “Issued by: (name and title of the responsible utility official)” must be entered.

(f) The lower right-hand corner of the bottom margin must be left blank for use by the Commission.

3. Each rate schedule must include the following information, as nearly as possible in the order shown:

(a) The schedule number or other description.

(b) The class of service, such as commercial or domestic.

(d) The territory to which the schedule is applicable.

(e) Rates in tabular form, where applicable.

(f) Conditions, limitations, qualifications and restrictions. The conditions must be brief and clearly worded to cover all special conditions of the rates which are not fully covered in the rules.

(g) If a rate schedule or a rule is continued from one sheet to another, the word “continued” must be shown at the bottom of and at the beginning of the appropriate sheets.

4. Each rule must be numbered and have a title briefly indicating its contents. Appropriate general rules must cover the application of all rates, charges and service when the applicability is not fully set forth as a part of the rate schedules. The following subjects are representative of the type of information to be included in the rules of the utility set forth in the tariff schedules:

(a) Clear and concise definitions of the principal terms used in the tariff schedules.

(b) A description of the character of service rendered and the standards of service maintained.

(d) Conditions precedent to rendering temporary service or service to speculative projects.

(e) The procedure necessary to establish credit and to reestablish impaired credit.

(f) The deposits required for various purposes and classes of service, the conditions precedent to the return of deposits and the interest paid on the deposits.

(g) The method of serving notices.

(h) The methods of rendering bills, billing periods, due date and acceptable methods of payment.

(i) The methods used to adjust bills, the required amount to be deposited with the utility and the time limits.

(j) Reasons for discontinuance, procedures for notification, time limits and procedures necessary for the restoration of service and charges.

(k) Free extensions, deposits for extensions and refunds.

(l) Service connections.

(m) The right of the utility to enter onto the customer’s property.

(n) Any other items having special significance to particular conditions respecting the operations or policies of the utility.

[Pub. Service Comm’n, Gen. Order 3 §§ 23.030 & 23.050, eff. 1-1-79]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R010-05, 9-7-2005; R107-07, 12-4-2007)

NAC 703.390 Notices or letters of advice; reissued tariffs. (NRS 703.025, 704.210)

1. Tariff sheets must be transmitted to the Commission accompanied by a notice that is filed pursuant to either paragraph (a) of subsection 8 or paragraph (a) of subsection 9 of NRS 704.110 and that is not a part of the tariff or by a letter of advice that is not a part of the tariff. The appropriate filing fee, and a revised table of contents, if applicable, must be transmitted with a notice or letter of advice.

2. A notice or letter of advice must list the sheet numbers and titles of all tariff sheets being filed and the numbers of all sheets being cancelled. The notice or letter must state the reasons for the filing and the date on which the tariff sheets are proposed to become effective. The notice or letter of advice must call attention to each increase or decrease in rate or charge or change in condition which may result in an increase, decrease or withdrawal of service. If an increase is authorized by the Commission, reference in the notice or letter of advice to the decision number authorizing that increase must be given.

3. Notices or letters of advice must be numbered chronologically beginning with No. 1 for the first letter submitted by a public utility for each class of utility service rendered. A single series of letters may be used for telephone services combined in the same tariff schedule. The present series of numbers, if not inconsistent with the provisions of NAC 703.375 to 703.410, inclusive, must be continued.

4. Each revised or new tariff page or sheet must indicate on the bottom of the page or sheet the number of the notice or the letter of advice transmitting the revised filing.

5. If any tariff is reissued and completely cancels a current tariff or is a reissue of a previously effective tariff, the reissued tariff must bear the same number as the current or previously cancelled tariff, suffixed by a letter, for example, Tariff 1-A, and continuing through the alphabet as that tariff is subsequently reissued, as follows:

Tariff No. 1-A

cancels

Tariff No. 1.

[Pub. Service Comm’n, Gen. Order 3 § 23.060, eff. 1-1-79]—(NAC A by Pub. Utilities Comm’n by R010-05, 9-7-2005; R107-07, 12-4-2007)

NAC 703.400 Tariff sheets; proposals to increase rates; effective date of change filed by letter of advice. (NRS 703.025, 704.210)

1. A tariff sheet covering a service or commodity not previously furnished, a tariff sheet modifying an existing service and a tariff sheet that does not alter any rate or charge may be filed by a letter of advice as described in NAC 703.390.

2. An application to increase rates must be made in accordance with the provisions established for pleadings and motions and the requirements for public utilities requesting rate adjustments unless the rate increases generate annual gross revenues, as certified by the applicant, of $2,500 or less.

3. If the proposed increases involve $2,500 or less, the Commission may accept the filing of a letter of advice, if justification is fully set forth in that letter, without an application made pursuant to NAC 703.2201 to 703.2481, inclusive.

4. A change to a tariff that is filed by letter of advice does not become effective until approved by the Commission.

5. A copy of the utility’s tariff sheet approved by the Commission will be returned to the utility with a designation of the effective date and constitutes the utility’s official copy of the approved tariff sheet on file with the Commission.

[Pub. Service Comm’n, Gen. Order 3 § 23.080, eff. 1-1-79]—(NAC A 10-14-82; 1-5-89; A by Pub. Utilities Comm’n by R010-05, 9-7-2005)

NAC 703.405 Exceptions. (NRS 703.025, 704.210) To the extent permitted by statute, exceptions to the operation of NAC 703.375 to 703.410, inclusive, may be authorized by the Commission upon a proper showing in a petition filed by a public utility.

[Pub. Service Comm’n, Gen. Order 3 § 23.090, eff. 1-1-79]

NAC 703.410 Posting of schedules. (NRS 703.025, 704.210)

1. Each public utility shall post at each of its business offices, not including banks and other agents authorized by the utility to accept payments of bills for the convenience of customers, a complete copy of currently effective tariff schedules applicable to the area of service in which the business office is located.

2. Each public utility must maintain on file at its principal place of business a complete copy of all its currently effective tariff schedules.

[Pub. Service Comm’n, Gen. Order 3 § 23.040, eff. 1-1-79]

Construction of Utility Facilities

NAC 703.415 Applicability. (NRS 703.025, 704.210) The provisions of NAC 703.415 to 703.427, inclusive, apply to an application for a permit to construct a utility facility as defined in NRS 704.860. The requirements of NAC 703.415 to 703.427, inclusive, are in addition to other regulations pertaining to pleadings.

[Pub. Service Comm’n, Gen. Order 3 § 25.010, eff. 1-1-79]—(NAC A 3-19-87; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R188-03, 7-16-2004; R076-07, 10-31-2007)

NAC 703.417 Definitions. (NRS 703.025, 704.210) As used in NAC 703.415 to 703.427, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.834 to 704.860, inclusive, and NAC 703.4175 have the meanings ascribed to them in those sections.

(Added to NAC by Pub. Service Comm’n, eff. 3-19-87; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R188-03, 7-16-2004; R076-07, 10-31-2007)

NAC 703.4175 “Western Interconnection” defined. (NRS 703.025, 704.210) “Western Interconnection” means the synchronously operated electric transmission grid located in the western part of North America, including parts of Montana, Nebraska, New Mexico, South Dakota, Texas, Wyoming and Mexico and all of Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, Washington and the Canadian Provinces of British Columbia and Alberta.

(Added to NAC by Pub. Utilities Comm’n by R188-03, eff. 7-16-2004)

NAC 703.418 Declaration of purpose: “Water transmission lines” interpreted. (NRS 703.025, 704.210, 704.825) As used in NRS 704.825, the Commission will interpret “water transmission lines” to mean mains of any size that connect to raw water sources, water storage facilities, facilities to supply water or for the treatment or disposal of wastewater, or water distribution systems.

(Added to NAC by Pub. Utilities Comm’n by R188-03, eff. 7-16-2004)

NAC 703.4182 Utility facilities: “Compressor stations” interpreted. (NRS 703.025, 704.210, 704.860) As used in NRS 704.860, the Commission will interpret “compressor stations” to mean facilities that increase the pressure of gas to move it into gas transmission lines or storage facilities.

(Added to NAC by Pub. Utilities Comm’n by R188-03, eff. 7-16-2004)

NAC 703.4184 Utility facilities: “Gas transmission lines” interpreted. (NRS 703.025, 704.210, 704.860) As used in NRS 704.860, the Commission will interpret “gas transmission lines” to mean gas transmission lines not subject to the jurisdiction of the Federal Energy Regulatory Commission.

(Added to NAC by Pub. Utilities Comm’n by R188-03, eff. 7-16-2004)

NAC 703.4186 Utility facilities: “Sewer transmission and treatment facilities” interpreted. (NRS 703.025, 704.210, 704.860) As used in NRS 704.860, the Commission will interpret “sewer transmission and treatment facilities” to mean:

1. Facilities, including lift station facilities, which have a main that connects to other sewage transmission mains or wastewater treatment facilities; or

2. Treatment facilities where raw sewage influent is treated to make the sewage effluent meet required water quality standards.

(Added to NAC by Pub. Utilities Comm’n by R188-03, eff. 7-16-2004)

NAC 703.4188 Utility facilities: “Storage plants” interpreted. (NRS 703.025, 704.210, 704.860) As used in NRS 704.860, the Commission will interpret “storage plants” to mean above-ground facilities where gas is stored for use in a local distribution system.

(Added to NAC by Pub. Utilities Comm’n by R188-03, eff. 7-16-2004)

NAC 703.4192 Utility facilities: “To supply water” and “treatment of water” interpreted. (NRS 703.025, 704.210, 704.860) As used in NRS 704.860, the Commission will interpret facilities “to supply water” or for the “treatment of water” to mean facilities where surface water or ground water is treated to make potable water for distribution to customers.

(Added to NAC by Pub. Utilities Comm’n by R188-03, eff. 7-16-2004)

NAC 703.4194 Utility facilities: “Water storage facilities” interpreted. (NRS 703.025, 704.210, 704.860) As used in NRS 704.860, the Commission will interpret “water storage facilities” to mean structures used to store raw water or potable water that will be delivered into the distribution system of a utility.

(Added to NAC by Pub. Utilities Comm’n by R188-03, eff. 7-16-2004)

NAC 703.421 Application for permit when federal agency required to conduct environmental analysis. (NRS 703.025, 704.210, 704.870) An application filed with the Commission pursuant to paragraph (a) of subsection 2 of NRS 704.870 for a permit to construct a utility facility where a federal agency is required to conduct an environmental analysis of the proposed utility facility must contain the following information in the order listed:

1. A general description of the location of the proposed utility facility, including:

(a) A regional map that identifies the location of the proposed utility facility;

(b) Any alternative locations for the proposed utility facility; and

2. A general description of the proposed utility facility as required by subsection 2 of NRS 704.870, including:

(a) The size and nature of the proposed utility facility; and

(b) The natural resources that will be used during the construction and operation of the proposed utility facility.

3. A summary of any studies which the applicant anticipates will be made of the environmental impact of the proposed utility facility as required by subsection 2 of NRS 704.870, including a copy of all corresponding studies filed with appropriate federal agencies.

4. A copy of the public notice of the application and proof of the publication of the public notice, as required by subsection 4 of NRS 704.870.

5. Proof that a copy of the application has been submitted to the Nevada State Clearinghouse within the Department of Administration to enable agency review and comment.

(Added to NAC by Pub. Utilities Comm’n by R076-07, eff. 10-31-2007)

NAC 703.423 Application for permit when no federal agency required to conduct environmental analysis; amended application after final environmental assessment or environmental impact statement issued by federal agency. (NRS 703.025, 704.210, 704.870) An application filed with the Commission pursuant to subsection 1 of NRS 704.870 for a permit to construct a utility facility where no federal agency is required to conduct an environmental analysis of the proposed utility facility, or an amended application filed with the Commission pursuant to paragraph (b) of subsection 2 of NRS 704.870 for a permit to construct a utility facility where a federal agency has issued its final environmental assessment or environmental impact statement relating to the construction of the proposed utility facility, must contain the following information in the order listed:

1. A description of the location of the proposed utility facility as required by subsection 1 of NRS 704.870, including:

(a) A general description of the location of the proposed utility facility, including a regional map that identifies the location of the proposed utility facility;

(b) A legal description of the site of the proposed utility facility, with the exception of electric lines, gas transmission lines, and water and wastewater lines, for which only a detailed description of the site is required; and

2. A description of the proposed utility facility, including:

(a) The size and nature of the proposed utility facility;

(b) The natural resources that will be used during the construction and operation of the proposed utility facility;

(d) Scaled diagrams of the structures at the proposed utility facility.

3. A copy and summary of any studies which have been made of the environmental impact of the proposed utility facility as required by subsection 1 of NRS 704.870.

4. A description of any reasonable alternate locations for the proposed utility facility, a description of the comparative merits or detriments of each location submitted, and a statement of the reasons why the location is best suited for the proposed utility facility, as required by subsection 1 of NRS 704.870.

5. A copy of the public notice of the application or amended application and proof of the publication of the public notice, as required by subsection 4 of NRS 704.870.

6. Proof that a copy of the application or amended application has been submitted to the Nevada State Clearinghouse within the Department of Administration to enable agency review and comment.

7. An explanation of the nature of the probable effect on the environment, including:

(a) A reference to any studies described in subsection 3, if applicable; and

(b) An environmental statement that includes:

(1) The name, qualifications, professions and contact information of each person with primary responsibility for the preparation of the environmental statement;

(2) The name, qualifications, professions and contact information of each person who has provided comments or input in the preparation of the environmental statement;

(3) A bibliography of materials used in the preparation of the environmental statement; and

(4) A description of:

(I) The environmental characteristics of the project area existing at the time the application or amended application is filed with the Commission;

(II) The environmental impacts that the construction and operation of the proposed utility facility will have on the project area before mitigation; and

(III) The environmental impacts that the construction and operation of the proposed utility facility will have on the project area after mitigation.

Ê The data and analyses in the descriptions must be commensurate with the degree of the anticipated impacts.

8. An explanation of the extent to which the proposed utility facility is needed to ensure reliable utility service to customers in this State, including:

(a) If the proposed utility facility was approved in a resource plan or an amendment to a resource plan, a reference to the previous approval by the Commission; or

(b) If the proposed utility facility was not approved in a resource plan or an amendment to a resource plan, a description of the extent to which the proposed utility facility will:

(1) Provide utility service to customers in this State;

(2) Enhance the reliability of utility service in this State; and

(3) Achieve interstate benefits by the proposed construction or modification of transmission facilities in this State, if applicable.

9. An explanation of how the need for the proposed utility facility as described in subsection 8 balances any adverse effects on the environment as described in subsection 7.

10. An explanation of how the proposed utility facility represents the minimum adverse effect on the environment, including:

(a) The state of available technology;

(b) The nature of various alternatives; and

11. An explanation of how the location of the proposed utility facility conforms to applicable state and local laws and regulations, including a list of all permits, licenses and approvals required by federal, state and local statutes, regulations and ordinances. The explanation must include a list that indicates:

(a) All permits, licenses and approvals the applicant has obtained, including copies thereof; and

(b) All permits, licenses and approvals the applicant is in the process of obtaining to commence construction of the proposed utility facility. The applicant must provide an estimated timeline for obtaining these permits, licenses and approvals.

12. An explanation of how the proposed utility facility will serve the public interest, including:

(a) The economic benefits that the proposed utility facility will bring to the applicant and this State;

(b) The nature of the probable effect on the environment in this State if the proposed utility facility is constructed;

(c) The nature of the probable effect on the public health, safety and welfare of the residents of this State if the proposed utility facility is constructed; and

(d) The interstate benefits expected to be achieved by the proposed electric transmission facility in this State, if applicable.

(Added to NAC by Pub. Utilities Comm’n by R076-07, eff. 10-31-2007)

NAC 703.427 Expiration and renewal of permit. (NRS 703.025, 704.210)

1. Any construction permit issued pursuant to NAC 703.415 to 703.427, inclusive, expires 5 years after the date of final action by the Commission unless during that period the applicant has commenced to construct the utility facility and has diligently pursued that construction. In computing the 5-year period, the time the construction of the utility facility is delayed or made impractical because of legal action against the applicant will be excluded.

2. The applicant may apply for renewal of a construction permit at any time before its expiration. The Commission will renew the permit upon a showing of good cause.

(Added to NAC by Pub. Service Comm’n, eff. 3-19-87; A by Pub. Utilities Comm’n by R188-03, 7-16-2004; R076-07, 10-31-2007)

Securities

NAC 703.430 Applicability. (NRS 703.025, 704.210, 704.324)

1. Except as otherwise provided in subsection 2, the provisions of NAC 703.430 to 703.441, inclusive, apply to an application filed by a privately owned public utility organized under the laws of, and operating in the State, for an order by the Commission authorizing the issuance of a security, as defined in NRS 704.322, or the assumption of an obligation as a guarantor, endorser, surety or otherwise, with respect to any security of any other person, firm or corporation.

2. The provisions of NAC 703.430 to 703.441, inclusive, do not apply to a competitive supplier.

[Pub. Service Comm’n, Gen. Order 3 § 26.010, eff. 1-1-79]—(NAC A by Pub. Utilities Comm’n by R186-97, 1-30-98; R136-07, 1-30-2008)

NAC 703.435 Applications. (NRS 703.025, 704.210, 704.324) An application for an order of the Commission authorizing the issuance of a security or the assumption of an obligation pursuant to the provisions of NRS 704.322 to 704.328, inclusive, must contain the following data in the body of the application or as exhibits attached to it:

1. The amount and kind of stock or other security which the applicant desires to issue, the amount of bonds, notes or other evidence of indebtedness which the applicant desires to issue, with terms, rate of interest and whether and how to be secured, and the amount and description of the indebtedness which the applicant desires to assume. If the applicant wishes to issue preferred stock, the nature and extent of the preference must be indicated.

2. If the purpose for which the securities are to be issued is for:

(a) The acquisition of property, a detailed description of the property, the consideration to be paid for the property and the method utilized in arriving at the amount.

(b) The construction, completion, extension or improvement of facilities, a description of the proposal in reasonable detail, the cost or estimated cost of it and the reason or necessity for the expenditures.

(d) The maintenance of service, a statement of the reasons why service should be maintained from capital.

(e) The discharge or refund of obligations, a full description of the obligations to be discharged or refunded, including the character, date of incurrence, date of maturity, rate of interest, other material facts concerning the obligations, a statement showing the purpose for which those obligations have been incurred or the proceeds expended and the Commission’s decisions, if any, authorizing the incurrence of those obligations.

(f) The reorganization or readjustment of indebtedness of capitalization or retirement or exchange of securities, a full description of the indebtedness or capitalization to be readjusted or exchanged, the complete terms and conditions of the merger, consolidation, exchange or other reorganization, a pro forma balance sheet, if possible, or exchange, and a statement of the reason or necessity for the transaction.

(g) The reimbursement of money actually expended from income or from any other money in the treasury, a general description of the expenditures for which reimbursement is sought, the source of the expenditures, the periods during which the expenditures were made and the reason or necessity for that reimbursement.

3. A complete description of the obligation or liability to be assumed by the applicant as guarantor, endorser, surety or otherwise, the consideration to be received by the applicant and the reasons for the action.

4. If an applicant’s capital stock or parent company’s capital stock is listed on a national securities exchange as defined in the Securities Exchange Act of 1934, 15 U.S.C. § 78c, a copy of the latest proxy statement sent to stockholders, if not previously filed with the Commission. An applicant whose capital stock is registered pursuant to 15 U.S.C. § 781 must include in the application a copy of the latest proxy statement sent to stockholders containing the information required by the rules of the Securities and Exchange Commission, unless that proxy statement has previously been furnished to the Commission.

5. Any other information that may be requested by the Commission.

[Pub. Service Comm’n, Gen. Order 3 § 26.020, eff. 1-1-79]

NAC 703.440 Exhibits. (NRS 703.025, 704.210, 704.324) The following exhibits must be filed with an application:

1. If the applicant is a corporation, a copy of its articles of incorporation, certified by the Secretary of State, and all effective amendments. If the articles of incorporation have previously been filed with the Commission, the application need only make specific reference to that filing.

2. A copy of the most current financial statement of the applicant, which must include the following information:

(a) The amount and kinds of stock authorized by the articles of incorporation and the amount outstanding.

(b) Whether the preferred stock, if any, is cumulative or participating and whether its preference is on dividends, assets or otherwise.

(c) A brief description of each security agreement, mortgage and deed of trust upon the applicant’s property, including the date of execution, the debtor and secured party, the mortgagor and mortgagee, the trustor and beneficiary, the amount of indebtedness authorized to be secured, the amount of indebtedness actually secured and any provision for a sinking fund.

(d) The amount of bonds authorized and issued, the name of the public utility which issued them, each separate class and the date of issue, the par value, the rate of interest, the date of maturity, how they were secured and the amount of the interest issue paid on the bonds during the last fiscal year.

(e) Each note outstanding, the date of issue, the amount, date of maturity, rate of interest, in whose favor it was issued and the amount of interest paid on the note during the last fiscal year.

(f) Other indebtedness by classes and a description of any security, a brief statement of the devolution or assumption of any portion of that indebtedness upon or by any person or corporation if the original liability has been transferred, and the amount of interest paid on the indebtedness during the last fiscal year.

(g) The rate and amount of dividends paid during the 5 previous fiscal years and the amount of capital stock on which dividends were paid in each of those years.

(h) An income statement for the 12-month period immediately preceding the date of the application, insofar as practicable, and a balance sheet as of the date of the income statement.

[Pub. Service Comm’n, Gen. Order 3 § 26.040, eff. 1-1-79]

NAC 703.441 Notice to grant or deny application. (NRS 703.025, 704.210, 704.324) The Commission will grant or deny, in whole or in part, an application filed pursuant to NAC 703.430 to 703.443, inclusive, within 120 days after the date on which the application is filed.

(Added to NAC by Pub. Utilities Comm’n by R186-97, eff. 1-30-98)

NAC 703.443 Additional requirements for certain applications. (NRS 703.025, 704.210)

1. No public utility may file an application with the Commission to obtain authorization for bonds to be issued pursuant to the provisions of NRS 244A.669 to 244A.763, inclusive, or 268.512 to 268.568, inclusive, unless the governing body authorized to issue the bonds has completed all actions required by law that are conditions precedent to the issuance of the bonds, except the passage of the resolution authorizing the issuance of the bonds.

2. In addition to complying with the requirements set forth in NAC 703.430, 703.435 and 703.440, an application filed by a public utility seeking authorization for bonds to be issued pursuant to the provisions of NRS 244A.669 to 244A.763, inclusive, or 268.512 to 268.568, inclusive, must include:

(a) A complete summary of the conditions, restrictions and general terms applicable to the acquisition and use of the bonds by the public utility;

(b) Copies of the resolutions, contracts, memoranda and other written documents which specify the conditions, restrictions and general terms applicable to the acquisition and use of the bonds by the public utility; and

(c) The amount of any bonds, the interest on which is exempt from federal income tax or excluded from gross revenue for the purposes of federal income tax, that will be used to finance the project and the public benefits to be provided if an allocation of the State’s volume cap for those bonds is requested by the public utility pursuant to the provisions of NRS 348A.010 to 348A.040, inclusive.

(Added to NAC by Pub. Service Comm’n, eff. 11-12-93)

Railroad Crossings

NAC 703.445 Applicability. (NRS 703.025, 704.210, 704.300) The provisions of NAC 703.445 to 703.475, inclusive, apply to applications made pursuant to NRS 704.300 and 704.305. These requirements are in addition to the regulations pertaining to pleadings and to NAC 703.662 and 703.665.

[Pub. Service Comm’n, Gen. Order 3 § 27.010, eff. 1-1-79]—(NAC A by Pub. Utilities Comm’n by R116-03, 10-30-2003)

NAC 703.450 Application to construct public highway across railroad. (NRS 703.025, 704.210, 704.300) An application to construct a public road, highway or street across a railroad must be made in writing by the municipal, county, state or other governmental authority which proposes the construction. The application must contain the following data:

1. A legal description of the location of the proposed crossing.

2. Crossing numbers of the nearest existing public crossing on each side of the proposed crossing. Numbers may be obtained from the crossing sign at the crossing or from the office of the railroad.

3. A statement showing the public need to be served by the proposed crossing.

4. If the proposed crossing is at a grade, a statement showing why a separation of grades is not practicable.

5. A statement showing the signs, signals or other protection that the applicant recommends for the proposed crossing.

6. A map of suitable scale, between 50 and 200 feet per inch, showing the accurate locations of all streets, roads, property lines, tracks, buildings, structures or other obstructions to view for a distance of at least 400 feet along the railroad and 200 feet along the highway in each direction from the proposed crossing. This map must show the character and width of the existing or proposed surface or pavement on the street or roads on each side of the proposed crossing.

7. A map of suitable scale, between 1,000 and 3,000 feet per inch, showing the relation of the proposed crossing to existing roads and railroads in the general vicinity of the proposed crossing.

8. A profile showing the ground line, grade line and the rate of grades of approach on all railroads affected by the proposed crossing.

[Pub. Service Comm’n, Gen. Order 3 § 27.020, eff. 1-1-79]

NAC 703.455 Application to construct railroad track across public highway. (NRS 703.025, 704.210, 704.300) An application to construct a railroad track across a public road, highway, or street must be made in writing by the railroad which proposes the construction. The application must contain the data required by NAC 703.450 and the following:

1. A certified copy of the franchise or permit, if required, from the authority having jurisdiction, which gives the railroad the right to cross the highway involved. If the franchise or permit has already been filed, the application must make a specific reference to that filing.

2. The proposed crossing number.

3. A map required by subsection 6 of NAC 703.450, which must also show by distinct colorings or lines, all new tracks or changes in existing tracks, within the limits of the drawing, which would be made in connection with the construction of the proposed crossing.

[Pub. Service Comm’n, Gen. Order 3 § 27.030, eff. 1-1-79]

NAC 703.460 Alteration of existing crossing. (NRS 703.025, 704.210, 704.300) An application or complaint initiated pursuant to NRS 704.300 for the elimination, alteration, addition or change of a highway crossing or crossings over any railroad at grade, or above or below grade, including its approaches and surface, must be made in writing to the Commission. The application or complaint must contain the information required by NAC 703.450, except that the crossing number of the affected crossing must be stated in addition to the information required by subsection 2 of NAC 703.450.

[Pub. Service Comm’n, Gen. Order 3 § 27.040, eff. 1-1-79]

NAC 703.465 Agreement to apportion costs. (NRS 703.025, 704.210, 704.300) If the railroad and governmental units involved have negotiated an agreement apportioning costs pursuant to subsection 8 of NRS 704.305, a copy of that agreement must be included with the original application filed with the Commission pursuant to NAC 703.445 to 703.475, inclusive.

[Pub. Service Comm’n, Gen. Order 3 § 27.070, eff. 1-1-79]

NAC 703.470 Service of application or complaint. (NRS 703.025, 704.210, 704.300)

1. A copy of an application or complaint filed pursuant to NAC 703.445 to 703.475, inclusive, must be served on:

(a) The governing body of each county, city or town which is directly affected by the filing;

(b) The railroad company affected; and

2. A certification of this service must be filed with the original application or complaint.

[Pub. Service Comm’n, Gen. Order 3 § 27.050, eff. 1-1-79]—(NAC A 1-6-84)

NAC 703.475 Hearing. (NRS 703.025, 704.210, 704.300)

1. Upon the filing of an application or complaint, the Commission will hold a hearing in the manner prescribed in NAC 703.160 and 703.665.

2. Upon the conclusion of the hearing, the Commission will within a reasonable time either deny the application or the relief sought in the complaint, in writing, stating its reasons, or issue its order granting in whole or in part the application or the relief sought in the complaint, attaching thereto such conditions as the Commission deems necessary to protect the public and to prevent accidents.

[Pub. Service Comm’n, Gen. Order 3 § 27.060, eff. 1-1-79]—(NAC A by Pub. Utilities Comm’n by R116-03, 10-30-2003)

Subdivision of Land

NAC 703.476 Tentative map: Submission to and action by Commission’s staff. (NRS 703.025, 704.210, 704.6672)

1. When a copy of a tentative map for a subdivision is submitted to the Commission pursuant to NRS 278.335, an additional copy of the tentative map must be simultaneously submitted to the Commission’s staff for review.

2. In addition to the written comments required by subsection 5 of NRS 278.335, the Commission’s staff will, within the period specified therein, also file written comments with:

(a) The planning commission or the governing body described in subsection 5 of NRS 278.335;

(b) The Division of Water Resources of the State Department of Conservation and Natural Resources; and

(c) The Division of Environmental Protection of the State Department of Conservation and Natural Resources or the district board of health acting for the Division pursuant to subsection 2 of NRS 278.335.

3. The written comments required by subsection 2 will:

(a) State whether or not the proposed subdivision identified in the tentative map is subject to the provisions of subsections 1 and 2 of NRS 704.6672; and

(b) If the proposed subdivision is subject to those provisions, notify the applicant for the proposed subdivision that he must file with the Commission an application for approval of the final map for the subdivision and provide the information required by NAC 703.477.

(Added to NAC by Pub. Utilities Comm’n by R043-06, eff. 12-7-2006)

NAC 703.477 Final map: Application for approval. (NRS 703.025, 704.210, 704.6672)

1. An application for approval of a final map for a subdivision that was filed with the Commission pursuant to NAC 703.476 must include the following information in the application or as exhibits attached thereto:

(a) Evidence that the applicant has filed an application with the Commission for a certificate of public convenience and necessity; or

(b) In lieu of an application for a certificate of public convenience and necessity, evidence that the applicant will have the technical, managerial and financial capability to operate the water or wastewater system in a reliable manner and provide continuous and adequate service to its customers.

2. To demonstrate technical capability, the applicant must provide:

(a) Evidence that there is a need for a water or wastewater service and no other utility is willing or able to serve the proposed service area.

(b) A plan that demonstrates the continuing ability of the applicant to meet the needs, relating to wastewater treatment and disposal, of the entire service area to be served by the applicant.

(c) A plan that demonstrates the continuing ability of the applicant to meet the needs, relating to water resources, of the entire service area to be served by the applicant or, in lieu of such a plan, an applicant may provide information which demonstrates that the applicant has adequate resources to meet such needs, including, without limitation:

(1) Copies of all documents evidencing water rights and accompanying maps.

(2) Hydrological data defining the reliability of the source.

(3) Any additional information which is necessary to demonstrate the ability of the applicant to meet such needs.

(d) An estimate of the number of customers to be served in the proposed service area through the first 5 years of service, and the estimated number of customers at build-out of the proposed service area.

(e) A full description of the proposed water or wastewater system, including the proposed normal operating and emergency standby water or wastewater facilities to serve the area for which the certificate is sought.

(f) If the applicant’s facilities will be phased in as customers are added, a description of the phasing thresholds for each facility that will be phased in.

3. To demonstrate managerial capability, the applicant must provide:

(a) An operations and maintenance plan for the proposed water or wastewater system, including, without limitation:

(1) The contact information for all managers, certified operators and customer service representatives of the system;

(2) The normal procedures for maintenance used to ensure the proper operation of the system; and

(3) A plan describing how worn-out facilities are to be replaced.

(b) A standard operating procedure for all employee communications.

4. To demonstrate financial capability, the applicant must provide:

(a) An explanation of whether and to what extent customers will directly or indirectly make contributions to the costs of the facilities of the proposed system. The explanation must include an indication of whether the applicant intends to assess charges for the extension of any lines and whether the price of lots or units in the proposed service area will reflect the cost of the investment in the proposed system.

(b) Evidence that the proposed revenues from reasonable rates will give the applicant an opportunity to earn a fair return on its regulated rate base.

(d) A depreciation schedule for the different water or wastewater treatment facilities.

(e) A method for replacing its rate base when the facility reaches the end of its service life.

(Added to NAC by Pub. Service Comm’n, eff. 1-6-84; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R043-06, 12-7-2006)—(Substituted in revision for NAC 703.203)

NAC 703.478 Final map: Verification of approval or disapproval by Commission. (NRS 703.025, 704.210, 704.6672) The Commission will send written verification of its approval or disapproval of an application for approval of the final map for a subdivision that is filed with the Commission pursuant to NAC 703.476 to the Division of Environmental Protection of the State Department of Conservation and Natural Resources or the district board of health acting for the Division pursuant to NRS 278.335, consistent with subparagraph (2) of paragraph (a) of subsection 1 of NRS 278.377, and with the Division of Water Resources of the State Department of Conservation and Natural Resources, consistent with paragraph (b) of subsection 1 of NRS 278.377, within 2 business days after issuance of a final order in the matter.

(Added to NAC by Pub. Utilities Comm’n by R043-06, eff. 12-7-2006)

PRACTICE BEFORE COMMISSION

General Provisions

NAC 703.481 Restrictions on certain communications with Commissioner or hearing officer while contested case is pending. (NRS 703.025, 704.210)

1. In any contested case pending before the Commission, a party or commenter or an authorized representative or attorney of a party or commenter shall not communicate, directly or indirectly, with a Commissioner or a hearing officer regarding any substantive issues of fact or law that relate to the contested case, unless the communication:

(a) Is part of a pleading filed and served in accordance with the provisions of this chapter; or

(b) Occurs during a formal hearing before the Commissioner or the hearing officer.

2. The provisions of this section apply from the date on which the pleading or other document that commences the contested case is filed with the Secretary until 15 calendar days after the date on which the Commission issues a final order in the contested case or, if a petition for reconsideration is filed, until the date on which the Commission issues the order on reconsideration.

3. As used in this section, “contested case” means every proceeding pending before the Commission except:

(a) A rule-making proceeding conducted pursuant to NRS 233B.0395 to 233B.115, inclusive, whether the proceeding is commenced pursuant to NAC 703.546 or otherwise;

(b) A proceeding involving a petition for a declaratory order or an advisory opinion pursuant to NRS 233B.120 and NAC 703.825; or

(c) Any proceeding in which the Commission is not required by law to conduct a hearing before determining any issue of fact or law, or both.

(Added to NAC by Pub. Utilities Comm’n by R047-02, eff. 10-24-2002)

Hearing Officers

NAC 703.486 Appointment; reassignment of matter; revocation of appointment; proposed orders; appeal and review of decisions. (NRS 703.025, 703.130, 704.210)

1. The Chairman may appoint one or more hearing officers to preside over and conduct hearings or other proceedings, or any portion thereof, in any matter pending before the Commission in which hearing officers are authorized to act pursuant to NRS 703.130. The Chairman, in his discretion, may appoint an employee of the Commission or a contractor of the Commission to serve as a hearing officer. The Chairman may reassign a matter from one hearing officer to another hearing officer if procedural circumstances require. The Commission may reassign a matter from one hearing officer to another hearing officer if required by any other circumstances.

2. If the Chairman appoints a hearing officer, the Chairman retains the right, at any time, to revoke the appointment and to assume responsibility for presiding over and conducting the hearings or other proceedings or to designate another Commissioner or hearing officer to preside over and conduct the hearings or other proceedings.

3. Except as otherwise provided in subsection 4, if the Chairman appoints a hearing officer to preside over and conduct any proceeding involving an application, a petition or a complaint, after the close of all evidentiary hearings in the matter, the hearing officer shall file with the Commission a proposed order that sets forth the findings and conclusions of the hearing officer and the reasons and bases for those findings and conclusions. The proposed order must be served on each party of record. Any party of record may file comments to the proposed order in the same manner that comments may be filed to a proposed order of the Commission pursuant to NAC 703.785.

4. A proposed order filed by a hearing officer pursuant to subsection 3 must not be served upon parties of record and is not subject to comment by parties of record if the proceeding is:

(a) A noncontested case;

(b) A contested case that is settled in its entirety by stipulation; or

(c) A proceeding held pursuant to NRS 703.377 and the holder of the certificate, permit or license who is the subject of the proceedings fails to appear.

5. The decisions of a hearing officer are subject to appeal and review by the Commission in the same manner that the decisions of a presiding officer are subject to appeal and review by the Commission pursuant to the provisions of this chapter.

6. Upon review of a decision of a hearing officer, the Commission may affirm or reverse the decision, in whole or in part, and may take any other just and reasonable action with regard to the decision, including, without limitation, declining to act on the decision on an interlocutory basis.

(Added to NAC by Pub. Utilities Comm’n by R047-02, eff. 10-24-2002; A by R010-05, 9-7-2005)

Parties and Commenters

NAC 703.490 Classification of parties. (NRS 703.025, 704.210)

1. According to the nature of the proceedings before the Commission and the relationships of the parties to the proceedings, a party to a proceeding must be styled an applicant, complainant, petitioner, respondent or intervener.

2. A person applying in the first instance for any privilege, right or authorization from the Commission must be styled an “applicant.”

3. A person who complains to the Commission of a