[Rev. 8/6/2022 6:00:23 PM]

[NAC-704 Revised Date: 6-20]

CHAPTER 704 - REGULATION OF PUBLIC UTILITIES GENERALLY

GENERAL PROVISIONS

704.005        Definitions.

704.0052      “Access line” defined.

704.0054      “Basic network service” defined.

704.0055      “Basic service” defined.

704.0056      “Business line service” defined.

704.006        “Commission” defined.

704.0065      “Competitive service” defined.

704.0066      “Competitive supplier” defined.

704.0068      “Deregulated service” defined.

704.007        “Deregulation” defined.

704.0075      “Discretionary service” defined.

704.0076      “Energy efficiency contract” defined.

704.00765    “Energy efficiency measure” defined.

704.0077      “Essential service” defined.

704.0079      “Exchange” defined.

704.008        “Exemption from tariff” defined.

704.0085      “Flexibility of pricing” defined.

704.00861    “Incumbent local exchange carrier” defined.

704.00862    “Interexchange carrier” defined.

704.00863    “Interruptible irrigation sales” defined.

704.00864    “Intraexchange carrier” defined.

704.00868    “Local area of transport and access” and “LATA” defined.

704.0087      “Operator service” defined.

704.00872    “Other essential service” defined.

704.008723  “Portfolio energy credit” defined.

704.008727  “Portfolio energy system or efficiency measure” defined.

704.00873    “Presiding officer” defined.

704.00876    “Provider of last resort” defined.

704.0088      “Reseller” defined.

704.00882    “Small-scale provider of last resort” defined.

704.00883    “Telecommunication” defined.

704.008835  “Telecommunication provider” and “telephone company” defined.

704.00884    “Telecommunication service” and “telephone service” defined.

704.009        “Uniform System of Accounts” defined.

704.0097      Deviation from provisions of chapter.

DEFERRED ACCOUNTING

704.023        Definitions.

704.024        “Adjustment date” defined.

704.030        “Amortization period” defined.

704.031        “Annual rate adjustment application” defined.

704.032        “Base tariff energy rate” defined.

704.035        “Deferred energy accounting” defined.

704.037        “Deferred energy accounting adjustment” defined.

704.039        “Deferred energy application” defined.

704.045        “Deferred energy balance” defined.

704.048        “Electric utility” defined.

704.050        “Energy costs” defined.

704.055        “FERC account” defined.

704.056        “Gas utility” defined.

704.058        “Off-system sales” defined.

704.061        “Purchased gas” defined.

704.063        “Test period” defined.

704.075        Applicability; notice by gas utility of its intent to use deferred energy accounting.

704.090        Gas utilities: Termination of deferred energy accounting.

704.095        Deferred energy accounts: General requirements.

704.101        Deferred energy accounts: Required entries.

704.105        Account for energy cost adjustments.

704.111        Clearing deferred energy accounts; calculation and application of deferred energy accounting adjustment.

704.116        Deferred energy applications; calculation and effective period of base tariff energy rate and deferred energy accounting adjustment.

704.117        Gas utilities: Application to revise base tariff energy rate.

704.1172      Gas utilities making quarterly adjustments to base tariff energy rate: Application to make quarterly adjustments to deferred energy accounting adjustment.

704.1174      Gas utilities: Application to discontinue making quarterly adjustments to deferred energy accounting adjustment and to establish deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116.

704.1176      Electric utilities: Application to make quarterly adjustments to deferred energy accounting adjustment.

704.1178      Electric utilities: Application to discontinue making quarterly adjustments to deferred energy accounting adjustment and to establish deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116.

704.118        Notice of certain applications, hearings thereon and quarterly adjustments to base tariff energy rate and, if applicable, deferred energy accounting adjustments.

704.120        Adoption by reference of certain accounts from Uniform System of Accounts of Federal Energy Regulatory Commission.

704.135        Gas utilities: Calculation of certain base tariff energy rates and recommendation of preferred base tariff energy rate.

704.145        Additional requirements for deferred energy accounts; accounts relating to income taxes.

704.150        Carrying charges.

704.161        Gas utilities: Application to make quarterly adjustments to base tariff energy rate.

704.166        Gas utilities: Application to terminate quarterly adjustments to base tariff energy rate and to establish base tariff energy rate.

704.195        Monthly reports.

RECOVERY OF VARIABLE INTEREST EXPENSE OR DIVIDENDS

704.210        Definitions.

704.211        “Amortization period” defined.

704.212        “Deferred energy accounting adjustment” defined.

704.213        “FERC account” defined.

704.214        “Test period” defined.

704.215        “Weighted average variable interest or dividend rate” defined.

704.216        “Utility” defined.

704.217        Application to recover deferred variable interest expense or dividends: Filing and contents.

704.218        Calculation of revenues and expenses related to allowable variable interest expense or dividends.

704.219        Calculation of revenues and expenses related to accumulation of deferred variable interest or dividends.

704.220        Computation of carrying charge.

704.221        Limit on recovery of debit balance in subaccount for deferred variable interest expense.

704.222        Effective date of change in rate.

ANNUAL REPORTS

704.225        Submission; contents.

REPORTS OF ACCIDENTS

704.228        Definitions.

704.230        “Accident” defined.

704.231        “Estimated property damage” defined.

704.232        “Pipeline” defined.

704.235        Exemptions.

704.240        Initial report: Submission; designated employee.

704.245        Initial report: Contents; confidentiality.

704.250        Submission of final report and additional information; rescission of initial report.

REPORTS OF SIGNIFICANT SERVICE OUTAGES

704.2555      Definitions.

704.256        “Pipeline” defined.

704.2565      “Significant service outage” defined.

704.257        Annual certification of population by Commission.

704.2575      Initial report: Submission; designated employee.

704.258        Initial report: Contents; confidentiality.

704.2585      Submission of final report and additional information; rescission of initial report.

704.259        Electric utilities: Quarterly reports.

704.2595      Water utilities: Notification of certain scheduled maintenance.

DISCLOSURES TO CUSTOMERS BY CERTAIN ELECTRIC UTILITIES

704.2761      Definitions.

704.2763      “Biofuel” defined.

704.2765      “Biomass” defined.

704.2767      “Electric utility” defined.

704.2769      “Excluded sale” defined.

704.2771      “Generation asset” defined.

704.2773      “Heavy metal” defined.

704.2775      “Native generation” defined.

704.2777      “Purchased power” defined.

704.2783      Distribution and formatting of disclosure statements.

704.2785      Contents of disclosure statement: Information relating to certain sales, energy sources and emissions.

704.2787      Contents of disclosure statement: Information relating to certain products, services and programs.

ADVERTISING BY CERTAIN ELECTRIC AND GAS UTILITIES

704.280        Definitions.

704.285        Applicability.

704.290        Promotional or political advertising.

704.295        Exemptions.

RIGHTS AND OBLIGATIONS OF CUSTOMERS OF CERTAIN ELECTRIC AND GAS UTILITIES

704.302        Definitions.

704.3022      “Advanced service delivery meter” defined.

704.3023      “Advanced service delivery meter customer” defined.

704.303        “Customer” defined.

704.304        “Deposit” defined.

704.3055      “Division” defined.

704.3065      “Elderly” defined.

704.307        “Especially dangerous to health” defined.

704.309        “Guarantor” defined.

704.3105      “Person with a disability” defined.

704.313        “Rule” defined.

704.314        “Satisfactory credit” defined.

704.315        “Termination of service” defined.

704.316        “Timely payment” defined.

704.317        “Utility” defined.

704.320        Records of utility.

704.321        Terms of agreement with customer.

704.322        Form for complaint by customer.

704.323        Transmittal of information to customers.

704.326        Application for service; provision of range of historical energy use at location of service.

704.327        Establishment of credit.

704.328        Deposit: Generally.

704.329        Deposit: Alternatives.

704.330        Deposit: Additional amount.

704.331        Deposit: Notification of requirement.

704.332        Deposit: Payment in installments.

704.333        Deposit: Return.

704.334        Guarantors.

704.336        Basis and contents of bill for service.

704.337        Billing based upon estimated usage.

704.338        Program for equalized billing for service.

704.339        Billing and payment for service.

704.341        Program for deferred payment of delinquent bill.

704.342        Program to pay bills of customers under financial hardship; coordination with other entities providing assistance to lower-income customers.

704.3425      Visits for service and repair.

704.343        Testing meters for accuracy.

704.344        Adjustment of bill when meter inaccurate.

704.346        Resolution of dispute regarding bill, charge or service.

704.348        Refusal to provide service.

704.350        Termination of service: No prior notice.

704.355        Termination of service: Prior notice.

704.360        Termination of service: Provision of notice.

704.365        Termination of service: Designation and notification of third person.

704.370        Termination of service: Postponement when dangerous to health.

704.372        Termination of service: Postponement upon agreement to pay delinquent bill.

704.375        Termination of service: Miscellaneous restrictions.

704.380        Termination of service: Restrictions regarding certain delinquent bills.

704.383        Resumption of service.

704.385        Written notice to customers and outreach concerning elderly persons and persons with disability.

704.390        Notice of termination of service to customer who is elderly or who is person with disability.

TERMINATION OF RESIDENTIAL WATER SERVICE

704.391        Definitions.

704.3912      “Customer” defined.

704.3914      “Division” defined.

704.3916      “Especially dangerous to health” defined.

704.3918      “Landlord” defined.

704.392        “Termination of service” defined.

704.3922      “Utility” defined.

704.3924      Terms of agreement with customer.

704.3926      Termination without prior notice.

704.3928      Termination after notice.

704.393        Provision of notice of termination.

704.3932      Program of deferred payments.

704.3934      Postponement of termination during forecasted period of extreme heat.

704.3936      Postponement of termination when dangerous to health.

RIGHTS AND OBLIGATIONS OF CUSTOMERS OF CERTAIN TELECOMMUNICATION PROVIDERS

704.395        Definitions.

704.3955      “Connection fee” defined.

704.396        “Cosigner” defined.

704.3965      “Customer” defined.

704.397        “Deposit” defined.

704.3975      “Division” defined.

704.398        “Elderly” defined.

704.3985      “Especially dangerous to health” defined.

704.399        “Guarantor” defined.

704.3995      “Person with a disability” defined.

704.401        “Satisfactory credit” defined.

704.4015      “Termination of service” defined.

704.402        “Third person” defined.

704.4025      “Unsatisfactory credit” defined.

704.403        “Utility” defined.

704.404        Applicability; purpose.

704.4045      Records of utility.

704.4051      Dissemination of information concerning customers.

704.406        Availability of information to customers.

704.4065      Notice of programs for customers with special needs.

704.407        Terms of agreement with customer.

704.408        Application for service.

704.4085      Establishment of credit.

704.409        Deposit: Generally.

704.4095      Payment of deposit and connection fee.

704.4105      Deposit: Return.

704.411        Cosigners and guarantors.

704.412        Contents of bill for service.

704.4125      Payment of bill for service.

704.413        Agreement for deferred payment of bill.

704.4135      Apportionment of partial payment of bill.

704.414        Credit to account of customer.

704.4145      Resolution of dispute regarding bill, charge or service.

704.4151      Furnishing local service to customer who fails to pay disputed toll charges and files complaint; action upon resolution of complaint.

704.4155      Continuation of certain services upon temporary suspension of basic service because of nonpayment.

704.416        Grounds for termination of service.

704.4165      Notice of intended termination of service.

704.417        Special notice of proposed termination when dangerous to health.

704.4175      Designation and notification of third persons.

704.418        Refusal of service and termination without notice.

704.4185      Postponement of termination when dangerous to health.

704.419        Postponement of termination upon agreement to pay delinquent bill.

704.4195      Restrictions on termination: Certain delinquent bills; weekends and holidays.

704.4205      Contesting propriety of termination.

704.421        Resumption of service.

REGULATIONS CONCERNING CERTAIN TELECOMMUNICATION SERVICES

Interstate Pay-Per-Call Service

704.423        Adoption by reference of standards of Federal Communications Commission.

Intrastate Long-Distance Service

704.424        Resale of service.

Basic Network Service and Business Line Service

704.4244      Applicability.

704.4247      “Promotional service” defined.

704.42472    Limitations on types of promotional service that may be offered.

704.42474    Restrictions on offers of promotional service.

704.42476    Written notice of certain offers of promotional service.

704.42478    Application for inclusion of promotional service as tariffed service.

Change of Preferred Long Distance Carrier

704.426        Slamming rules and remedies of Federal Communications Commission: Adoption by reference; administration and enforcement.

ELECTRICAL SAFETY CODE

704.450        Adoption by reference of National Electrical Safety Code.

INTRASTATE TRANSPORTATION OF GAS

704.455        Applicability.

704.460        Adoption by reference of certain federal regulations.

704.461        Adoption by reference of certain standards of National Fire Protection Association.

704.465        Certain reports and notifications required to be made concurrently to United States Department of Transportation and Commission.

CURTAILMENT OF DISTRIBUTION OF NATURAL GAS

704.471        Definitions.

704.473        “Boiler fuel” defined.

704.477        “Capability of using an alternative fuel” defined.

704.479        “Commercial use” defined.

704.481        “Correctional facility” defined.

704.483        “Firm requirement” defined.

704.487        “Hospital” defined.

704.489        “Industrial use” defined.

704.491        “Interruptible requirement” defined.

704.493        “School” defined.

704.497        Purpose; applicability.

704.499        Duty to deliver continuous supply and avoid shortages, interruptions.

704.501        Priorities in curtailment of service.

704.503        Lower level of priority to be fully curtailed before higher level; partial curtailments.

704.507        Curtailment in emergencies.

704.509        Distribution of new supply made available by customer.

704.511        Information to be furnished to suppliers and obtained from customers.

NATURAL GAS SUPPLIED TO GENERATING, INDUSTRIAL AND LARGE COMMERCIAL CUSTOMERS

704.516        Definitions.

704.517        Applicability.

704.518        Rates and charges: Schedule; contract for special services; customer subject to schedule or contract; establishment by utility; exemption from certain provisions.

704.519        Schedule of rates and charges: Effective date.

704.521        Schedule of rates and charges: Written justification.

704.522        Procedure for changing level of rate.

704.524        Notification of customers of change in rates and charges.

704.526        Filing of list identifying schedule and affected customers; notice to customers.

704.527        Filing copy of lists with Consumer’s Advocate.

704.528        Violations: Action by Commission.

SYSTEMS FOR DISTRIBUTION OF LIQUEFIED PETROLEUM GAS

704.531        Definitions.

704.5315      Applicability.

704.532        Certificate of public convenience and necessity.

704.533        Duties of operator.

704.534        Annual report.

704.535        Procedure for reporting emergencies.

704.536        Allowable charges; application to Commission to use alternative method; refund of overcharge.

704.5364      Application for approval of margin rates by operator who uses alternative method: Annual submission to Commission; contents.

704.5366      Application for approval of margin rates by operator who uses alternative method: Analysis, determinations and recommendations of Regulatory Operations Staff of Commission; response or request for hearing by operator or interested person; hearing; written order by Commission; actions by operator if margin rates not just and reasonable.

704.537        Complaints and inquiries.

WATER SERVICE AND SEWAGE SERVICE

General Provisions

704.561        Adoption by reference of Uniform System of Accounts for certain water and wastewater utilities.

Resource Planning

704.565        Definitions.

704.5651      “Action plan” defined.

704.5652      “Conservation plan” defined.

704.5653      “Funding plan” defined.

704.5654      “Resource plan” defined.

704.5655      “Utility” defined.

704.5656      “Wastewater treatment” defined.

704.5657      “Water supply and wastewater treatment plan” defined.

704.5658      “Water year” defined.

704.566        Provision of overview of resource plan to certain entities before filing.

704.5661      Resource plan: Summary.

704.5662      Resource plan: General requirements.

704.5663      Resource plan: Identification of inapplicable regulatory provisions.

704.5664      Resource plan: Written testimony.

704.5665      Resource plan: Integrated analysis.

704.5666      Resource plan: Technical appendix.

704.5667      Resource plan: Forecasts; inconsistent water sources; changes in methodology of forecasting.

704.5668      Resource plan: Information concerning entire system of utility for 10 previous years.

704.5669      Resource plan: Assessment of projected reliability of water service; population estimates.

704.567        Conservation plan: General requirements.

704.5671      Conservation plan: Analysis for potential water shortages.

704.5672      Conservation plan: Information about reclaimed water.

704.5673      Water supply and wastewater treatment plan: Options for meeting demand for water and wastewater treatment.

704.5674      Water supply and wastewater treatment plan: Preferred plan.

704.5675      Water supply and wastewater treatment plan: Description of system and separate components; map of facilities; description of deficiencies.

704.5676      Funding plan: Requirement for certain items identified in conservation plan or water supply and wastewater treatment plan.

704.5677      Funding plan: Information concerning costs utility will incur during term of action plan.

704.5678      Funding plan: Options for defraying expenditures.

704.5679      Funding plan: Estimates of financial information; assumptions.

704.568        Action plan: General requirements.

704.5681      Action plan: Budget of planned expenditures.

704.5682      Action plan: Action by Commission.

704.5683      Action plan: Deviation from plan by utility.

704.5684      Action plan: Monitoring; conditions requiring amendment.

704.5685      Amendment to action plan: Provision of overview of proposed amendment to certain entities.

704.5686      Amendment to action plan: Required provisions.

704.5687      Amendment to action plan: Action by Commission.

704.5688      Accrual of expenses to develop resource plan in deferred account; recovery of expenses.

Maintenance of Fire Hydrants

704.569        General requirements; adoption by reference of certain publications.

Utilities That Service Limited Number of Customers: Rates and Service

704.570        Definitions.

704.5705      “Affiliate” defined.

704.5712      “General rate change” defined.

704.5713      “Gross domestic product deflator” defined.

704.5714      “Gross domestic product deflator advice letter” defined.

704.5725      “Regulatory Operations Staff” defined.

704.575        Applicability.

704.581        Annual notification of gross domestic product deflator.

704.582        Range of reasonable returns on equity: Annual filing and service; contents; use in application for adjustments in rates.

704.583        Calculation of amount of allowance for cash working capital.

704.584        Gross domestic product deflator advice letter: Filing and contents; memorandum of recommendations.

704.586        Application for general rate change: Filing, contents and service.

704.587        Gross domestic product deflator advice letter or application for general rate change: Notice to customers; affidavit to Commission.

704.595        Application to recover increased costs of fuel or power: Filing and contents.

704.600        Financing for additions or improvements to plant or providing cash reserve for certain repairs, maintenance or replacements: Surcharge.

704.605        Financing for additions or improvements to plant or providing cash reserve for certain repairs, maintenance or improvements: Written plan.

704.615        Application for general rate change: Action by Commission’s Division of Consumer Complaint Resolution and Regulatory Operations Staff.

704.622        Application for general rate change or request submitted concurrently with assistance of Regulatory Operations Staff.

704.625        Disclosure of transactions.

704.6265      Placement of utility in receivership.

704.627        Inspection; survey of customers; report of findings and recommendations; utility’s response.

704.628        Standards of service.

Utilities That Service Limited Number of Customers: Real Property and Goods

704.6321      “Essential real property and goods” defined.

704.6323      Applicability.

704.6325      Requirements concerning essential real property and goods.

704.6327      Application for sale, transfer or other disposal of essential real property and goods and for sale or transfer of water rights; notice of application and hearing.

Recovery of Certain Costs by Certain Utilities

704.633        Definitions.

704.6331      “Carrying costs” defined.

704.63315    “Cost of service” defined.

704.6332      “Customer class” defined.

704.63325    “Depreciation expense” defined.

704.6333      “Distribution system” defined.

704.63335    “Eligible project” defined.

704.6334      “Eligible project regulatory asset account” and “regulatory asset account” defined.

704.63345    “Large utility” defined.

704.6335      “Production system” defined.

704.63355    “Resource plan” defined.

704.6336      “System improvement rate” defined.

704.63365    “System improvement rate revenue requirement” defined.

704.6337      “Transmission system” defined.

704.63375    “Utility” defined.

704.6338      “Wastewater system” defined.

704.63385    Request for recovery of certain amounts and costs; requirements; concurrent submission with request for assistance of Regulatory Operations Staff; approval; alternative rate design.

704.6339      Request or application for designation as eligible project; requirements; action by Commission.

704.63395    Notice of request or application for designation as eligible project.

704.634        Commission to provide approved budget estimate.

704.6341      Calculation of eligible project regulatory asset account.

704.63415    Costs must be accounted for and readily identifiable.

704.6342      Calculation of carrying costs, annual system improvement rate revenue requirement, authorized pretax rate of return and weighted average return.

704.63425    System improvement rate: Filing deadline for application; requirements; recalculation and modification.

704.6343      System improvement rate: Approval of application; authority to limit system improvement rate revenue requirement; deadline.

704.63435    System improvement rate: Annual application for continuation or adjustment; requirements; deadline for approval.

704.6344      Applicability of certain provisions.

704.63445    Test year data for unadjusted water consumption; cost of service study.

704.6345      Considerations of Commission in establishing requirements for revenue generated from certain customer classes.

704.63455    Alternative methods for analyzing results of cost of service study.

ACCOUNTING PRACTICES AND RATE MAKING FOR CERTAIN UTILITIES

Uniform System of Accounts

704.640        Natural gas companies.

704.645        Telephone companies.

704.650        Electric power companies.

Adjustment of Rates in Conformity With Federal Tax Reform

704.6502      Definitions.

704.6504      “Allowance for funds used during construction” defined.

704.6506      “Average rate assumption method” defined.

704.6508      “Contributions” defined.

704.651        “Excess tax reserve” defined.

704.6512      “Income tax gross up” defined.

704.6514      “P.S.C.N. Account 107” defined.

704.6516      “Reverse” defined.

704.6518      “Reverse South Georgia method” defined.

704.6522      “Vintage” and “vintage group” defined.

704.6524      Provisions obtainable from Internal Revenue Service.

704.6526      Rules for rate making.

704.6528      Determination of rate base.

704.653        Calculation of allowance for funds used during construction; inclusion of deferred income tax as component of rate base.

704.6532      Contributions to corporate capital.

704.6534      Normalization of timing differences.

704.6536      Net operating loss carrybacks and carryovers.

704.6538      Capitalization and inclusion in inventory costs of certain expenses.

704.6542      Alternative minimum tax.

704.6544      Environmental tax.

704.6546      Use of separate-entity method by utility members of consolidated group.

Rate Design for Certain Electric Utilities

704.655        Applicability.

704.660        Consideration of marginal cost of service in determining class revenue requirements.

704.662        Rate design based on marginal cost of service.

704.665        Special rate for interruptible service.

Rate Design for Certain Natural Gas Utilities

704.6671      Definitions.

704.6673      Applicability.

704.6675      Considerations for determination of rates for classes of customers.

704.6677      Rates to be designed to conserve energy.

704.6679      Filing requirements for proceeding to establish or change rates.

Rates for Interruptible Service

704.673        Establishment of rate.

704.675        Schedule; annual charges.

704.680        Recovery of deficiency.

ADDITIONAL REGULATIONS CONCERNING CERTAIN TELECOMMUNICATION SERVICES

General Requirements and Exemptions for Certain Providers and Services

704.6802      Designation of companies as providers of last resort.

704.68026    Certain exemptions for provider of commercial mobile radio services.

704.68028    Confirmation of certain orders for change of telecommunication service.

Performance Standards and Penalties to Encourage Competition and Discourage Discrimination

704.6803      “Nonrural incumbent local exchange carrier” defined.

704.680301     Applicability; purpose.

704.680302     Authority of certain providers to file petition for exemption from requirements relating to performance standards and penalties.

704.680303     Plans for reporting and auditing performance measures and establishing performance incentives: Request for approval; hearing; issuance of order; period of validity; request for modification.

704.680305     Plan for measuring performance.

704.680307     Requirements for performance measurements; exemption from performance measurements and reporting requirements.

704.680309     Plan for establishing reporting requirements; monthly report of performance measurements; confidential information; access to data.

704.680311     Plan establishing auditing requirements: Request for approval; minimum requirements.

704.680313     Plan establishing performance incentives.

704.680315     Plan for system of penalties.

Complaints to Resolve Disputes Between Telecommunication Providers

704.68035    Definitions.

704.680351     Applicability.

704.680353     Authority to file complaint; certification required.

704.680355     Contents and filing of complaint; protective agreement regarding discovery.

704.680357     Answer.

704.680359     Mediation.

704.680361     Discovery; service.

704.680363     Hearing; final decision of Commission.

704.680365     Request for interim relief.

Fund to Maintain the Availability of Telephone Service

704.6804      Definitions.

704.6804105 “County telephone line or system” defined.

704.6804107 “Eligibility Administrator” defined.

704.6804109 “Eligibility responsibility party” defined.

704.680411  “Eligible library” defined.

 

 

704.680412  “Eligible school” defined.

704.680413  “Eligible telecommunications carrier” defined.

704.680414  “Eligible telecommunications service” defined.

704.6804143 “Eligible voice telephony services” defined.

704.6804147 “Fund Administrator” defined.

704.680415  “Fund to maintain the availability of telephone service” defined.

704.6804153 “High-cost area” defined.

704.6804157 “Insular area” defined.

704.680416  “Lifeline” defined.

704.6804166 “National Lifeline Eligibility Verifier” defined.

704.680417  “Provider of health care” defined.

704.6804175 “Provider of telecommunication services” defined.

704.680418  “Qualifying low-income subscriber” defined.

704.680419  “Rural area” defined.

704.680421  “Service area” defined.

704.6804213 “Small-scale provider of last resort” defined.

704.6804215 “Toll blocking service” defined.

704.680423  “Toll limitation service” defined.

704.6804235 “Tribal Link Up” defined.

704.680424  “Universal service” defined.

704.68043    Purpose of fund.

704.680435     Selection of and contract with Eligibility Administrator and Fund Administrator; termination of Eligibility Administrator.

704.680439     Duties of Eligibility Administrator.

704.68044    Duties of Fund Administrator.

704.68046    General eligibility requirements to qualify for disbursement from fund.

704.680461     Designation as eligible telecommunications carrier: Requirements; exception; issuance of order by Commission approving or denying application.

704.6804615 Designation as eligible telecommunications carrier: Provision of Lifeline services to qualifying low-income subscribers.

704.680463     Designation as eligible telecommunications carrier: Establishment of service areas.

704.680464     Designation as eligible telecommunications carrier: Eligibility to receive certain reimbursements.

704.680465     Designation as eligible telecommunications carrier: Affirmation to be filed with annual report.

704.680466     Designation as eligible telecommunications carrier: Application for relinquishment in certain service areas.

704.680467     Designation as eligible telecommunications carrier: Revocation.

704.680468     Application from eligible school or library for discounted rates for intrastate telecommunication service.

704.680469     Conditions for provision of discounted rates for eligible school or library.

704.68047    Application for disbursement from fund to provider of discounted rates for eligible school or library.

704.680471     Application from provider of health care for discounted rates or discounted service.

704.680472     Conditions for provision of discounted rates or discounted service for public or private nonprofit provider of health care serving persons in rural area.

704.680473     Application for disbursement from fund to provider of discounted rates or discounted service for provider of health care.

704.680474     Criteria for eligibility as qualifying low-income subscriber; documentation of qualification; duties of eligibility responsibility party; determination of eligibility and enrollment of subscriber if National Lifeline Eligibility Verifier is implemented in this State.

704.6804742 Maintenance and provision of lists by Department of Health and Human Services of persons eligible to receive benefits from certain federal programs; exception.

704.6804743 Recertification of continued eligibility as qualifying low-income subscriber.

704.6804745 Certification of compliance with procedures for Lifeline and Tribal Link Up programs.

704.680475     Offering of Lifeline and Tribal Link Up services by eligible telecommunications carrier.

704.6804755 Offering of toll limitation service by eligible telecommunications carrier.

704.680476     Termination of Lifeline service; de-enrollment of subscriber; enrollment of eligible subscriber with unpaid toll charges into Lifeline or Tribal Link Up program; waiver of requirements; notice to Eligibility Administrator; effect of inconsistent eligibility determinations.

704.680477     Charging of service deposit for initiation of Lifeline service.

704.680478     Request for disbursement from fund to eligible telecommunications carrier for reimbursement of costs of providing discount in rate for Lifeline service.

704.680479     Information to be filed with administrator of federal universal service support by eligible telecommunications carrier.

704.68048    Small-scale provider of last resort: Qualification for disbursement from fund; request for money from fund; disputes regarding qualification; audit.

704.680481     Small-scale provider of last resort: Determination of qualification for and amount of annual disbursement from fund.

704.680482     Small-scale provider of last resort: Petition for waiver from requirement to file new request for money from fund after 5 years.

704.680483     Small-scale provider of last resort: Requirements for adjustment application in amount of disbursement from fund.

704.6805      Disbursement from fund to competitive supplier that is provider of last resort.

704.68051    Request by competitive supplier that is provider of last resort for proceedings to determine whether funding is required to ensure that rates charged do not adversely affect universal service.

704.68054    Assessment for support of fund; quarterly remittance to Fund Administrator.

704.68056    Procedure for disbursement from fund; report of Fund Administrator regarding assessment for fund; deviation from or waiver of deadlines for filings.

Classification and Provision of Services of Certain Small-Scale Providers of Last Resort

704.6806      Applicability.

704.68062    Request for classification or reclassification of service.

704.68064    Time for action upon request and for filing of protest.

704.68066    Maintenance of separate accounting records for competitive and deregulated services.

704.68068    Classification of service as discretionary.

704.6807      Classification of service as competitive.

704.68072    Classification of service as discretionary or competitive based on classification of comparable service.

704.68074    Classification of service as deregulated.

704.68076    Approval of rates, terms and conditions for discretionary service.

Additional Requirements for Certain Providers and Services

704.68085    Geographic averaging of rates.

704.6809      Provision of interconnection and access to certificated telecommunication providers.

704.68092    Availability of components of essential service to certificated telecommunication providers.

704.68094    Assignment of numbers, portability and administration.

704.68096    Directory listings.

Inside Wiring for Telephone Equipment

704.681        Definitions.

704.6813      Applicability.

704.6815      Services required for simple inside wiring.

704.682        Rates for services.

704.6825      Billing for services.

704.683        Location of point of demarcation.

Shared Tenant Service

704.689        Definitions.

704.68903    “Contiguous property” defined.

704.68906    “End user” defined.

704.6891      “Point of demarcation” defined.

704.68913    “Provider” defined.

704.68916    “Shared tenant service” defined.

704.6892      “Transient apartment” defined.

704.68922    Applicability.

704.68923    General requirements for provision of shared tenant service.

704.68926    Subscription to services; facilities.

704.6893      Responsibility for service; response to service calls.

704.68933    Telephone directory listings; access to other services.

704.68936    Written acknowledgment from subscriber: Contents; retention.

704.6894      Routing of local calls; resale of intrastate long distance service.

704.68943    Requirements for switches; private line service; hard wiring.

704.68946    Extensions of service.

704.6895      Provision of copies of regulations and tariff to prospective providers.

704.68953    Responsibilities of provider.

704.68956    Compliance with regulations and conditions of service applicable to business customers.

704.6896      Responsibilities of local exchange company.

704.68963    Charges for special constructions.

704.68966    Rates for shared tenant service; applicability.

704.6897      Use of inside wiring; provision of alternate pathways.

Relief of Incumbent Local Exchange Carriers From Obligations of Providers of Last Resort

704.711        Definitions.

704.7112      Request for per se relief from obligations in regard to certain property: Authorization.

704.7114      Request for per se relief from obligations in regard to certain property: Procedure; notice; protest; when relief is deemed granted.

704.7116      Request for waiver of obligations in regard to certain property: Authorization.

704.7118      Request for waiver of obligations in regard to certain property: Procedure; petition.

704.712        Scheduling of waiver proceeding and issuance of order; order granting petition for waiver or per se relief.

704.7122      Excuse from obligations does not affect obligations under federal law or regulation.

704.7124      Notification by owner or developer regarding certain facilities, equipment and payment information.

704.7126      Discontinuation of voice service provided after incumbent local exchange carrier is relieved of obligations.

704.7128      Action by Commission upon receipt of notice or evidence of possible discontinuation of voice service.

704.713        Reinstatement proceeding: Duties of Commission.

704.7132      Payment of certain compensation to person discontinuing voice service or to incumbent local exchange carrier.

704.7134      Request by incumbent local exchange carrier for more time to construct, retrofit or install necessary facilities and equipment.

Competitive Suppliers

704.741        Application by small-scale provider of last resort to be regulated as competitive supplier.

704.743        Discontinuance of basic network service by competitive supplier that is provider of last resort: Application; notification.

704.744        Discontinuance of basic network service by competitive supplier that is provider of last resort: Scope and timing.

Discretionary and Competitive Services

704.7472      Application for certificate of public convenience and necessity filed by competitive supplier: Contents; applicable provisions.

704.7473      Application for certificate of public convenience and necessity filed by competitive supplier: Protests.

704.7475      Discretionary services: Schedule of rates, charges, terms and conditions.

704.7477      Discretionary services: Establishment or change of schedule of minimum and maximum rates or terms and conditions; protests; changes within approved range.

704.7483      Annual reports of certain financial information and information regarding provision of services.

704.7485      Discontinuance of single offering or feature of service.

704.7487      Discontinuance of total service to geographic area.

704.74935    Applicability of certain provisions.

704.7494      Change of name, address or telephone number of telecommunication provider; change of address of Internet website of competitive supplier.

Operator Services for Prison Inmate Phones

704.7499      Adoption by reference of standards of Federal Communications Commission.

Adjustment of Intrastate Charges and Rates by Telephone Companies

704.7501      Definitions.

704.7505      “Exchange” defined.

704.7509      “Interexchange carrier’s charges for access” defined.

704.7513      “Intrastate line for access” defined.

704.7519      “Rate per unit” defined.

704.7521      “Subscriber” defined.

704.7523      “Subscriber’s charges for access” defined.

704.7527      “Unit” defined.

704.7529      “Universal service” defined.

704.75295    Competitive suppliers: Provisions inapplicable; filing and approval of letter of advice.

704.7531      General rate application not precluded by filing.

704.7533      Application to establish or adjust charges or rates.

704.7535      Information to be indexed and to accompany application; request for additional information.

704.7537      Recorded data and adjustments.

 

 

704.7539      Additional data.

704.7541      Data supporting proposed rates; working papers; material available for verification.

704.7543      Required statements and schedules.

704.7545      Statement A.

704.7547      Statement B.

704.7549      Schedule B-1.

704.7551      Schedule B-2.

704.7553      Schedule B-3.

704.7555      Statement C.

704.7557      Statement D.

704.7559      Statement E.

704.7561      Statement F.

704.7563      Statement that material constitutes complete case; burden of proof.

704.7565      Provision of documents to Commission; service upon Consumer’s Advocate.

704.7567      Service of copies of application excluding working papers.

704.7569      Notice to subscribers.

704.7571      Procedure for filing tariffs.

704.7573      Time for filing application for adjustment.

704.7575      Charges for subscribers’ access.

704.7591      Variances.

Payphone Service

704.75911    Definitions.

704.75912    “Payphone” defined.

704.75913    “Payphone service” defined.

704.75914    “Public telephone” defined.

704.75915    “Semipublic telephone” defined.

704.75916    Access to service without charge.

704.75917    Display of information at or near payphone.

704.75918    Correction of failures in market for service.

Deregulation of Service Provided by Local Exchange Company

704.7592      “Long-run incremental costs” defined.

704.75925    Applicability.

704.7593      Application for approval to deregulate service.

704.75935    Time for action upon application.

704.7594      Maintenance of separate accounting records.

704.7595      Factors for determining whether service is discretionary or competitive.

704.7596      Factors for determining whether flexibility, exemption or total deregulation is in public interest.

704.7597      Information to be filed with annual report.

704.7598      Rate charged for service exempted from tariff.

704.75983    Maintenance of quality of deregulated service.

704.7599      Adjustment of extent of deregulation.

Determination of Wholesale Rates by Incumbent Local Exchange Carriers

704.75991    Definitions.

704.759915  “All other services” defined.

704.75992    “Avoided cost study” defined.

704.759925  “Avoided retail costs” defined.

704.75993    “Incumbent local exchange carrier” defined.

704.759935  “Wholesale discount factor” defined.

704.75994    “Wholesale rate” defined.

704.759945     Determination of wholesale discount factors.

704.75995    Formula for determining wholesale rate.

704.759955     Conduct of avoided cost studies.

704.75996    Requirements for avoided cost study.

SALE OF GEOTHERMAL ENERGY

704.760        Purpose.

704.762        Applicability.

704.764        Definitions.

704.766        Operating permit required.

 

 

704.768        Application for operating permit.

704.770        Description of service area.

704.772        Description of operating system.

704.774        Description of geothermal resource.

704.776        Confidentiality of exploration and subsurface information.

704.778        Statement of economic feasibility.

704.780        Additional information to be submitted with application.

704.782        Addendum to contract between utility and customer.

PROVIDERS OF COMMERCIAL MOBILE RADIO SERVICE

704.786        “Commercial mobile radio service” defined.

704.7862      Information to be filed with Commission.

704.7864      Requirement to file information before initiating service; notification of changes.

COMPETITIVE NATURAL GAS SERVICE

Distribution Companies and Affiliates

704.789        Definitions.

704.7891      “Affiliate” defined.

704.7892      “Customer” defined.

704.7893      “Distribution company” defined.

704.7894      “Noncompetitive service” defined.

704.7895      “Potentially competitive service” defined.

704.7896      Applicability.

704.7897      Provision of potentially competitive service or discretionary service.

704.7898      Business relationship between distribution company and affiliate: Requirements; restrictions.

704.7899      Distribution company: Designation of officer to evaluate and certify compliance with certain provisions.

704.7901      Distribution company: Standards of conduct when dealing with affiliate.

704.7902      Distribution company: Conditions for provision of information concerning specific customers to affiliate and nonaffiliated entity.

704.7903      Distribution company: Conditions for provision of general information to affiliate.

704.7904      Distribution company: Restriction on providing list of alternative sellers.

704.7905      Distribution company: Restriction on offering or providing advice or assistance to customer concerning affiliate or other service provider.

704.7906      Distribution company: Maintenance of certain records; availability for review by third parties.

704.7907      Distribution company: Duties related to provision of services to affiliate or nonaffiliated entity.

704.7908      Provision of discount, rebate or other waiver of charge or fee to affiliate by distribution company: Notice; contents.

704.7909      Provision of discount, rebate or other waiver of charge or fee to affiliate by distribution company: Requirements for maintenance of records.

704.791        Audit of distribution company with affiliate: Requirements.

704.7911      Audit of distribution company with affiliate: Access to certain records.

704.7912      Requirements for pricing goods or services transferred by distribution company or affiliate.

704.7913      Affiliate: Standards of conduct.

704.7914      Affiliate: Conditions for offering goods or services.

704.7915      Violations: Generally.

704.7916      Violations: Procedures for processing complaints.

704.7917      Violations: Investigation of complaint; notice and hearing.

704.7918      Enforcement of provisions or order of Commission.

704.7919      Penalties: Generally.

704.792        Penalties: Repeated violations.

Potentially Competitive Services

704.793        Definitions.

704.7931      “Effective competition” defined.

704.7933      “Person” defined.

704.7935      “Potentially competitive service” defined.

704.7937      Applicability.

704.7939      Requirements for classification of natural gas service as potentially competitive service.

704.794        Classification of natural gas service as potentially competitive service limited to certain boundaries.

704.7941      Natural gas service is classified as potentially competitive service under certain circumstances.

704.7943      Natural gas service is noncompetitive service under certain circumstances.

704.7945      Establishment of alternative plan of regulation.

704.7947      Determination of effective competition in market for natural gas service.

Alternative Sellers

704.79501    Definitions.

704.79503    “Affiliate” defined.

704.79505    “Alternative seller” defined.

704.79507    “Discretionary service” defined.

704.79509    “End-use customer” defined.

704.79511    “Generating customer” defined.

704.79513    “Industrial customer” defined.

704.79515    “Large commercial customer” defined.

704.79517    “Local distribution company” defined.

704.79519    “Potentially competitive service” defined.

704.79521    “Residential and small commercial customer” defined.

704.79523    Application for license of certain alternative sellers of discretionary services.

704.79525    Applicability of provisions.

704.79527    Application for license as alternative seller of potentially competitive service.

704.79529    Bond rating or security deposit requirement; amount of security deposit.

704.79531    Acceptable securities: Amounts; adjustments.

704.79533    Documentation required before requesting payment or providing service.

704.79535    Contract with customer conditioned on compliance with provisions.

704.79537    Compliance with certain rules, procedures and obligations.

704.79539    Compliance with generally accepted technical protocols and regulations.

704.79541    Certain changes in application information to be reported to Commission; prior authorization required for change of business name.

704.79543    Grounds for denial, revocation, suspension or limitation of license; notification; hearing; determination of Commission; summary suspension; reapplication for license.

704.79545    Application signed by authorized officer of applicant attesting to truth of information contained therein.

Cost Recovery for Replacement of Existing Natural Gas Pipelines and Related Infrastructure

704.796        Definitions.

704.7961      “Early-vintage plastic pipe” defined.

704.7962      “Early-vintage steel pipe” defined.

704.7963      “Gas infrastructure replacement” defined.

704.7964      “Gas infrastructure replacement advance application” and “advance application” defined.

704.7965      “Gas infrastructure replacement mechanism” and “replacement mechanism” defined.

704.7966      “Gas infrastructure replacement project” and “replacement project” defined.

704.7967      “Gas infrastructure replacement project revenue requirement” and “revenue requirement” defined.

704.7968      “Gas infrastructure replacement rate” and “replacement rate” defined.

704.7969      “Gas infrastructure replacement rate application” and “rate application” defined.

704.797        “Gas infrastructure replacement regulatory asset account” and “regulatory asset account” defined.

704.7971      “Master meter system” defined.

704.7975      Applicability.

704.7976      Advance application: Dates on which deemed filed or denied.

704.7977      Advance application: Required provisions.

704.7978      Advance application: Calculation of regulatory asset account.

704.7979      Advance application: Costs proposed must be accounted for and readily identifiable.

704.798        Rate application: General provisions.

704.7981      Replacement rate: Effective date.

704.7982      Rate application: Statement regarding deviations from replacement projects approved in advance application.

704.7983      Request for waiver of requirement to file rate case.

704.7984      Requirements for seeking determination of prudency.

704.7985      Collection of replacement rate from customers; negotiated rate customers; exemptions.

ENERGY UTILITIES: AUTHORIZATION OF MERGERS, ACQUISITIONS OR CHANGES IN CONTROL

704.79971    Definitions.

704.79973    “Applicant” defined.

704.79975    “Energy utility” defined.

704.79977    “Parties to the proposed transaction” defined.

704.79979    “Transaction” defined.

704.79981    Requirement to submit application.

704.79983    Application for authorization of proposed transaction: General contents.

704.79985    Application for authorization of proposed transaction: Inclusion of information on effect on costs and rates.

704.79987    Application for authorization of proposed transaction: Inclusion of information on effect on competition.

704.79989    Application for authorization of proposed transaction: Inclusion of information on facilities.

704.79991    Order from Commission for changes or additions.

CONSERVATION OF ENERGY IN RESIDENCES

704.800        Applicability.

704.802        Definitions.

704.803        Adoption by reference of certain publications.

704.804        Announcements to eligible customers: Distribution; contents.

704.806        Announcements to eligible customers: List of measures to conserve energy.

704.808        Announcements to eligible customers: List of practices to conserve energy.

704.810        Announcements to eligible customers: Estimates of savings in cost of energy.

704.812        Announcements to eligible customers: Limitation on advertisements.

704.814        Inspections by utility; exceptions.

704.816        Time for inspection; quarterly report.

704.818        Qualifications of inspectors.

704.820        Proposed methodology for performing inspections.

704.822        Alternatives to actual measurements and inspection.

704.824        Written assessment of appropriate practices.

704.826        Measures for conservation: Determination of whether recommendation is appropriate.

704.828        Measures for conservation: Suggestion; evaluation upon customer’s request.

704.830        Inspection if primary source of energy not sold by utility.

704.832        Offer to supply certain equipment and to explain adjustment of thermostats to customer; restriction on supplying or installing material or equipment.

704.834        Results of inspection; duties of inspector.

704.836        Retention of data and results.

704.838        Provision of information and assistance concerning bids, goods and services.

704.856        Supply and installation of material or equipment by utility: General requirements.

704.858        Supply and installation of material or equipment by utility: Duties of utility.

704.860        Prohibited discrimination.

704.862        Determination of levels of R-values for insulation of ceilings and appropriateness of thermal windows.

704.870        Annual reports.

704.872        Accounting for amounts received or expended.

704.874        Crediting of amounts received as reimbursement for expenses.

704.876        Operating expenses of utility; recovery of expenses.

COGENERATION AND SMALL POWER PRODUCTION

704.8771      “Small power production facility” defined.

704.8773      Applicability.

704.8775      Adoption by reference of certain federal regulations.

704.8777      Proposed contract for purchase of capacity or energy: Contents; requirement for bond or other security; application for approval of contract.

704.8779      Proposed contract for purchase of capacity or energy: Consistency with plan to increase supply of or decrease demand for electricity.

704.8781      Submission of information.

704.8783      Requirements for reporting data: Short-term avoided costs; analyses and calculations for determining proposed rates.

704.8785      Requirements for reporting data: Information relating to design, operations and safety; efficiency of generation of power.

704.8787      Interconnection costs.

704.8789      System emergency.

704.8791      Contracts and short-term rates for purchase of power; rates for sales.

704.8793      Resolution of disputes.

ELECTRIC SERVICE

Renewable Energy Zones

704.880        Designation; request for revision.

Master Meters

704.8805      Definitions.

704.8806      Applicability.

704.8807      Restricted use.

Net Metering Systems

704.881        Definitions.

704.8811      “Customer-generator” defined.

704.8812      “Interconnection” defined.

704.8813      “Metering” defined.

704.8814      “Net metering” defined.

704.8815      “Net metering system” defined.

704.8816      “Solar Energy Program” defined.

704.8817      “Third-party system owner or operator” defined.

704.8818      “Waterpower Demonstration Program” defined.

704.8819      “Wind Demonstration Program” defined.

704.882        Net metering tariffs: Application for approval; contents.

704.8821      Standard net metering contracts: Creation; provision to customers; negotiation of alternative arrangements.

704.8822      Dissemination of certain information and forms to customers.

704.8823      Duties of utility upon receipt of application for net metering and upon installation of net metering system; provision of certain contact information.

704.8824      Designation by customer-generator of third-party system owner or operator to work with utility.

704.8825      Limitation on relationship or agreement between customer-generator and third-party system owner or operator.

Portfolio Standard

704.8831      Definitions.

704.8833      “Biogas” defined.

704.8835      “Biomass” defined.

704.8837      “Bureau of Consumer Protection” defined.

704.8839      “Compliance year” defined.

704.88395    “Energy efficiency contract” defined.

704.88411    “Long-term portfolio energy credits contract” defined.

704.88412    “Long-term renewable energy contract” defined.

704.8842      “New renewable energy project” defined.

704.8843      “Nonutility provider” defined.

704.8845      “Portfolio standard” defined.

704.8849      “Provider of electric service” and “provider” defined.

704.8851      “Regulatory Operations Staff” defined.

704.8853      “Renewable energy” defined.

704.8855      “Renewable energy contract” defined.

704.8857      “Renewable energy system” defined.

704.8859      “Retail customer” defined.

704.886        “Short-term portfolio energy credits contract” defined.

704.8862      “Short-term renewable energy contract” defined.

704.8863      “Solar thermal system” defined.

704.8865      “SRCC” defined.

704.8866      “Temporary renewable energy development charge” and “TRED charge” defined.

704.88663    “Temporary renewable energy development program” and “TRED program” defined.

704.88665    “Temporary renewable energy development trust” and “TRED trust” defined.

704.8867      “Utility provider” defined.

704.8869      Adoption by reference of certain ratings, certification standards and performance estimates.

704.8871      Compliance with portfolio standard.

704.8872      Transfer of portfolio energy credits to aggregator of portfolio energy credits.

704.8873      Authority of Commission to require provision of certain information.

704.8875      Calculations concerning compliance with portfolio standard: Eligibility of kilowatt-hours.

704.8877      Calculations concerning compliance with portfolio standard: Submission of information; estimates; effect of equaling or exceeding estimates.

704.8879      Annual reports.

704.8881      Determination of whether provider complied with portfolio standard; carry forward of excess kilowatt-hours; notice of noncompliance; hearing; resolution of deficiency; administrative fines and other administrative action.

704.8883      Petition for exemption from administrative fine or other administrative action.

704.8885      Long-term portfolio energy credits contracts, long-term renewable energy contracts and energy efficiency contracts: Review by Commission; criteria for approval.

704.8887      Long-term portfolio energy credits contracts, long-term renewable energy contracts and energy efficiency contracts: Determination of whether price for electricity is reasonable.

704.88875    Long-term portfolio energy credits contracts, long-term renewable energy contracts and energy efficiency contracts: Mitigation for impact of imputed debt on capital structure of utility provider.

704.88877    Short-term portfolio energy credits contracts and short-term renewable energy contracts: Evaluation by Commission.

704.8888      Renewable energy systems and energy efficiency measures: Establishment of rebate program for customers.

704.8889      Renewable energy systems: Metering and verification of electric output.

704.8891      Renewable energy systems: Use of fossil fuel.

704.8893      Renewable energy systems: Use of solar thermal systems.

704.8894      Temporary renewable energy development program: Authority of Commission; factors for consideration.

704.8895      Temporary renewable energy development program: Orders of Commission.

704.8896      Temporary renewable energy development program: Designation of new renewable energy projects eligible for participation.

704.8897      Temporary renewable energy development program: Duties of utility provider regarding TRED trust; duties and rights of TRED trust.

704.8898      Temporary renewable energy development program: Powers and duties of utility provider regarding TRED charge; determination of TRED charge.

704.8899      Temporary renewable energy development program: Closure to new renewable energy projects; termination of participation by all new renewable energy projects.

System of Portfolio Energy Credits

704.8901      Definitions.

704.8903      “Administrator” defined.

704.8905      “Designated representative” defined.

704.8907      “Net metering system” defined.

704.8908      “Portfolio energy credit” defined.

704.8909      “Provider of electric service” defined.

704.891        “Regulatory Operations Staff” defined.

704.8911      “Renewable energy” defined.

704.8915      “Renewable energy system” defined.

704.8917      “Utility provider” defined.

704.8919      Use of credits to comply with portfolio standard.

704.8921      Application for participation in system.

704.8923      Quarterly reports by participants in system and utility providers.

704.8925      Awarding of credits generated pursuant to certain contracts made before December 8, 2003.

704.8927      Measurement of applicable energy; certification and allocation of credits.

704.8929      Identification of credits; annual statement of credits.

704.8931      Maintenance of certain information on website.

704.8932      Sale of credits by utility provider: Application; notice; approval; exemption.

704.8933      Transfer of credits; monthly statement of account.

704.8935      Retirement of credits.

704.8937      Responsibilities of utility provider; adoption by reference and revision of certain federal regulations.

704.8938      Participation in alternate system by certain categories of portfolio energy systems: Authority of Regulatory Operations Staff to file petition; order by Commission; compliance with requirements set forth in order.

Capacity Allocation for New Commercial and Industrial Businesses

704.895        Definitions.

704.8951      “Base tariff energy rate” defined.

704.8952      “Electric utility” defined.

704.8953      “Participant” defined.

704.8954      “Program” defined.

704.8955      Discounted electric rates to be charged.

704.8956      Allocation of capacity to new customers.

704.8957      Duties of electric utility that provides discounted electric rates.

704.8958      Requirements for annual report to be submitted by electric utility.

Resource Planning

704.9005      Definitions: Terms used in regulation or resource plan.

704.9006      “Action plan” defined.

704.9007      “Affiliate” defined.

704.9015      “Analysis of sensitivity” defined.

704.9023      “Capacity” defined.

704.9024      “Coal-fired electric generating capacity” defined.

704.90243    “Coal-fired electric generating plant” defined.

704.90247    “Coal-fired electric generating unit” defined.

704.9025      “Cogeneration” defined.

704.904        “Conservation” defined.

704.9055      “Demand” defined.

704.9057      “Demand side plan” defined.

704.9058      “Distributed generation” defined.

704.90583    “Distributed resources” defined.

704.90585    “Distributed resources plan” defined.

704.9059      “Electric utility that primarily serves densely populated counties” defined.

704.90593    “Eliminate” and “elimination” defined.

704.90595    “Emissions reduction and capacity replacement action plan” defined.

704.90597    “Emissions reduction and capacity replacement plan” defined.

704.906        “End-use” defined.

704.90605    “Energy efficiency” defined.

704.9061      “Energy supply plan” defined.

704.9063      “Environmental costs and economic benefits to the State” defined.

704.9067      “Financial commitment” defined.

704.9069      “Financial plan” defined.

704.9075      “Forecast of base growth” defined.

704.9085      “Forecast of high growth” defined.

704.9095      “Forecast of low growth” defined.

704.9099      “Fuel procurement plan” defined.

704.9101      “Grid needs assessment” defined.

704.9102      “Hosting capacity analysis” defined.

704.9103      “Independent power producer” defined.

704.9107      “Intermittent energy resources” defined.

704.9109      “Locational net benefit analysis” defined.

704.9111      “Long-term avoided cost” defined.

704.9113      “Long-term purchased power obligation” defined.

704.9115      “Losses” defined.

704.9133      “Non-wires alternative” defined.

704.9135      “Normalized” defined.

704.9147      “Planning capacity” defined.

704.915        “Pooling of power” defined.

704.9152      “Preferred plan” defined.

704.9153      “Purchased power procurement plan” defined.

704.9154      “Renewable energy” defined.

704.91541    “Renewable energy facility” defined.

704.91542    “Renewable energy zone transmission action plan” defined.

704.91543    “Renewable energy zone transmission plan” defined.

704.91544    “Renewable energy zones” defined.

704.9156      “Resource plan” defined.

704.91565    “Retire” and “retirement” defined.

704.9157      “Risk management strategy” defined.

704.9161      “Staff” defined.

704.9163      “Substantially accurate data” defined.

704.9166      “Supply plan” defined.

704.9173      “Year” defined.

704.9212      Goals for energy savings resulting from energy efficiency programs; modification of goal.

704.9215      Summary of resource plan.

704.922        Technical appendix to resource plan.

704.9225      Forecasts of peak demand and annual energy consumption: General requirements.

704.923        Periods to be covered by resource plan.

704.9235      Formats for information included in resource plan.

704.9237      Requirements and contents of distributed resources plan; identification and justification of certain changes of methodology; public posting of update to hosting capacity analysis.

704.9238      Deviation from and amendment of distributed resources plan.

704.9239      Update of distributed resources plan: Filing; requirements.

704.9241      Update of distributed resources plan: Action by Commission.

704.9245      Normalizing forecast values of peak demand and energy consumption to account for normal weather conditions.

704.925        Resource plan: Inclusion, contents and evaluation of forecasts of energy consumption and peak demand; consideration of certain impacts; identification of change in methodology of forecasting.

704.9281      Resource plan: Contents of data relating to peak demand and energy consumption.

704.9321      Resource plan: Reliability of assumptions, forecasts, conclusions and information; adjustments to forecasts; maps of covered areas; supportive testimony.

704.934        Preparation, contents and submission of demand side plan; annual analyses regarding programs for energy efficiency and conservation.

704.9355      Analyses of options for supply.

704.9357      Analysis of net economic benefits to State.

704.9359      Determination of environmental costs to State.

704.9361      Elimination or modification of environmental factors, emission rates and environmental costs.

704.937        Inclusion in supply plan of alternative plans and list of options for supply of capacity and electric energy; criteria for selection of options; comparison of and requirements for alternative plans; identification of preferred plan.

704.9378      Supply plan: Time-line graphs for proposed resources for supply.

704.9385      Supply plan: Contents; tables; transmission plan; information regarding purchase of power; maps; conceptual renewable energy zone transmission plan; list of assets.

704.9395      Resource plan: Information on financial and economic characteristics of planned facilities.

704.9401      Financial information and assumptions used to develop financial plan.

704.944        Supply plan: Discussion of alternative strategies.

704.945        Resource plan: Inclusion of certain tables and graphs.

704.9453      Inclusion of emissions reduction and capacity replacement plan in supply plan of electric utility that primarily serves densely populated counties; contents.

704.9457      Acceptance or modification of emissions reduction and capacity replacement plan.

704.9465      Integrated analysis to establish priorities among options; consideration of results as basis for preferred plan.

704.9475      Analysis of sensitivity for major assumptions and estimates used in resource plan.

704.948        Analysis of decisions.

704.9482      Requirements for energy supply plan, purchased power procurement plan, fuel procurement plan and risk management strategy; consistency with action plan; annual filings.

704.9484      Critical facility: Procedure and purpose for designation; financial incentives.

704.9486      Performance-based methodology for recovery of costs for natural gas used as fuel for generation: Proposal for establishment; report of results.

704.9489      Requirements for action plan.

704.94893    Requirements for emissions reduction and capacity replacement action plan.

704.94895    Renewable energy zone transmission action plan: Acceptance of action items.

704.9492      Rates for long-term avoided cost: Inclusion of certain information in resource plan; estimation; specification of proposed limits concerning availability.

704.9494      Approval or modification of action plan; determination that elements of energy supply plan and distributed resources plan are prudent; recovery of costs to carry out approved plans.

704.9496      Estimated rates for long-term avoided cost: General requirements; action by Commission; solicitation of proposals; report.

704.9497      Approval or modification of emissions reduction and capacity replacement action plan; consequences if utility provides untrue or false information.

704.9498      Report on progress of action plan: Filing; service; contents; form; hearing.

704.9503      Monitoring and amendment of action plan.

704.95035    Monitoring and amendment of emissions reduction and capacity replacement action plan.

704.9504      Deviation from and amendment of energy supply plan.

704.9506      Update of energy supply plan: Filing; requirements.

704.9508      Update of energy supply plan: Action by Commission.

704.9512      Submission to Commission of certain purchased power obligations; disclosure of certain affiliate relationships.

704.9514      Preapproval of certain fuel and purchased power agreements.

704.9516      Contents of amendment to action plan.

704.9517      Contents of amendment of emissions reduction and capacity replacement action plan.

704.9518      Approval or modification of amendment to action plan or energy supply plan.

704.9519      Approval or modification of amendment to emissions reduction and capacity replacement action plan.

704.952        Sessions for reviewing plans; procedure for resolving issues during sessions; summary of topics and conclusions; public meeting to provide overview of anticipated filing or amendment of resource plan.

704.9522      Measurement and verification protocol for energy efficiency and conservation measures: Duties of utility provider.

704.95225    Recovery of certain amounts based on measurable and verifiable effects of implementation of programs for energy efficiency and conservation.

704.9523      Accounting for and recovery of costs of implementing programs for energy efficiency and conservation.

704.95245    Accounting for and recovery of costs of new utility facilities constructed or acquired and owned pursuant to emissions reduction and capacity replacement plan.

704.9525      Severability.

RESOURCE PLANNING AND ENERGY CONSERVATION FOR CERTAIN NATURAL GAS UTILITIES

General Provisions

704.953        Definitions.

704.9534      “Base tariff general rate” defined.

704.954        “Conservation” defined.

704.9541      “Conservation and energy efficiency plan” defined.

704.9543      “Customer class” defined.

704.9545      “Demand” defined.

704.95455    “Energy efficiency” defined.

704.95457    “Equity adder methodology” defined.

704.9555      “Forecast of base growth” defined.

704.9557      “Forecast period” defined.

704.9559      “Gas utility” defined.

704.9561      “Gas year” defined.

704.9562      “General revenue” defined.

704.9563      “General revenue decoupling methodology” defined.

704.9566      “Informational report” defined.

704.957        “Load management” defined.

704.9575      “Major facilities for the supply of gas” defined.

704.958        “Normal weather conditions” defined.

704.9587      “Sources of natural gas” defined.

704.959        “Storage facilities” defined.

704.9595      “Substantially accurate data” defined.

704.9596      “Substantive conservation and energy efficiency program” defined.

704.9597      “Total resource cost test” defined.

704.9598      “Tracking period” defined.

704.960        “Unaccounted for gas” defined.

704.9605      “Weather at maximum design conditions” defined.

704.9608      Adoption by reference of FERC Account No. 182.3 from Uniform System of Accounts of Federal Energy Regulatory Commission.

Informational Reports

704.961        Submission of informational report and updates.

704.9615      Comprehensive summary of informational report.

704.963        Maps of major facilities for supply of gas and sources of natural gas.

704.964        Projection of future prices.

704.9645      Forecasts of sales volumes and annual peak demand.

704.9655      Forecast for base growth; assessments of base conservation; levels of energy savings or reduction in demand.

704.966        Information regarding major facilities; consideration of options for major facilities.

704.9665      Criteria for retirement of major facilities.

704.9675      Discussion of alternative strategies.

704.968        Plan for supply of gas; long-term arrangements for supply, storage and transportation of gas.

704.9687      Order accepting informational report or specifying inadequacies.

Conservation and Energy Efficiency Programs

704.9702      Purpose; applicability.

704.9704      Implementation of substantive programs using equity adder methodology for cost recovery.

704.9706      Conservation and energy efficiency plan: Submission; periodic filing; eligibility of programs to recover costs; order accepting plan or specifying inadequacies.

704.9708      Conservation and energy efficiency plan: Development and contents.

704.9712      Annual conservation and energy efficiency plan reports and analyses.

704.9714      Costs of implementing substantive programs: Accounting; recovery of costs.

704.9716      Use of general revenue decoupling methodology in lieu of equity adder methodology.

704.9718      Recovery or refund of deferred general revenue; general revenue decoupling adjustment rate.

GAS INFRASTRUCTURE EXPANSION RELATED TO PROGRAM OF ECONOMIC DEVELOPMENT

704.974        Definitions.

704.9741      “Alternative cost-recovery methodology” defined.

704.9742      “Direct benefits” defined.

704.9743      “Gas infrastructure” defined.

704.9744      “Gas infrastructure expansion activity” defined.

704.9745      “Gas infrastructure expansion application” defined.

704.9746      “Gas infrastructure expansion costs” defined.

704.9747      “Gas infrastructure expansion rates” defined.

704.9748      “Indirect benefits” defined.

704.9749      “Program of economic development” defined.

704.975        “Revenue requirement” defined.

704.9751      “Underserved” defined.

704.9752      “Unserved” defined.

704.9753      Gas infrastructure expansion application: Requirements and contents; written order by Commission.

704.9754      Utility may amend certificate of public convenience and necessity for infrastructure expansion activity; conditions.

704.9755      Utility applying for infrastructure expansion must provide notice to benefitting customers; contents; requirements.

704.9756      Adoption of alternative cost-recovery methodologies; factors for consideration by Commission; accounting standards for public utility collecting gas infrastructure expansion rate; conditions and limitations on collecting such rate.

704.9757      Commission order relating to infrastructure expansion application is not a determination of prudency of such activity; public utility shall seek determination of prudency in general rate application; requirements of application.

704.9758      Utility required to file annual report with Commission; contents; termination of requirement.

UTILITY SERVICE PROVIDED TO MOBILE HOME PARKS

704.980        Definitions.

704.981        “Common area” interpreted.

704.982        Lines and equipment: Adoption of federal safety standards; reporting of recommendations resulting from examination and testing.

704.983        Service charge: Deposit and use of money received; disposition of interest.

704.984        Service charge: Approval required for withdrawal; application for approval; notice of application.

704.985        Determination of charge to tenants for utility service when landlord is billed by utility or alternative seller.

704.986        Maintenance of records by landlord.

704.987        Annual report: Filing; contents.

704.988        Assessment and collection of late charge.

704.989        Notice of proposed increase in utility rates; notice of increase in charge for service.

704.990        Refunds to tenants and former tenants.

704.991        Termination of landlord’s interest in mobile home park: Duty of landlord to file evidence of transfer of money in certain accounts.

 

GENERAL PROVISIONS

      NAC 704.005  Definitions. (NRS 703.025, 704.210)  As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 704.0052 to 704.009, inclusive, have the meanings ascribed to them in those sections.

     [Pub. Service Comm’n, Gen. Order 19 Rule 101, eff. 6-9-77]—(NAC A 1-11-91; 10-25-95; A by Pub. Utilities Comm’n by R010-05, 9-7-2005; R167-05, 2-23-2006; R136-07, 1-30-2008; R070-07, 4-17-2008)

      NAC 704.0052  “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 704.0054  “Basic network service” defined. (NRS 703.025, 704.210)  “Basic network service” has the meaning ascribed to it in NRS 704.006.

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

      NAC 704.0055  “Basic service” defined. (NRS 703.025, 704.210)  “Basic service” means the provision to a customer of telephone service that provides access to the public switched telephone network, which includes a single-party access line or trunk, dial tone, touch tone, local usage, expanded local calling where available, access to emergency 911 service, and single-line directory listing. Basic service includes services provided through an alternative voice service, as that term is defined in subsection 4 of NRS 704.68881.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A 10-25-95; A by Pub. Utilities Comm’n by R006-09, 10-27-2009)

      NAC 704.0056  “Business line service” defined. (NRS 703.025, 704.210)  “Business line service” has the meaning ascribed to it in NRS 704.008.

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

      NAC 704.006  “Commission” defined. “(NRS 703.025, 704.210)  “Commission” means the Public Utilities Commission of Nevada.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.0065  “Competitive service” defined. (NRS 703.025, 704.210)  “Competitive service” means a service which is provided by a small-scale provider of last resort and which has been classified as a competitive service pursuant to NAC 704.6806 to 704.68076, inclusive.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.0066  “Competitive supplier” defined. (NRS 703.025, 704.210)  “Competitive supplier” has the meaning ascribed to it in NRS 704.011.

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

      NAC 704.0068  “Deregulated service” defined. (NRS 703.025, 704.210)  “Deregulated service” means a service which is provided by a small-scale provider of last resort and which is:

     1.  Determined by the Commission to be fully exempt from regulation; or

     2.  Exempt as a matter of law.

     (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 704.007  “Deregulation” defined. (NRS 703.025, 704.210)  “Deregulation” means partial or total exemption from regulation by the Commission of a service that the Commission determines to be competitive and includes exemption from tariff.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.0075  “Discretionary service” defined. (NRS 703.025, 704.210)  “Discretionary service” means a service which is provided by a small-scale provider of last resort and has been classified as a discretionary service pursuant to NAC 704.6806 to 704.68076, inclusive.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.0076  “Energy efficiency contract” defined. (NRS 703.025, 704.210)  “Energy efficiency contract” has the meaning ascribed to it in paragraph (a) of subsection 9 of NRS 704.7821.

     (Added to NAC by Pub. Utilities Comm’n by R167-05, eff. 2-23-2006)

      NAC 704.00765  “Energy efficiency measure” defined. (NRS 703.025, 704.210)  “Energy efficiency measure” has the meaning ascribed to it in NRS 704.7802.

     (Added to NAC by Pub. Utilities Comm’n by R167-05, eff. 2-23-2006)

      NAC 704.0077  “Essential service” defined. (NRS 703.025, 704.210)  “Essential service” means a service which is not classified as discretionary, competitive or deregulated.

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

      NAC 704.0079  “Exchange” defined. (NRS 703.025, 704.210)  “Exchange” means a geographic unit approved by the Commission for the administration and pricing of a telecommunication service in a specified area.

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

      NAC 704.008  “Exemption from tariff” defined. (NRS 703.025, 704.210)  “Exemption from tariff” means the partial or full exemption from the requirement of approval by the Commission of changes in the terms, conditions, and pricing decisions for a service that the Commission determines to be competitive.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.0085  “Flexibility of pricing” defined. (NRS 703.025, 704.210)  “Flexibility of pricing” means flexibility to establish and maintain a schedule of rates and charges which contains the minimum and maximum rates for each type of service provided and to change a rate within the approved range pursuant to the procedures of NAC 704.7475 and 704.7477.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R211-03, 4-5-2004)

      NAC 704.00861  “Incumbent local exchange carrier” defined. (NRS 703.025, 704.210)  “Incumbent local exchange carrier” has the meaning ascribed to it in NRS 704.0135.

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

      NAC 704.00862  “Interexchange carrier” defined. (NRS 703.025, 704.210)  “Interexchange carrier” has the meaning ascribed to it in NRS 704.0137.

     (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 704.00863  “Interruptible irrigation sales” defined. (NRS 703.025, 704.210)  “Interruptible irrigation sales” means the sale of electricity which is used for the sole purpose of pumping water to irrigate land for agricultural purposes and which is subject to the rate for interruptible service established pursuant to NAC 704.673.

     (Added to NAC by Pub. Utilities Comm’n by R070-07, eff. 4-17-2008)

      NAC 704.00864  “Intraexchange carrier” defined. (NRS 703.025, 704.210)  “Intraexchange carrier” means a person providing intrastate service for a fee within an exchange.

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

      NAC 704.00868  “Local area of transport and access” and “LATA” defined. (NRS 703.025, 704.210)  “Local area of transport and access” or “LATA” means an area within which Nevada Bell may operate pursuant to the order in United States v. American Telephone and Telegraph Co., 552 F. Supp. 131 (D.C. 1982). The term is equivalent to “local access and transport area” as used in that order.

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

      NAC 704.0087  “Operator service” defined. (NRS 703.025, 704.210)  “Operator service” means live or automated long distance operator service accessible from a public telephone or semipublic telephone in this State and provided by a telecommunication provider which provides credit card, collect, information or other operator services.

     (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 704.00872  “Other essential service” defined. (NRS 703.025, 704.210)  “Other essential service” means an essential service other than service which is a basic service.

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

      NAC 704.008723  “Portfolio energy credit” defined. (NRS 703.025, 704.210)  “Portfolio energy credit” has the meaning ascribed to it in NRS 704.7803.

     (Added to NAC by Pub. Utilities Comm’n by R167-05, eff. 2-23-2006)

      NAC 704.008727  “Portfolio energy system or efficiency measure” defined. (NRS 703.025, 704.210)  “Portfolio energy system or efficiency measure” has the meaning ascribed to it in NRS 704.7804.

     (Added to NAC by Pub. Utilities Comm’n by R167-05, eff. 2-23-2006)

      NAC 704.00873  “Presiding officer” defined. (NRS 703.025, 704.210)  “Presiding officer” has the meaning ascribed to it in NAC 703.090.

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

      NAC 704.00876  “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 704.0088  “Reseller” defined. (NRS 703.025, 704.210)  “Reseller” means a telecommunication provider who does not own any facilities for transmission, and whose primary business involves subscribing to services from another telecommunication provider and reselling those services for profit.

     (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 704.00882  “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 NRS 704.023.

     (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 704.00883  “Telecommunication” defined. (NRS 703.025, 704.210)  “Telecommunication” has the meaning ascribed to it in NRS 704.025.

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

      NAC 704.008835  “Telecommunication provider” and “telephone company” defined. (NRS 703.025, 704.210)  “Telecommunication provider” or “telephone company” means any person required to obtain from the Commission a certificate of public convenience and necessity pursuant to NRS 704.330 to provide telecommunication service. The term does not include hotels, motels, hospitals or other aggregators of telecommunication service for transient customers.

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

      NAC 704.00884  “Telecommunication service” and “telephone service” defined. (NRS 703.025, 704.210)  “Telecommunication service” or “telephone service” has the meaning ascribed to it in NRS 704.028.

     (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 704.009  “Uniform System of Accounts” defined. (NRS 703.025, 704.210)  “Uniform System of Accounts” means the Uniform System of Accounts prescribed for public utilities and licensees, classes A, B, C and D, published by the Federal Communications Commission and adopted by reference in NAC 704.645.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.0097  Deviation from provisions of chapter. (NRS 703.025, 704.210)  The Commission or presiding officer may allow deviation from any provision 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 the deviation is requested; and

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

     (Added to NAC by Pub. Utilities Comm’n by R047-02, eff. 10-24-2002; A by R010-05, 9-7-2005)

DEFERRED ACCOUNTING

      NAC 704.023  Definitions. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  As used in NAC 704.023 to 704.195, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.024 to 704.063, inclusive, have the meanings ascribed to them in those sections.

     (Supplied in codification; A by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R116-03, 10-30-2003; R084-05, 10-31-2005; R202-05, 11-13-2006; R076-11, 5-30-2012)

      NAC 704.024  “Adjustment date” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  “Adjustment date” means the end of the calendar year for an electric utility for the purposes of a deferred energy application, or the end of the calendar month selected by a gas utility for the purposes of a deferred energy application or an annual rate adjustment application.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.030  “Amortization period” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  “Amortization period” means:

     1.  For an electric utility not making quarterly adjustments to its deferred energy accounting adjustment, such period, not to exceed 12 months, after the end of the prior related test period, as determined by the Commission.

     2.  For a gas utility not making quarterly adjustments to its deferred energy accounting adjustment, such period, not to exceed 12 months, after the end of the prior related test period, as determined by the Commission.

     [Pub. Service Comm’n, Gen. Order 21 part § 2.2, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.031  “Annual rate adjustment application” defined. (NRS 703.025, 704.110, 704.185, 704.210)  “Annual rate adjustment application” means an application filed pursuant to subsection 9 of NRS 704.110 by a gas utility making quarterly adjustments to its base tariff energy rate.

     (Added to NAC by Pub. Utilities Comm’n by R202-05, eff. 11-13-2006; A by R076-11, 5-30-2012)

      NAC 704.032  “Base tariff energy rate” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  “Base tariff energy rate” means:

     1.  For an electric utility, the rate determined by dividing the cost of fuel for electric generation and purchased power, reduced by any revenue from off-system sales for the test period, by the total megawatt-hours that have been sold, exclusive of off-system sales, for the test period, except that if a regulation of the Commission or a specific fuel or purchased power contract so specifies, the costs and benefits must be treated in accordance with the regulation or the terms and conditions of the contract;

     2.  For a gas utility that does not make quarterly adjustments, the rate determined by dividing the cost of purchased gas by applicable sales as described in NAC 704.135; or

     3.  For a gas utility that makes quarterly adjustments, the rate determined pursuant to the methodology determined by the Commission pursuant to NAC 704.161.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R084-05, 10-31-2005; R202-05, 11-13-2006; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.035  “Deferred energy accounting” defined. (NRS 703.025, 704.185, 704.187, 704.210)  “Deferred energy accounting” means an accounting practice which provides for the monthly deferral of increased or decreased energy costs experienced during a specific period and the amortization of those costs during a subsequent period to the extent that:

     1.  An electric utility does not collect more or less than its actual cost of fuel for electric generation and purchased power which is prudently incurred; or

     2.  A gas utility does not collect more or less than its actual cost of purchased gas which is prudently incurred.

     [Pub. Service Comm’n, Gen. Order 21 § 2.6, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001)

      NAC 704.037  “Deferred energy accounting adjustment” defined. (NRS 703.025, 704.185, 704.187, 704.210)  “Deferred energy accounting adjustment” means the rate determined by dividing the deferred energy balance for the test period by the total Nevada jurisdictional kilowatt-hours, exclusive of interruptible irrigation sales, or therms which have been sold during the test period as described in NAC 704.101 and 704.111.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R070-07, 4-17-2008)

      NAC 704.039  “Deferred energy application” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  “Deferred energy application” means an application filed by:

     1.  An electric utility pursuant to subsection 11 of NRS 704.110 and NRS 704.187; or

     2.  A gas utility to clear its deferred energy accounts pursuant to NAC 704.023 to 704.195, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R100-01, eff. 12-17-2001; A by R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.045  “Deferred energy balance” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210, 704.7881)  “Deferred energy balance” means the amount contained in, for electric operations, FERC Account Nos. 182.3 and 254 and, for gas operations, FERC Account No. 191, and represents:

     1.  The difference between revenue received from the base tariff energy rate and the jurisdictional allocation of the amounts contained in the appropriate accounts listed in paragraphs (a), (b), (c), (d) and (g) of subsection 2 of NAC 704.120, which must be adjusted by the amounts contained in the appropriate subaccounts of the accounts set forth in paragraphs (e) and (h) of subsection 2 of NAC 704.120;

     2.  The amount resulting from the application of the deferred energy accounting adjustment to sales, as contained in the appropriate revenue accounts;

     3.  Revenues from interruptible irrigation sales;

     4.  The Nevada jurisdictional portion of refunds from suppliers, including any interest earned thereon;

     5.  Carrying charges as described in NAC 704.150;

     6.  The amount of any provided discount resulting from participation in the Economic Development Electric Rate Rider Program established pursuant to NRS 704.7875; and

     7.  Any amount recovered by order of the Commission pursuant to NRS 704.7879.

     [Pub. Service Comm’n, Gen. Order 21 § 2.5, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R070-07, 4-17-2008; R076-11, 5-30-2012; R043-12, 11-1-2012; R072-13, 12-23-2013)

      NAC 704.048  “Electric utility” defined. (NRS 703.025, 704.187, 704.210)  “Electric utility” means an electric utility that is required to use deferred energy accounting pursuant to NRS 704.187.

     (Added to NAC by Pub. Utilities Comm’n by R100-01, eff. 12-17-2001)

      NAC 704.050  “Energy costs” defined. (NRS 703.025, 704.185, 704.187, 704.210)  “Energy costs” means expenses associated with the acquisition of fuel for electric generation, purchased power and purchased gas as those expenses are defined in the Uniform System of Accounts of the Federal Energy Regulatory Commission and in the accounts which have been created by NAC 704.023 to 704.195, inclusive.

     [Pub. Service Comm’n, Gen. Order 21 § 2.7, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001)

      NAC 704.055  “FERC account” defined. (NRS 703.025, 704.185, 704.187, 704.210)  “FERC account” means an account contained in the Uniform System of Accounts created by the Federal Energy Regulatory Commission.

     [Pub. Service Comm’n, Gen. Order 21 § 2.8, eff. 11-8-79]—(NAC A 11-3-87)

      NAC 704.056  “Gas utility” defined. (NRS 703.025, 704.110, 704.185, 704.210)  “Gas utility” means a gas utility that elects to use deferred energy accounting pursuant to NRS 704.185, including a gas utility that is authorized to make quarterly adjustments to its base tariff energy rate pursuant to subsection 8 of NRS 704.110.

     (Added to NAC by Pub. Utilities Comm’n by R100-01, eff. 12-17-2001; A by R202-05, 11-13-2006; R076-11, 5-30-2012)

      NAC 704.058  “Off-system sales” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  “Off-system sales” means the short-term sale of energy or the capacity to produce energy, or both, where there is no commitment of the continuous availability of the energy. The term includes the short-term sale of energy provided pursuant to a tariff offering energy imbalance service.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R076-11, 5-30-2012)

      NAC 704.061  “Purchased gas” defined. (NRS 703.025, 704.185, 704.210)  “Purchased gas” means natural gas purchased for resale.

     (Added to NAC by Pub. Utilities Comm’n by R100-01, eff. 12-17-2001)

      NAC 704.063  “Test period” defined. (NRS 703.025, 704.185, 704.187, 704.210)  “Test period” means the 12 calendar months ending on the adjustment date.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87)

      NAC 704.075  Applicability; notice by gas utility of its intent to use deferred energy accounting. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  The provisions of NAC 704.023 to 704.195, inclusive, apply to:

     (a) Each electric utility that is required to use deferred energy accounting pursuant to NRS 704.187; and

     (b) Each gas utility that elects to use deferred energy accounting pursuant to NRS 704.185.

     2.  Before a gas utility institutes procedures for the use of deferred energy accounting, the gas utility must notify the Commission in writing of its intent to do so. The notice must include the base tariff energy rate and all supporting data required to calculate the rate according to the formulas provided in NAC 704.023 to 704.195, inclusive.

     [Pub. Service Comm’n, Gen. Order 21 § 1.21, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R076-11, 5-30-2012)

      NAC 704.090  Gas utilities: Termination of deferred energy accounting. (NRS 703.025, 704.185, 704.210)

     1.  A gas utility that uses deferred energy accounting pursuant to NAC 704.023 to 704.195, inclusive, may apply to the Commission for authority to terminate those accounting procedures. The gas utility may cease using those accounting procedures upon authorization from the Commission.

     2.  An application filed pursuant to this section must contain a report showing the Nevada jurisdictional earned rate of return for the specific operating department applying for termination for the most current 12 calendar months.

     3.  Within 45 days after the date on which the Commission authorizes termination, the gas utility shall file for the specific operating department which applied for termination a report containing:

     (a) The Nevada jurisdictional earned rate of return for the 12 calendar months ending on the date of termination.

     (b) A statement of the cumulative balance as of the date of termination. The Commission will issue an appropriate order for the disposition of this balance.

     [Pub. Service Comm’n, Gen. Order 21 § 1.23, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001)

      NAC 704.095  Deferred energy accounts: General requirements. (NRS 703.025, 704.185, 704.187, 704.210)  Deferred energy accounts:

     1.  May be used only to carry out deferred energy accounting procedures and are not amendments to any other regulation of the Commission; and

     2.  Must be consistent with the provisions of NAC 704.023 to 704.195, inclusive.

     [Pub. Service Comm’n, Gen. Order 21 § 3.1, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001)

      NAC 704.101  Deferred energy accounts: Required entries. (NRS 703.025, 704.110, 704.185, 704.187, 704.210, 704.7881)

     1.  Each electric utility and gas utility using deferred energy accounting shall maintain a deferred energy account. Entries must be made to the deferred energy account at the end of each month as follows:

     (a) For electric operations:

          (1) A debit entry or credit entry, if negative, to a subaccount of FERC Account No. 182.3, if the cumulative month-end balance is a debit, or a subaccount of FERC Account No. 254, if the cumulative month-end balance is a credit, equal to the cost of both fuel for electric generation and purchased power, reduced for revenues from off-system sales, distributed to the applicable jurisdiction by the ratio of the jurisdiction’s contribution to the output to lines, less the amount of revenue derived by applying the base tariff energy rate to that month’s applicable jurisdictional sales exclusive of interruptible irrigation sales.

          (2) A separate credit entry or debit entry, if negative, equal to the amount of revenue derived by applying the appropriate deferred energy accounting adjustment to that month’s applicable jurisdictional sales, exclusive of interruptible irrigation sales.

          (3) A credit entry equal to the amount of revenue from interruptible irrigation sales.

          (4) A credit entry equal to the jurisdictional amount of any cash refund, including interest if applicable, received from suppliers of fuel or purchased power.

          (5) A separate debit entry or credit entry, if negative, equal to the product of the ending balance multiplied by one-twelfth of the authorized rate of return as provided in NAC 704.150.

          (6) A debit entry equal to the amount of any provided discount resulting from participation in the Economic Development Electric Rate Rider Program established pursuant to NRS 704.7875.

          (7) A credit entry equal to any amount recovered by order of the Commission pursuant to NRS 704.7879.

     (b) For gas operations:

          (1) A debit entry or credit entry to FERC Account No. 191, if negative, equal to the cost of purchased gas for the month distributed to applicable jurisdictional sales by the ratio of those jurisdictional sales to total sales, less the amount of the revenue derived by applying the base tariff energy rate to that month’s applicable jurisdictional sales.

          (2) A credit entry or debit entry, if negative, equal to the amount of revenue derived by applying the appropriate deferred energy accounting adjustment to that month’s applicable jurisdictional sales.

          (3) A credit entry equal to the jurisdictional amount of any cash refund, including interest if applicable, received from suppliers of purchased gas.

          (4) A debit entry or credit entry, if negative, equal to the product of the ending balance multiplied by one-twelfth of the authorized rate of return as provided in NAC 704.150.

     2.  As used in this section, “output to lines” means the net generation by the system’s own generation, plus purchased power and less energy applicable to off-system sales.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R070-07, 4-17-2008; R051-09, 1-28-2010; R076-11, 5-30-2012; R043-12, 11-1-2012; R072-13, 12-23-2013; R117-13, 6-23-2014)

      NAC 704.105  Account for energy cost adjustments. (NRS 703.025, 704.185, 704.187, 704.210)  An account for energy cost adjustments must:

     1.  Contain contra entries to:

     (a) FERC Account No. 182.3 or 254, whichever is applicable, for electric operations; or

     (b) FERC Account No. 191, for gas operations.

     2.  Be debited or credited with the amount of the amortized energy cost differential for each month of each period of amortization.

     3.  Be maintained in a manner consistent with:

     (a) FERC Account No. 182.3 or 254, whichever is applicable, for electric operations; or

     (b) FERC Account No. 191, for gas operations.

     [Pub. Service Comm’n, Gen. Order 21 § 3.12, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R051-09, 1-28-2010)

      NAC 704.111  Clearing deferred energy accounts; calculation and application of deferred energy accounting adjustment. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  For each electric utility not making quarterly adjustments to its deferred energy accounting adjustment:

     (a) The electric utility shall clear annually any debit balance in the subaccount of FERC Account No. 182.3 or credit balance in the subaccount of FERC Account No. 254 over an approved period by dividing the cumulative debit or credit balance by the total Nevada jurisdictional kilowatt-hours which have been sold, exclusive of interruptible irrigation sales, during the test period. The resulting positive or negative deferred energy accounting adjustment must be applied to each Nevada jurisdictional customer’s monthly use of energy, exclusive of interruptible irrigation sales, expressed in kilowatt-hours.

     (b) The electric utility shall not bill or credit the deferred energy accounting adjustment to the customers of the electric utility until authorized by the Commission after a proper deferred energy application is made therefor.

     2.  For each gas utility not making quarterly adjustments to its deferred energy accounting adjustment:

     (a) The gas utility shall clear annually any debit or credit balance in FERC Account No. 191 by dividing the cumulative debit or credit balance by the total Nevada jurisdictional therms which have been sold during the test period. The resulting positive or negative deferred energy accounting adjustment must be applied to each Nevada jurisdictional customer’s monthly use of energy expressed in therms.

     (b) The gas utility shall not bill or credit the deferred energy accounting adjustment to the customers of the gas utility until authorized by the Commission after a proper deferred energy application or annual rate adjustment application is made therefor.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R202-05, 11-13-2006; R071-07, 10-31-2007; R070-07, 4-17-2008; R051-09, 1-28-2010; R076-11, 5-30-2012)

      NAC 704.116  Deferred energy applications; calculation and effective period of base tariff energy rate and deferred energy accounting adjustment. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  Except as otherwise provided for an electric utility or a gas utility which adjusts its deferred energy accounting adjustment and its base tariff energy rate on a quarterly basis and except as otherwise provided in subsection 2 or 3, each electric utility and gas utility shall file annually with the Commission a deferred energy application for each of its jurisdictional operating departments in this State setting forth its calculations of the deferred energy accounting adjustment and the base tariff energy rate.

     2.  A gas utility that is not authorized to make quarterly adjustments to its base tariff energy rate may file with the Commission a semiannual deferred energy application if the net change in revenue necessary to clear the change in the deferred energy account balance at the end of the 6-month period exceeds plus or minus 5 percent of the total revenue at the last authorized rates for purchased gas.

     3.  A gas utility that makes quarterly adjustments to its base tariff energy rate pursuant to subsection 8 of NRS 704.110 shall file an annual rate adjustment application with the Commission for each of its jurisdictional operating departments in this State. Except for a gas utility that makes quarterly adjustments to its deferred energy accounting adjustment, the application must set forth the annual adjustment to the deferred energy accounting adjustment. The annual rate adjustment application must be filed not later than the date specified by the Commission pursuant to subsection 3 of NAC 704.161.

     4.  Each electric utility shall file its deferred energy application pursuant to subsection 3 of NRS 704.187. Each gas utility shall file its deferred energy application not later than 65 days after the adjustment date.

     5.  If an electric utility files a deferred energy application while a general rate application is pending before the Commission, the electric utility shall:

     (a) Submit with its deferred energy application information relating to the cost of service and rate design; and

     (b) Supplement its general rate application with the same information, if such information was not submitted with the general rate application.

     6.  Except for an electric utility or a gas utility that makes quarterly adjustments to its deferred energy accounting adjustment, the deferred energy accounting adjustment of an electric utility or a gas utility must be calculated pursuant to NAC 704.101 and 704.111.

     7.  The base tariff energy rate of a gas utility that is not authorized by the Commission to make quarterly adjustments to its base tariff energy rate must be calculated pursuant to NAC 704.135.

     8.  The base tariff energy rate of a gas utility that is not authorized by the Commission to make quarterly adjustments to its base tariff energy rate remains in effect until a revised rate is authorized by the Commission.

     9.  Except for an electric utility or a gas utility that makes quarterly adjustments to its deferred energy accounting adjustment, the deferred energy accounting adjustment of an electric utility or a gas utility remains in effect until the end of the designated amortization period or until an amended rate is authorized by the Commission, whichever occurs first.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R084-05, 10-31-2005; R202-05, 11-13-2006; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.117  Gas utilities: Application to revise base tariff energy rate. (NRS 703.025, 704.110, 704.185, 704.210)  In accordance with subsection 7 of NRS 704.110, a gas utility may file an application to revise its base tariff energy rate every 30 days unless the Commission has approved quarterly adjustments to the base tariff energy rate pursuant to NRS 704.100 and 704.110.

     (Added to NAC by Pub. Utilities Comm’n by R084-05, eff. 10-31-2005; A by R202-05, 11-13-2006; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.1172  Gas utilities making quarterly adjustments to base tariff energy rate: Application to make quarterly adjustments to deferred energy accounting adjustment. (NRS 703.025, 704.110, 704.185, 704.210)

     1.  A gas utility which makes quarterly adjustments to its base tariff energy rate must file an application with the Commission pursuant to subsection 8 of NRS 704.110 and must receive approval from the Commission before the utility may make quarterly adjustments to its deferred energy accounting adjustment.

     2.  An application to make quarterly adjustments to its deferred energy accounting adjustment submitted by a gas utility must include, without limitation:

     (a) The rationale in support of the decision of the gas utility to apply to the Commission for approval to implement quarterly adjustments to its deferred energy accounting adjustment;

     (b) The proposed adjustment dates, filing dates and effective dates for each of the proposed quarterly adjustments to the deferred energy accounting adjustment;

     (c) The methodology proposed to be used to calculate the quarterly adjustments to the deferred energy accounting adjustment and the rationale supporting the selection of the methodology; and

     (d) The amount of the proposed initial quarterly adjustment to the deferred energy accounting adjustment.

     3.  If the Commission approves an application for a quarterly adjustment to a deferred energy accounting adjustment, the Commission will specify the adjustment dates, filing dates, effective dates, methodology and amounts to be used by the applicant.

     (Added to NAC by Pub. Utilities Comm’n by R076-11, eff. 5-30-2012)

      NAC 704.1174  Gas utilities: Application to discontinue making quarterly adjustments to deferred energy accounting adjustment and to establish deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116. (NRS 703.025, 704.110, 704.185, 704.210)

     1.  A gas utility may file an application pursuant to subsection 16 of NRS 704.110 requesting approval to discontinue its authority to make quarterly adjustments to its deferred energy accounting adjustment and to establish its deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116. The gas utility may cease making quarterly adjustments to its deferred energy accounting adjustment upon approval from the Commission.

     2.  The application filed pursuant to subsection 16 of NRS 704.110 must include, without limitation:

     (a) The rationale supporting the request to discontinue the utility’s authority to make quarterly adjustments to its deferred energy accounting adjustment; and

     (b) The proposed effective date of the transition.

     3.  An application submitted pursuant to subsection 16 of NRS 704.110 does not authorize a gas utility to terminate deferred energy accounting pursuant to NAC 704.090.

     (Added to NAC by Pub. Utilities Comm’n by R076-11, eff. 5-30-2012)

      NAC 704.1176  Electric utilities: Application to make quarterly adjustments to deferred energy accounting adjustment. (NRS 703.025, 704.110, 704.187, 704.210)

     1.  An electric utility must file an application with the Commission pursuant to subsection 10 of NRS 704.110 and must receive approval from the Commission before the electric utility may make quarterly adjustments to its deferred energy accounting adjustment.

     2.  An application to make quarterly adjustments to its deferred energy accounting adjustment submitted by an electric utility must include, without limitation:

     (a) The rationale in support of the decision of the electric utility to apply to the Commission for approval to implement quarterly adjustments to its deferred energy accounting adjustment;

     (b) The proposed adjustment dates, filing dates and effective dates for each of the proposed quarterly adjustments to the deferred energy accounting adjustment;

     (c) The methodology proposed to be used to calculate the quarterly adjustments to the deferred energy accounting adjustment and the rationale supporting the selection of the methodology; and

     (d) The amount of the proposed initial quarterly adjustment to the deferred energy accounting adjustment.

     3.  If the Commission approves an application for a quarterly adjustment to a deferred energy accounting adjustment, the Commission will specify the adjustment dates, filing dates, effective dates, methodology and amounts to be used by the applicant.

     (Added to NAC by Pub. Utilities Comm’n by R076-11, eff. 5-30-2012)

      NAC 704.1178  Electric utilities: Application to discontinue making quarterly adjustments to deferred energy accounting adjustment and to establish deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116. (NRS 703.025, 704.110, 704.187, 704.210)

     1.  An electric utility may file an application pursuant to subsection 16 of NRS 704.110 requesting approval to discontinue its authority to make quarterly adjustments to its deferred energy accounting adjustment and to establish its deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116. The electric utility may cease making quarterly adjustments to its deferred energy accounting adjustment upon approval from the Commission.

     2.  The application filed pursuant to subsection 16 of NRS 704.110 must include, without limitation:

     (a) The rationale supporting the request to discontinue the utility’s authority to make quarterly adjustments to its deferred energy accounting adjustment; and

     (b) The proposed effective date of the transition.

     (Added to NAC by Pub. Utilities Comm’n by R076-11, eff. 5-30-2012)

      NAC 704.118  Notice of certain applications, hearings thereon and quarterly adjustments to base tariff energy rate and, if applicable, deferred energy accounting adjustments. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  An electric utility or a gas utility that files a deferred energy application pursuant to NAC 704.116, a gas utility that files an application to revise its base tariff energy rate pursuant to NAC 704.117 or a gas utility that files an annual rate adjustment application pursuant to subsection 3 of NAC 704.116 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 to 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 setting forth the locations where additional information may be obtained; and

     (c) Within 20 days after filing the application, submit to the Commission affidavits that indicate that the application has been filed and that the utility has complied with the provisions of paragraphs (a) and (b).

     2.  After the Commission has scheduled a date for a hearing on the application, the applicant shall, at least 10 days before the scheduled date of the hearing, give 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 electric or gas utility filing the application. The notice must be given by at least two of the 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 newspapers, television and 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) Set forth 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.

     4.  An electric utility shall, for each quarterly adjustment to its base tariff energy rate and, if applicable, each quarterly adjustment to its deferred energy accounting adjustment, provide:

     (a) Notice to the Commission pursuant to the provisions of paragraph (a) of subsection 11 of NRS 704.110, including, without limitation:

          (1) A copy of the notice of the quarterly adjustment to its base tariff energy rate and, if applicable, the quarterly adjustment to its deferred energy accounting adjustment that the electric utility will provide to its customers;

          (2) Supporting information for all amounts shown in the notice of the quarterly adjustment to its base tariff energy rate and, if applicable, the quarterly adjustment to its deferred energy accounting adjustment that the electric utility will provide to its customers;

          (3) The calculations supporting the change in its base tariff energy rate and, if applicable, its deferred energy accounting adjustment; and

          (4) The tariff sheets reflecting the quarterly adjustment to its base tariff energy rate and, if applicable, the quarterly adjustment to its deferred energy accounting adjustment;

     (b) Notice to its customers as required pursuant to the provisions of paragraph (b) of subsection 11 of NRS 704.110; and

     (c) A copy of the notice provided pursuant to paragraph (a) to the Regulatory Operations Staff of the Commission and to the Bureau of Consumer Protection in the Office of the Attorney General.

     5.  A gas utility that is authorized to make quarterly adjustments to its base tariff energy rate and, if applicable, quarterly adjustments to its deferred energy accounting adjustment shall, for each quarterly adjustment, provide:

     (a) Notice to the Commission pursuant to the provisions of paragraph (a) of subsection 9 of NRS 704.110, including, without limitation:

          (1) A copy of the notice of the quarterly adjustment to its base tariff energy rate and, if applicable, the quarterly adjustment to its deferred energy accounting adjustment that the gas utility will provide to its customers;

          (2) Supporting information for all amounts shown in the notice of the quarterly adjustment to its base tariff energy rate and, if applicable, the quarterly adjustment to its deferred energy accounting adjustment that the gas utility will provide to its customers; and

          (3) The calculations supporting the change in its base tariff energy rate and, if applicable, its deferred energy accounting adjustment;

     (b) Notice to its customers as required pursuant to the provisions of paragraph (b) of subsection 9 of NRS 704.110; and

     (c) A copy of the notice provided pursuant to paragraph (a) to the Regulatory Operations Staff of the Commission and to the Bureau of Consumer Protection in the Office of the Attorney General.

     (Added to NAC by Pub. Utilities Comm’n by R116-03, eff. 10-30-2003; A by R084-05, 10-31-2005; R202-05, 11-13-2006; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.120  Adoption by reference of certain accounts from Uniform System of Accounts of Federal Energy Regulatory Commission. (NRS 703.025, 704.110, 704.185, 704.187, 704.210, 704.215)

     1.  The Commission hereby adopts by reference from the Uniform System of Accounts of the Federal Energy Regulatory Commission those accounts enumerated in this section as FERC accounts. These accounts are contained in 18 C.F.R. Parts 101 and 201, and the volume of the Code of Federal Regulations containing these Parts may be purchased by mail from the Superintendent of Documents, United States Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $68. These Parts may be obtained free of charge on the Internet at http://www.gpoaccess.gov/cfr/index.html.

     2.  The following accounts are hereby adopted:

     (a) Fuel for electric generation, FERC Account Nos. 501 and 547.

     (b) Steam From Other Sources, FERC Account No. 503.

     (c) Purchased power, FERC Account No. 555.

     (d) Transmission of electricity by others, FERC Account No. 565.

     (e) Sales for resale, electric, FERC Account No. 447.

     (f) Income tax accounts, electric and gas, FERC Account Nos. 190, 236, 283, 409.1, 410.1 and 411.1.

     (g) Gas for resale, FERC Account Nos. 728, 755, 760, 777, 800 to 809.2, inclusive, 811, 812 and 858.

     (h) Sales for resale, gas, FERC Account No. 483.

     (i) Purchased gas cost adjustments, FERC Account No. 805.1.

     (j) Unrecovered purchased gas costs, FERC Account No. 191.

     (k) Interest and dividend income, FERC Account No. 419.

     (l) Other regulatory assets, electric, FERC Account No. 182.3.

     (m) Other expenses, FERC Account No. 557.

     (n) Other regulatory liabilities, FERC Account No. 254.

     (o) Other interest expense, FERC Account No. 431.

     [Pub. Service Comm’n, Gen. Order 21 § 3.2, eff. 11-8-79; A 8-21-81]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R051-09, 1-28-2010; R076-11, 5-30-2012)

      NAC 704.135  Gas utilities: Calculation of certain base tariff energy rates and recommendation of preferred base tariff energy rate. (NRS 703.025, 704.110, 704.185, 704.210)

     1.  A gas utility that does not make quarterly adjustments to its base tariff energy rate (BTER) shall, pursuant to subsections 2 and 3, calculate a forecasted and a historic base tariff energy rate for purchased gas and recommend its preferred base tariff energy rate to the Commission.

     2.  The gas utility shall calculate a forecasted base tariff energy rate based on the following formula:

 

     Where:

     PG = Sales volumes of the gas utility, including an adjustment for projected shrinkage in the distribution system and the consumption of gas by an upstream pipeline company, used to calculate purchases necessary to support the given level of sales for the test period expressed in therms.

     UG = The projected weighted average unit price that will be paid for gas during the period in which the rate will be in effect.

     SG = Actual volumes of gas sold for the test period expressed in therms.

     FG = Fixed costs associated with the purchase of gas for the period in which the rate will be in effect as may be enumerated in the accounts specified in paragraph (g) of subsection 2 of NAC 704.120.

     VG = Variable transportation costs.

     TG = Distribution system shrinkage costs paid by transportation customers.

     Then:

                     (PG X UG) + FG + (VG – TG)

     BTER = ^{__________________________________}

                                           SG

     3.  Except as otherwise provided in subsection 4, the gas utility shall calculate a historic base tariff energy rate based on the following formula:

 

     Where:

     PG = Sales volumes of the gas utility, including an adjustment for projected shrinkage in the distribution system and the consumption of gas by an upstream pipeline company, used to calculate purchases necessary to support the given level of sales for the test period expressed in therms.

     UG = The weighted average of the latest experienced unit prices paid for gas during the test period.

     SG = Actual volumes of gas sold for the test period expressed in therms.

     FG = Annualized fixed costs associated with the purchase of gas for the test period as may be enumerated in the accounts specified in paragraph (g) of subsection 2 of NAC 704.120.

     VG = Variable transportation costs.

     TG = Distribution system shrinkage costs paid by transportation customers.

     Then:

                     (PG X UG) + FG + (VG – TG)

     BTER = ^{__________________________________}

                                           SG

 

     4.  A gas utility that makes quarterly adjustments to its base tariff energy rate shall calculate its base tariff energy rate using the methodology determined by the Commission pursuant to NAC 704.161.

     [Pub. Service Comm’n, Gen. Order 21 § 3.33, eff. 11-8-79; A 8-21-81]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R084-05, 10-31-2005; R202-05, 11-13-2006; R076-11, 5-30-2012)

      NAC 704.145  Additional requirements for deferred energy accounts; accounts relating to income taxes. (NRS 703.025, 704.185, 704.187, 704.210)

     1.  FERC Account No. 182.3 or, if appropriate, FERC Account Nos. 254 and 557 must be used in Nevada jurisdictional electric operations for deferred energy accounting to record monthly entries in the manner prescribed in NAC 704.101 and 704.105.

     2.  FERC Account Nos. 191 and 805.1 must be used in Nevada jurisdictional gas operations to record the monthly entries in the manner prescribed in NAC 704.101 and 704.105.

     3.  The contra entries to the deferred energy accounts referred to in subsections 1 and 2 must be made to a subaccount of FERC Account No. 557, for electric cost differentials, and FERC Account No. 805.1, for gas cost differentials.

     4.  The income tax effect applicable to the debit and credit entries to the deferred energy accounts set forth in NAC 704.023 to 704.195, inclusive, must be recorded in the following FERC accounts:

 

Ê These accounts must be maintained so as to separate the income tax effect between electric and gas operations. The accounts must be maintained in a manner consistent with FERC Account No. 191, for gas operations, and FERC Account No. 182.3 or 254, for electric operations.

     [Pub. Service Comm’n, Gen. Order 21 § 4.0, eff. 11-8-79; A 8-21-81]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R051-09, 1-28-2010)

      NAC 704.150  Carrying charges. (NRS 703.025, 704.185, 704.187, 704.210)

     1.  Except as otherwise provided in subsection 3, a carrying charge must be computed on the current average monthly debit balance in the subaccount of FERC Account No. 182.3 or credit balance in the subaccount of FERC Account No. 254, for electric operations, or FERC Account No. 191, for gas operations, and must be respectively debited or credited to the account at the carrying charge rate of one-twelfth of the overall rate of return as authorized by the Commission for the particular department or division of the electric utility or gas utility, adjusted for the federal income tax applicable to the equity component of the overall rate of return computed at the applicable statutory rate. The rate of the carrying charge must be applied to the entire balance in the subaccount of FERC Account No. 182.3 or the subaccount of FERC Account No. 254, for electric operations, or FERC Account No. 191, for gas operations, net of applicable accumulated deferred income taxes, as follows:

 

Carrying charge = (carrying charge rate) x (average deferred energy balance for the month) x (1 - statutory income tax rate)

 

     2.  The contra entries for the carrying charge must be made to:

     (a) FERC Account No. 419, if a credit; or

     (b) FERC Account No. 431, if a debit.

     3.  If, in any month, the Nevada jurisdictional earned rate of return for an operating department of the electric utility or gas utility exceeds the overall rate of return last authorized by the Commission for that department, and if the average monthly balance in FERC Account No. 182.3, for electric operations, or FERC Account No. 191, for gas operations, is a debit, an adjustment amount will be calculated equal to the amount which exceeds the utility’s last authorized rate of return. The Nevada jurisdictional earned rate of return will be calculated quarterly using the 12-month period ending with the last month of the quarter and will apply to the carrying charge calculation in each month of that quarter. Carrying charges may accrue only on that portion of the debit balance which exceeds the adjustment amount.

     [Pub. Service Comm’n, Gen. Order 21 § 4.7, eff. 8-21-81; A 12-2-81]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07 & R073-07, 10-31-2007; R051-09, 1-28-2010)

      NAC 704.161  Gas utilities: Application to make quarterly adjustments to base tariff energy rate. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  Before a gas utility which purchases natural gas for resale may make quarterly adjustments to its base tariff energy rate, the utility must file an application pursuant to subsection 8 of NRS 704.110 and must receive approval from the Commission to adjust its base tariff energy rate on a quarterly basis between annual rate adjustment applications.

     2.  The application described in subsection 1 must include, without limitation:

     (a) The rationale in support of the decision of the gas utility to apply to the Commission for approval to implement quarterly adjustments to its base tariff energy rate;

     (b) The proposed filing dates and effective dates for each of the quarterly adjustments to its base tariff energy rate;

     (c) The proposed filing date and effective date for the annual rate adjustment application;

     (d) The methodology proposed to be used to calculate the quarterly adjustments to its base tariff energy rate and the rationale supporting the selection of the methodology; and

     (e) The amount of the proposed initial quarterly adjustment to the base tariff energy rate.

     3.  If the Commission approves an application described in subsection 1, the Commission will specify the filing and effective dates, methodology and amounts to be used by the applicant.

     (Added to NAC by Pub. Utilities Comm’n by R202-05, eff. 11-13-2006; A by R076-11, 5-30-2012)

      NAC 704.166  Gas utilities: Application to terminate quarterly adjustments to base tariff energy rate and to establish base tariff energy rate. (NRS 703.025, 704.110, 704.185, 704.210)

     1.  A gas utility may file an application requesting approval to terminate its authority to make quarterly adjustments to its base tariff energy rate and to establish its base tariff energy rate pursuant to NAC 704.116 or 704.117. The gas utility may cease making quarterly adjustments to its base tariff energy rate upon authorization from the Commission.

     2.  The application submitted pursuant to subsection 1 must include, without limitation:

     (a) The rationale supporting the request to terminate the utility’s authority to make quarterly adjustments to its base tariff energy rate;

     (b) The proposed effective date of the transition; and

     (c) If applicable, the proposed base tariff energy rate calculated pursuant to NAC 704.135.

     (Added to NAC by Pub. Utilities Comm’n by R202-05, eff. 11-13-2006; A by R076-11, 5-30-2012)

      NAC 704.195  Monthly reports. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  Not later than 45 days after the end of each month in every deferred energy period, each electric utility and gas utility shall submit to the Commission a report containing all transactions and calculations affecting the deferred energy accounts. The monthly reports must include any other information or data required by the Commission to expedite or facilitate the deferred energy application or annual rate adjustment application and hearing necessary to clear the balances of deferred energy accounts.

     2.  Each electric utility shall submit in its monthly reports for electric operations the monthly cost of all energy generated and purchased, indicating:

     (a) The number of megawatt-hours generated as to quantity, cost and type of fuel used in each generating unit;

     (b) The number of megawatt-hours purchased and the cost, including demand charges, for each supplier by rate schedule or contract; and

     (c) The basis of charges and data supporting those charges.

     3.  Each gas utility shall submit in its monthly reports for gas operations the monthly cost of all gas purchased, indicating:

     (a) The quantity and cost of gas purchased from each supplier by rate schedule or contract; and

     (b) The basis of the charges and the invoices supporting the charges.

     [Pub. Service Comm’n, Gen. Order 21 § 6.1, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R202-05, 11-13-2006)

RECOVERY OF VARIABLE INTEREST EXPENSE OR DIVIDENDS

      NAC 704.210  Definitions. (NRS 703.025, 704.210, 704.324)  As used in NAC 704.210 to 704.222, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.211 to 704.216, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.211  “Amortization period” defined. (NRS 703.025, 704.210, 704.324)  “Amortization period” has the meaning ascribed to it in NAC 704.030.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.212  “Deferred energy accounting adjustment” defined. (NRS 703.025, 704.210, 704.324)  “Deferred energy accounting adjustment” has the meaning ascribed to it in NAC 704.037.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.213  “FERC account” defined. (NRS 703.025, 704.210, 704.324)  “FERC account” has the meaning ascribed to it in NAC 704.055.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.214  “Test period” defined. (NRS 703.025, 704.210, 704.324)  “Test period” has the meaning ascribed to it in NAC 704.063.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.215  “Weighted average variable interest or dividend rate” defined. (NRS 703.025, 704.210, 704.324)  “Weighted average variable interest or dividend rate” means the weighted average of the rates over the 12-month test period for all outstanding variable rate securities issued by the utility and included in the Nevada jurisdictional capital structure, as approved in the last general rate case or other proceeding if stipulated by the parties and accepted by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.216  “Utility” defined. (NRS 703.025, 704.210, 704.324)  “Utility” means a public utility, as defined in NRS 704.020.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.217  Application to recover deferred variable interest expense or dividends: Filing and contents. (NRS 703.025, 704.210, 704.324)

     1.  A utility that recovers its fuel costs through either an annual rate adjustment or a deferred energy application may file an application to recover deferred variable interest expense or dividends and to update the level of variable interest expense or dividends included in the current rates within 45 days after the end of the utility’s test period or concurrent with its annual rate adjustment application, whichever is applicable. An application may not be filed more than once during a calendar year.

     2.  The application must include:

     (a) A request for approval to adopt the procedure;

     (b) A calculation of the weighted average variable interest or dividend rate;

     (c) A calculation of the net change in the base tariff general rate resulting from changes in the weighted average variable interest or dividend rate; and

     (d) A calculation of the net change in the base tariff general rate resulting from changes in accumulation of deferred interest.

     3.  The net change in the base tariff general rate (1BTGR) resulting from changes in the weighted average variable interest or dividend rate must be based on the following formula:

 

                                                          [AVIR(new) - AVIR(prior)] X RB

1BTGR = ______________________________

                                                                                   BU

 

     4.  The net change in the base tariff general rate (2BTGR) resulting from changes in accumulation of deferred interest (ADI) must be based on the following formula:

 

                                                         ADI(new)               ADI(prior)

                                    2BTGR = ___________ - ___________

                                                          BU(new)                BU(prior)

 

     5.  The cumulative adjustment to the base tariff general rate resulting from changes in the weighted average variable interest or dividend rate and changes in the accumulations of deferred interest must be based on the following formula:

 

BTGR(new) = BTGR(prior) + 1BTGR + 2BTGR

 

     6.  As used in this section:

     (a) “ADI(new)” means the balance in the subaccount of FERC Account No. 182.3 or 254, whichever is applicable, at the end of the current test period.

     (b) “ADI(prior)” means the balance in the subaccount of FERC Account No. 182.3 or 254, whichever is applicable, at the end of the prior test period.

     (c) “AVIR(new)” means the current test period’s weighted variable interest or dividend rate for all outstanding variable rate securities issued by the utility and included in the Nevada jurisdictional capital structure, as approved in the last general rate case or other proceeding.

     (d) “AVIR(prior)” means the previously approved weighted average variable interest or dividend rate.

     (e) “BU” means the billing units established in the last general rate case or other proceeding.

     (f) “BU(new)” means the billing units established during the current proceeding.

     (g) “BU(prior)” means the billing units established during the prior proceeding.

     (h) “RB” means the rate base established in the last general rate case or other proceeding.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)

      NAC 704.218  Calculation of revenues and expenses related to allowable variable interest expense or dividends. (NRS 703.025, 704.210, 704.324)

     1.  A utility which plans to seek recovery of variable interest expense or dividends shall calculate revenues and expenses related to allowable variable interest expense or dividends as follows:

     (a) The currently recoverable variable interest expense or dividends must be calculated each month by multiplying the last authorized rate base by one-twelfth of the last authorized weighted average variable interest or dividend rate.

     (b) The difference between the currently recoverable expense and the current month’s weighted average variable rate multiplied by the last authorized rate base must be recorded in a subaccount of FERC Account No. 182.3 or 254, whichever is applicable, with the offsetting amount recorded in FERC Account No. 407.3 or 407.4, whichever is applicable. The current month’s weighted average variable rate is the current rate for all outstanding variable rate securities issued by the utility and included in the Nevada jurisdictional capital structure, as approved in the last general rate case or other proceeding.

     (c) Whenever a new weighted average variable interest or dividend rate is authorized, revenues must be increased or decreased annually to match changes in allowable interest expense or dividends by adjusting the base tariff general rate based on the following formula:

 

1BTGR(new) = 1BTGR(prior) ± 1BTGR

 

     2.  As used in this section:

     (a) “1BTGR” means the net change in the base tariff general rate resulting from changes in the weighted average variable interest or dividend rate, calculated pursuant to subsection 3 of NAC 704.217.

     (b) “1BTGR(new)” means the base tariff general rate established in the current proceeding.

     (c) “1BTGR(prior)” means the base tariff general rate established in the last general rate case or other proceeding.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)

      NAC 704.219  Calculation of revenues and expenses related to accumulation of deferred variable interest or dividends. (NRS 703.025, 704.210, 704.324)

     1.  A utility which plans to seek recovery of variable interest expense or dividends shall calculate revenues and expenses related to the accumulation of deferred variable interest or dividends as follows:

     (a) Monthly amortization revenues must be credited or debited to FERC Account No. 182.3 or to FERC Account No. 254, whichever is applicable, based on the following formula:

 

2BTGR X BU(new)

 

     (b) A corresponding debit or credit must be transferred from the subaccount of FERC Account No. 182.3 or from FERC Account No. 254, whichever is applicable, to a subaccount of FERC Account No. 407.3 or 407.4, whichever is applicable.

     (c) Whenever a new accumulation of deferred interest is authorized, revenues must be increased or decreased annually to match changes in accumulation of deferred variable interest by adjusting the base tariff general rate based on the following formula:

 

2BTGR(new) = 2BTGR(prior) ± 2BTGR

 

     2.  As used in this section:

     (a) “2BTGR” means the net change in the base tariff general rate resulting from changes in the accumulation of deferred interest, calculated pursuant to subsection 4 of NAC 704.217.

     (b) “2BTGR(new)” means the base tariff general rate established in the current proceeding.

     (c) “2BTGR(prior)” means the base tariff general rate established in the last general rate case or other proceeding.

     (d) “BU(new)” means the billing units established during the current proceeding.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)

      NAC 704.220  Computation of carrying charge. (NRS 703.025, 704.210, 704.324)  A utility which plans to seek recovery of variable interest expense or dividends shall compute a carrying charge on the average monthly debit or credit balance in the subaccount of FERC Account No. 182.3 or in FERC Account No. 254, whichever is applicable, at the end of each month as follows:

     1.  The carrying charge must be debited or credited to the subaccount of FERC Account No. 182.3 or to FERC Account No. 254, whichever is applicable, at the rate of one-twelfth of the overall rate of the return which was last authorized by the Commission for the particular department or division of the utility, adjusted for federal income tax applicable to the equity component of the overall rate of return computed at the applicable statutory rate. The rate of carrying charge must be applied to the entire balance in the subaccount or account, net of applicable accumulated deferred income taxes, as follows:

 

Carrying charge = (carrying charge rate) X (average deferred variable interest expense balance for the month) X (1 - statutory income tax rate)

 

     2.  The contra entries for the carrying charge must be made to an appropriate subaccount of FERC Account No. 419 (Interest and Dividend Income) or FERC Account No. 431 (Other Interest Expense).

     3.  All carrying charges must be recorded in a separate subaccount entitled Carrying Charge for Recovery of Variable Interest Expense or Dividends.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)

      NAC 704.221  Limit on recovery of debit balance in subaccount for deferred variable interest expense. (NRS 703.025, 704.210, 704.324)  The recovery of a debit balance in the subaccount for the deferred variable interest expense must be limited to the most recently authorized Nevada jurisdictional rate of return adjusted for the changes in the weighted average variable interest or dividend rate for the specific operation of the utility. If the Nevada jurisdictional rate of return submitted for a utility’s operating department exceeds the most recently adjusted authorized rate of return for the utility, an amount equal to the amount which exceeds the utility’s last authorized rate of return or the balance in the subaccount of FERC Account No. 186, whichever is less, must be written off to the appropriate interest expense account.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.222  Effective date of change in rate. (NRS 703.025, 704.210, 704.324)  The changes in rates authorized by NAC 704.218 and 704.219 are effective at the same time as a change in the rates resulting from a general rate case, an annual rate adjustment or a deferred energy accounting adjustment, unless the Commission authorizes a different effective date.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)

ANNUAL REPORTS

      NAC 704.225  Submission; contents. (NRS 703.025, 703.191, 704.210)

     1.  Except as otherwise provided in this subsection, each entity described in subsection 1 of NRS 703.191 shall submit to the Commission an annual report on or before May 15 of the year following the year for which the annual report is filed. A telecommunication provider is not required to submit an annual report pursuant to this section and shall submit an annual report pursuant to NAC 704.7483.

     2.  An entity submitting an annual report pursuant to subsection 1 shall include in the annual report:

     (a) A statement of income;

     (b) A balance sheet;

     (c) A statement of intrastate revenue;

     (d) The number of customers served by the entity; and

     (e) Any additional information requested by the Commission pursuant to subsection 3.

     3.  The Commission may request that an entity submitting an annual report pursuant to subsection 1 include in the annual report any additional information that the Commission deems necessary for inclusion in the annual report.

     (Added to NAC by Pub. Utilities Comm’n by R062-07, eff. 10-31-2007; A by R011-15, 10-27-2015)

REPORTS OF ACCIDENTS

      NAC 704.228  Definitions. (NRS 703.025, 704.190, 704.210)  As used in NAC 704.228 to 704.250, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.230, 704.231 and 704.232 have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

     NAC 704.230  “Accident” defined. (NRS 703.025, 704.190, 704.210)

     1.  “Accident” means:

     (a) Any occurrence or condition directly or indirectly arising from or connected with the maintenance or operation of the premises, plant, instrumentality, or facilities of any public utility which has resulted in:

          (1) The loss of human life;

          (2) Injury to a person requiring inpatient hospitalization; or

          (3) Estimated property damage to utility facilities or to the property of others, or both, in the amount of $50,000 or more; and

     (b) For a gas utility, in addition to any occurrence or condition described in paragraph (a):

          (1) An evacuation:

               (I) Initiated by the personnel of the gas utility or by emergency response personnel;

               (II) Confirmed by the personnel of the gas utility through the use of a device capable of detecting and measuring the concentration of gas in the air;

               (III) Caused by the release of gas from the gas utility’s pipeline; and

               (IV) That results in a gas concentration reading inside the evacuated structure of greater than 1 percent natural gas in air or greater than 0.5 percent liquid propane gas in air, or a gas concentration reading outside of the base of the evacuated structure of greater than 2 percent natural gas in air or greater than 1 percent liquid propane gas in air;

          (2) Damage incurred to a pipeline that requires an immediate pressure reduction, repair or replacement of a pipeline section that was operating at a pressure of more than 100 pounds per square inch; or

          (3) An event that causes the pressure in a pipeline section to rise above its maximum allowable operating pressure plus twice the build-up allowed for operation of pressure-limiting or control devices.

     2.  The term does not include a motor vehicle accident unless the motor vehicle accident causes damages that otherwise meet the requirements of this section to the premises, plant, instrumentality or facilities of a public utility.

     [Pub. Service Comm’n, Gen. Order 19 Rules 102 & 103, eff. 6-9-77]—(NAC A by Pub. Utilities Comm’n by R084-10, 12-16-2010)

      NAC 704.231  “Estimated property damage” defined. (NRS 703.025, 704.190, 704.210)  “Estimated property damage” means all costs related to an accident, including, but not limited to:

     1.  Labor;

     2.  Materials;

     3.  Transportation;

     4.  Temporary paving repair; and

     5.  Lost commodity.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.232  “Pipeline” defined. (NRS 703.025, 704.190, 704.210)  “Pipeline” has the meaning ascribed to it in 49 C.F.R. § 191.3, as adopted by reference in NAC 704.460.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.235  Exemptions. (NRS 703.025, 704.190, 704.210)  The provisions of NAC 704.228 to 704.250, inclusive, do not apply to any common carrier engaged in the transportation of passengers or property by rail, except that:

     1.  The railroads shall provide the Commission with immediate telephonic notice of an accident involving the loss of human life; and

     2.  The railroads shall furnish to the Commission copies of accident or incident reports filed with the Federal Railroad Administration pursuant to regulations issued under the Federal Railroad Safety Act of 1970 and the Accidents Reports Act.

     [Pub. Service Comm’n, Gen. Order 19 Rule 104, eff. 6-9-77]—(NAC A by Pub. Utilities Comm’n by R084-10, 12-16-2010)

      NAC 704.240  Initial report: Submission; designated employee. (NRS 703.025, 704.190, 704.210)

     1.  At the earliest practicable moment following the discovery of an accident, but not later than 4 hours after discovery, a public utility shall submit an initial report of the accident to the person designated by the Regulatory Operations Staff of the Commission to receive such reports. The initial report must be submitted by telephone, electronic mail or a web-based reporting system established by the Regulatory Operations Staff of the Commission.

     2.  Each utility shall have at least one employee designated to report accidents and, in the event that all designated employees are unavailable, shall designate a substitute.

     3.  As used in this section, “discovery” means whenever any employee designated by the utility to report accidents to the Commission first obtains knowledge of an accident and has determined that the criteria for an accident have been satisfied.

     [Pub. Service Comm’n, Gen. Order 19 Rules 106 & 107, eff. 6-9-77]—(NAC A by Pub. Utilities Comm’n by R084-10, 12-16-2010)

      NAC 704.245  Initial report: Contents; confidentiality. (NRS 703.025, 704.190, 704.210)

     1.  The initial report required by NAC 704.240 must include the following information to the extent that the information is available to the employee of the utility making the initial report:

     (a) The name and principal business address of the utility.

     (b) The name and position of the employee of the utility making the report.

     (c) The estimated date and time of the accident.

     (d) The date and time of the discovery of the accident by the utility.

     (e) The approximate location of the accident.

     (f) A description of the accident.

     (g) The approximate number of fatalities or injuries.

     (h) A description of the apparent cause of the accident.

     (i) The estimated number of structures evacuated.

     (j) The estimated number of persons evacuated.

     (k) The estimated number of customers affected by any service outage. If the accident results in a significant service outage as defined in NAC 704.2565, the utility shall also supply all the information required in NAC 704.258 not otherwise required by this section.

     (l) A description of property damage which has occurred, or which may be anticipated, as a result of the accident.

     (m) A description of the steps being taken or contemplated by the utility to prevent further property damage or personal injury from occurring.

     (n) Any additional information deemed necessary to apprise the Regulatory Operations Staff of the Commission properly of the details of the accident.

     (o) The names and telephone numbers of the personnel of the utility who may be contacted if further information regarding the accident is required.

     2.  All information in the initial report must receive confidential treatment. The utility shall provide a general description and approximate location of the accident for public dissemination.

     [Pub. Service Comm’n, Gen. Order 19 Rule 108, eff. 6-9-77]—(NAC A by Pub. Utilities Comm’n by R084-10, 12-16-2010)

      NAC 704.250  Submission of final report and additional information; rescission of initial report. (NRS 703.025, 704.190, 704.210)

     1.  A utility shall submit a final report of each accident to the Commission within 30 calendar days after submitting the initial report required by NAC 704.240.

     2.  Except as otherwise provided in subsection 3, a utility shall submit the final report on the form entitled “Public Utility Accident Report,” which is available from the Commission.

     3.  A gas utility whose accident results in a notification to the United States Department of Transportation shall submit the final report on the form prescribed for a gas distribution pipeline system incident report (Form PHMSA F 7100.1) or the form prescribed for a gas transmission and gathering systems incident report (Form PHMSA F 7100.2) by the Pipeline and Hazardous Materials Safety Administration of the United States Department of Transportation.

     4.  If any of the information required is not readily available to the utility at the time the final report is submitted to the Commission, the utility shall briefly explain its reasons and shall submit the additional information to the Commission as soon as it becomes available to the utility.

     5.  If the information required has not been submitted to the Commission within 3 months after the date of the final report, the utility shall submit a status report in writing to the Commission setting forth the actions taken or contemplated by the utility to obtain the information and the estimated date of submission of the information. Status reports must be submitted by the utility at 3-month intervals until all of the information has been submitted to the Commission.

     6.  If the utility determines after further investigation that the incident was not an accident, the utility shall submit a rescission of the initial report to the Regulatory Operations Staff of the Commission within 7 calendar days after the discovery of the nature of the incident and in the same manner in which the utility notified the Commission of the incident. The rescission shall include an explanation of the basis for the rescission.

     [Pub. Service Comm’n, Gen. Order 19 Rule 109, eff. 6-9-77]—(NAC A by Pub. Utilities Comm’n by R084-10, 12-16-2010)

REPORTS OF SIGNIFICANT SERVICE OUTAGES

      NAC 704.2555  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.2555 to 704.2595, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.256 and 704.2565 have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.256  “Pipeline” defined. (NRS 703.025, 704.210)  “Pipeline” has the meaning ascribed to it in 49 C.F.R. § 191.3, as adopted by reference in NAC 704.460.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.2565  “Significant service outage” defined. (NRS 703.025, 704.210)  “Significant service outage” means:

     1.  For an electric utility, a forced outage of at least 3,000 customer hours or any outage lasting more than 10 hours that affects at least 50 customers.

     2.  For a public utility that provides telecommunication services, is a competitive supplier that owns, operates, leases or otherwise utilizes facilities in Nevada and has more than 20,000 access lines, any outage lasting more than 30 minutes that:

     (a) In a city whose population is 20,000 or more or in an unincorporated area of a county if the population of the entire unincorporated area of the county is 20,000 or more, potentially affects at least 300,000 user minutes of telecommunication service in Nevada as defined in 47 C.F.R. § 4.7(e);

     (b) In a city whose population is less than 20,000 or in an unincorporated area of a county if the population of the entire unincorporated area of the county is less than 20,000, potentially affects at least 30,000 user minutes of telecommunication service in Nevada as defined in 47 C.F.R. § 4.7(e);

     (c) Potentially affects at least 667 OC3 minutes in Nevada as defined in 47 C.F.R. § 4.7(d);

     (d) Potentially affects any special offices and facilities in Nevada as defined in 47 C.F.R. § 4.5(a) to (d), inclusive; or

     (e) Potentially affects a 911 special facility in Nevada as defined in 47 C.F.R. § 4.5(e).

     3.  For a public utility which provides telecommunication services and which is a small-scale provider of last resort, any outage lasting more than 30 minutes that:

     (a) Potentially affects at least 30,000 user minutes of telecommunication service in Nevada as defined in 47 C.F.R. § 4.7(e);

     (b) Potentially affects at least 250 OC3 minutes in Nevada as defined in 47 C.F.R. § 4.7(d);

     (c) Potentially affects any special offices and facilities in Nevada as defined in 47 C.F.R. § 4.5(a) to (d), inclusive; or

     (d) Potentially affects a 911 special facility in Nevada as defined in 47 C.F.R. § 4.5(e).

     4.  For a water utility, any unscheduled outage resulting in water pressure of less than 5 pounds per square inch in any water distribution main that affects service to 50 or more customers or lasts more than 6 hours.

     5.  For a gas utility, any unplanned outage that results in the interruption of service to 10 or more active customer accounts.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010; A by R030-18, 8-30-2018)

      NAC 704.257  Annual certification of population by Commission. (NRS 703.025, 704.210)  For the purposes of subsection 2 of NAC 704.2565, the Commission will annually certify the population of:

     1.  Each city in this State; and

     2.  The entire unincorporated area of each county in this State.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.2575  Initial report: Submission; designated employee. (NRS 703.025, 704.210)

     1.  At the earliest practicable moment following the discovery of a significant service outage, but not later than 4 hours after discovery, a utility shall submit an initial report of the significant service outage to the person designated by the Regulatory Operations Staff of the Commission to receive such reports. The initial report shall be submitted by telephone, electronic mail or a web-based reporting system established by the Regulatory Operations Staff of the Commission.

     2.  Each utility shall have at least one employee designated to report significant service outages and, in the event that all designated employees are unavailable, shall designate a substitute.

     3.  As used in this section, “discovery” means whenever any employee designated by the utility to report significant service outages to the Commission first obtains knowledge of a significant service outage and has determined that the criteria for a significant service outage have been satisfied.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.258  Initial report: Contents; confidentiality. (NRS 703.025, 704.210)

     1.  The initial report required by NAC 704.2575 must include the following information to the extent that the information is available to the representative of the utility making the initial report:

     (a) The name and principal business address of the utility.

     (b) The name and position of the representative of the utility making the initial report.

     (c) The approximate geographic area affected by the significant service outage.

     (d) The estimated number of customers affected by the significant service outage.

     (e) The approximate date, time and duration of the significant service outage.

     (f) The date and time of discovery of the significant service outage.

     (g) The apparent cause of the significant service outage.

     2.  All information in the initial report must receive confidential treatment. The utility shall provide an approximate geographic area and estimated number of customers affected by the significant service outage for public dissemination.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.2585  Submission of final report and additional information; rescission of initial report. (NRS 703.025, 704.210)

     1.  A utility shall submit a final report of each significant service outage to the Commission within 30 calendar days after submitting the initial report required by NAC 704.2575.

     2.  A utility shall submit the final report on the form entitled “Public Utility Significant Service Outage Report,” which is available from the Commission.

     3.  If any of the information required is not readily available to the utility at the time the final report is submitted to the Commission, the utility shall briefly explain its reasons and shall submit the additional information to the Commission as soon as it becomes available to the utility.

     4.  If the information required has not been submitted to the Commission within 3 months after the date of the final report, the utility shall submit a status report in writing to the Commission setting forth the actions taken or contemplated by the utility to obtain the information and the estimated date of submission of the information. Status reports must be submitted by the utility at 3-month intervals until all of the information has been submitted to the Commission.

     5.  If the utility determines after further investigation that the service outage was not a significant service outage, the utility shall submit a rescission of the initial report to the Regulatory Operations Staff of the Commission within 7 calendar days after the discovery of the nature of the service outage and in the same manner in which the utility notified the Commission of the service outage. The rescission shall include an explanation of the basis for the rescission.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.259  Electric utilities: Quarterly reports. (NRS 703.025, 704.210)

     1.  An electric utility shall submit a quarterly report to the Regulatory Operations Staff of the Commission within 90 days after the end of each calendar year quarter for all service outages, including, without limitation, a significant service outage, which occurred in that calendar year quarter.

     2.  The quarterly report must include the following information for each service outage:

     (a) The geographic area of the service outage;

     (b) The number of customers affected by the service outage;

     (c) The date, time and duration of the service outage; and

     (d) The cause of the service outage.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.2595  Water utilities: Notification of certain scheduled maintenance. (NRS 703.025, 704.210)

     1.  A water utility shall notify the Regulatory Operations Staff of the Commission by telephone or electronic mail, or both, at least 24 hours before any scheduled maintenance that will:

     (a) Last more than 6 hours; or

     (b) Result in water pressure of less than 5 pounds per square inch in any water distribution main and affect service to 50 or more customers.

     2.  The notification required pursuant to subsection 1 must include:

     (a) The hours during which service will be interrupted;

     (b) The time on which service will be restored; and

     (c) The number of customers to be affected by the scheduled maintenance.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

DISCLOSURES TO CUSTOMERS BY CERTAIN ELECTRIC UTILITIES

      NAC 704.2761  Definitions. (NRS 703.025, 704.210, 704.763)  As used in NAC 704.2761 to 704.2787, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.2763 to 704.2777, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2763  “Biofuel” defined. (NRS 703.025, 704.210, 704.763)  “Biofuel” means any alcohol, ether, ester or other chemical compound made from herbaceous plants, woody plants or organic waste.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2765  “Biomass” defined. (NRS 703.025, 704.210, 704.763)  “Biomass” has the meaning ascribed to it in NRS 704.007.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2767  “Electric utility” defined. (NRS 703.025, 704.210, 704.763)  “Electric utility” has the meaning ascribed to it in NRS 704.187.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2769  “Excluded sale” defined. (NRS 703.025, 704.210, 704.763)  “Excluded sale” means electricity that an electric utility sells to any person or entity other than its retail customers in this State.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2771  “Generation asset” defined. (NRS 703.025, 704.210, 704.763)  “Generation asset” means any plant, facility, equipment or system which is located within or outside this State and which converts nonelectrical energy into electrical energy or otherwise produces electrical energy.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2773  “Heavy metal” defined. (NRS 703.025, 704.210, 704.763)  “Heavy metal” means any heavy metal which is released in quantities that must be reported to the United States Environmental Protection Agency pursuant to 42 U.S.C. § 11023 and 40 C.F.R. Part 372.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2775  “Native generation” defined. (NRS 703.025, 704.210, 704.763)

     1.  “Native generation” means electricity which is generated from a generation asset that is owned by or under contract to an electric utility.

     2.  The term does not include purchased power.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2777  “Purchased power” defined. (NRS 703.025, 704.210, 704.763)  “Purchased power” means electricity that an electric utility purchases from another person or entity pursuant to a purchase agreement.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2783  Distribution and formatting of disclosure statements. (NRS 703.025, 704.210, 704.763)

     1.  On a semiannual basis before the close of the billing cycles for January and July of each calendar year, each electric utility shall provide to its retail customers a disclosure statement that discloses the information required by NAC 704.2785 and 704.2787.

     2.  Each electric utility shall:

     (a) Include the disclosure statement as an insert to the bills that the electric utility sends to its retail customers; and

     (b) If the electric utility maintains a website on the Internet or any successor to the Internet, post the disclosure statement on that website.

     3.  The information disclosed in the disclosure statement must be presented in a type size that is not smaller than 10-point type.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2785  Contents of disclosure statement: Information relating to certain sales, energy sources and emissions. (NRS 703.025, 704.210, 704.763)

     1.  The disclosure statement must disclose:

     (a) The total number of megawatt-hours sold by the electric utility to retail customers in this State, which must be calculated by taking the sum of native generation and purchased power and reducing that sum by excluded sales; and

     (b) For each energy source, the number of megawatt-hours generated from the energy source and the percentage that those megawatt-hours constitute of the total number of megawatt-hours sold by the electric utility to retail customers in this State. The energy sources must be identified in the disclosure statement as follows:

          (1) Coal.

          (2) Natural gas.

          (3) Oil.

          (4) Hydroelectric.

          (5) Geothermal.

          (6) Solar.

          (7) Nuclear.

          (8) Wind.

          (9) Biofuel.

          (10) Biomass.

          (11) Other. The number of megawatt-hours generated from other energy sources must be calculated and disclosed in an aggregate amount. Each energy source contributing to the aggregate amount must be specified in the disclosure statement.

     2.  For the purposes of subsection 1, the electric utility shall consider:

     (a) Its native generation to be consumed by its retail customers in this State, unless the electric utility identifies specific amounts of its native generation as part of its excluded sales;

     (b) Its excluded sales to be generated by an average mix of the energy sources used for its native generation; and

     (c) Its purchased power to be generated by an average mix of the energy sources used to generate electricity in the region consisting of Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming, unless the electric utility identifies specific amounts of its purchased power that are generated from specific energy sources.

     3.  The disclosure statement must disclose the average emissions of each of the following substances, as measured in pounds per megawatt-hour sold by the electric utility to retail customers in this State:

     (a) High-level radioactive waste.

     (b) Sulfur dioxide.

     (c) Carbon dioxide.

     (d) Carbon monoxide.

     (e) Particulate matter.

     (f) Volatile organic compounds.

     (g) Oxides of nitrogen.

     (h) Heavy metals.

     (i) Any other substances which the Commission, in cooperation with the Division of Environmental Protection of the State Department of Conservation and Natural Resources, determines may cause a significant health or environmental impact and for which sufficiently accurate and reliable data is available.

     4.  For the purposes of subsection 3, the electric utility shall consider:

     (a) Its native generation to be consumed by its retail customers in this State, unless the electric utility identifies specific amounts of its native generation as part of its excluded sales;

     (b) The emissions attributable to its excluded sales to be an average mix of the emissions attributable to its native generation; and

     (c) The emissions attributable to its purchased power to be an average mix of the emissions attributable to generation of electricity in the region consisting of Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming, unless the electric utility identifies specific emissions attributable to specific amounts of its purchased power.

     5.  The information disclosed in the disclosure statement pursuant to this section must be based upon data taken from a 12-month period that ends not more than 6 months before the date on which the electric utility first releases the disclosure statement to its retail customers.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2787  Contents of disclosure statement: Information relating to certain products, services and programs. (NRS 703.025, 704.210, 704.763)

     1.  The disclosure statement must, without limitation:

     (a) Provide a summary of any programs and information relating to energy conservation that is offered by the electric utility;

     (b) Describe the procedures for enrolling in the equal payment plan or for making alternative payment arrangements with the electric utility;

     (c) Describe any energy programs that provide assistance to retail customers with low incomes and explain how to apply for assistance from such programs;

     (d) Identify any other energy programs which may provide assistance to retail customers and which are operated by the electric utility or by other sources known to the electric utility, including, without limitation, federal, state and local governments; and

     (e) Contain information about the safe disposal and recycling of electronic waste, electrical systems and other waste, including, without limitation, compact fluorescent light bulbs.

     2.  The disclosure statement may include any other information about electric services, and any products and services relating thereto, that are being provided to or purchased for retail customers by the electric utility.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002; A by R170-09, 7-22-2010)

ADVERTISING BY CERTAIN ELECTRIC AND GAS UTILITIES

      NAC 704.280  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.280 to 704.295, inclusive, unless the context otherwise requires:

     1.  “Advertising” means the commercial use of any medium, including the newspaper, radio or television, or printed matter, by a utility to transmit a message to its customers or to a substantial number of members of the public.

     2.  “Political advertising” means any advertising whose purpose is to influence public opinion with respect to any legislative, administrative, or electoral matter or any controversial issue of public importance.

     3.  “Promotional advertising” means any advertising whose purpose is to encourage persons to select, use, or add the service of a utility or to select or install any appliance or equipment designed to use the utility’s service.

     [Pub. Service Comm’n, Gen. Order 28 § 2.0, eff. 8-21-81]

      NAC 704.285  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.280 to 704.295, inclusive, apply to all utilities which provide electric or gas service.

     [Pub. Service Comm’n, Gen. Order 28 § 1.2, eff. 8-21-81]

 

      NAC 704.290  Promotional or political advertising. (NRS 703.025, 704.210)  No utility which provides electric or gas service may recover from any person other than its shareholders or other owners any of its expenditures, whether direct or indirect, for promotional or political advertising.

     [Pub. Service Comm’n, Gen. Order 28 § 3.1, eff. 8-21-81]

      NAC 704.295  Exemptions. (NRS 703.025, 704.210)  The provisions of NAC 704.280 to 704.295, inclusive, do not apply to:

     1.  Advertising which informs customers how they can conserve energy or reduce peak demand for energy.

     2.  Advertising required by law, including, without limitation, advertising required by NRS 704.763 and NAC 704.2761 to 704.2787, inclusive.

     3.  Advertising regarding interruptions in service, safety measures or emergency conditions.

     4.  Advertising concerning opportunities for employment with a utility.

     5.  Any explanation of or justification for existing or proposed rate schedules, or notifications of hearings thereon.

     [Pub. Service Comm’n, Gen. Order 28 § 3.2, eff. 8-21-81]—(NAC A by Pub. Utilities Comm’n by R145-01, 1-22-2002)

RIGHTS AND OBLIGATIONS OF CUSTOMERS OF CERTAIN ELECTRIC AND GAS UTILITIES

      NAC 704.302  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.302 to 704.390, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.3022 to 704.317, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.3022  “Advanced service delivery meter” defined. (NRS 703.025, 704.210)  “Advanced service delivery meter” means a digital device for measuring usage of electricity in discrete intervals of time which is capable of remotely connecting or disconnecting electric service to a residential customer of an electric utility and which is integrated into a functional system that is capable of remote connection and disconnection.

     (Added to NAC by Pub. Utilities Comm’n by R035-11, eff. 10-26-2011)

      NAC 704.3023  “Advanced service delivery meter customer” defined. (NRS 703.025, 704.210)  “Advanced service delivery meter customer” means a residential customer of an electric utility who is provided electric service by the electric utility through an advanced service delivery meter.

     (Added to NAC by Pub. Utilities Comm’n by R035-11, eff. 10-26-2011)

      NAC 704.303  “Customer” defined. (NRS 703.025, 704.210)  “Customer” means a person:

     1.  Who receives or applies to receive residential gas or electric service from a utility;

     2.  In whose name such service is or is to be provided, as evidenced by a signature on the application or contract for such service; or

     3.  In whose name such service is or is to be provided, as may be established by other demonstrable evidence that the person requested the utility to provide such service in that person’s name.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.304  “Deposit” defined. (NRS 703.025, 704.210)  “Deposit” means security provided by a customer to ensure payment for service provided by a utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3055  “Division” defined. (NRS 703.025, 704.210)  “Division” means the Division of Consumer Complaint Resolution of the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3065  “Elderly” defined. (NRS 703.025, 704.210)  “Elderly” means a person who is 62 years of age or older.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.307  “Especially dangerous to health” defined. (NRS 703.025, 704.210)  “Especially dangerous to health” means a condition or event likely to cause serious impairment to the health of a person who appears to be unable, without assistance, to manage his or her own resources, carry out the activities of daily living, or protect himself or herself from neglect or a hazardous situation.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.309  “Guarantor” defined. (NRS 703.025, 704.210)  “Guarantor” means a person who assumes liability for the payment of the bill of a customer in an amount not to exceed the appropriate amount of the deposit for the account of the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3105  “Person with a disability” defined. (NRS 703.025, 704.210)  “Person with a disability” means a person who:

     1.  Is affected by any physical or mental disability as described in NRS 615.110 or a substantial impediment to employment as defined in NRS 615.130; or

     2.  Receives disability benefits from the Social Security Administration.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.313  “Rule” defined. (NRS 703.025, 704.210)  “Rule” means a provision, included in the tariff of a utility, which establishes the application of rates, charges, and standards for service and is not included in a rate schedule.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.314  “Satisfactory credit” defined. (NRS 703.025, 704.210)  “Satisfactory credit” means the payment of bills for utility service for 12 consecutive months, without a termination of service and with not more than three payments during that period made after the date of issuance of the next monthly bill. Any history of payment that does not meet these requirements is unsatisfactory credit.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.315  “Termination of service” defined. (NRS 703.025, 704.210)  “Termination of service” means the intentional cessation of service by a utility to a customer which has not been requested by the customer and which occurs pursuant to the tariff of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.316  “Timely payment” defined. (NRS 703.025, 704.210)  Except as otherwise provided in NAC 704.339, “timely payment” means the payment of a bill for service by a customer before the date the bill is past due.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.317  “Utility” defined. (NRS 703.025, 704.210)  “Utility” means a public utility, as defined in NRS 704.020, which furnishes gas or electricity.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.320  Records of utility. (NRS 703.025, 704.210)

     1.  Each utility shall prepare and maintain records for at least 3 years. The records must contain:

     (a) For each of its customers:

          (1) His or her payment performance;

          (2) His or her usage of gas or electric energy for each billing period; and

          (3) The amount of his or her bill for each billing period.

     (b) The number and general description of written complaints filed with the utility.

     (c) The number of terminations and reconnections of service.

     (d) The number of deposits which have been collected and returned.

     2.  Upon the request of the Commission, a utility shall submit to the Commission, in writing, a summary of the information contained in these records relating to a particular customer or customers.

     3.  A utility may not provide any list of the names, addresses, or telephone numbers of its customers, or any related information about its customers, to any other person for commercial purposes.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.321  Terms of agreement with customer. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in this section, a utility may not enter into any agreement with a customer under terms that are inconsistent with the provisions of NAC 704.302 to 704.390, inclusive.

     2.  Notwithstanding the provisions of NAC 704.302 to 704.390, inclusive, a utility may enter into an agreement with a customer under terms that are more favorable to the customer than those provided by NAC 704.302 to 704.390, inclusive, if the more favorable terms are consistent with the tariffs of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.322  Form for complaint by customer. (NRS 703.025, 704.210)  A utility shall make available a standard form to be used by its customers for the purpose of making written complaints to the utility. The form must be available at each office of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.323  Transmittal of information to customers. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  A utility shall send to each of its customers a statement containing a clear and concise explanation of its existing rate schedules which are applicable to the customer. The statement must be sent to each customer:

     (a) At the time the customer makes application for service; and

     (b) In the next bill sent to the customer after any change applicable to that customer is made in a rate schedule, except for quarterly adjustments to its base tariff energy rate and, if applicable, for quarterly adjustments to its deferred energy accounting adjustment for which notice was provided pursuant to subsection 4 or 5 of NAC 704.118.

     2.  On each residential and small commercial customer’s bill, a utility shall include a formula which the customer may use for calculating the amount of the bill. If more than one rate is applicable to a customer during any billing period, the rate used in the formula must be a weighted average of those rates. For the purposes of this subsection, “weighted average” means an average of the applicable rates during a billing period, calculated according to the number of days each rate is in effect.

     3.  Each utility, at the request of a customer, shall send the customer a clear and concise statement of the customer’s actual consumption of gas or electric energy for each billing period during the prior year at the location where service is provided.

     (Added to NAC by Pub. Service Comm’n, 7-31-85, eff. 8-1-85; A 1-5-89; A by Pub. Utilities Comm’n by R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.326  Application for service; provision of range of historical energy use at location of service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2, a customer may make an application for service by mail.

     2.  A customer who is applying for service from a utility for the first time, or who has not received service from the utility during the preceding 2 years, may be required by the utility to apply for service in person unless this will cause undue hardship.

     3.  Upon the request of a customer who has applied for service from a utility, the utility shall provide the customer, or any other person or entity designated by the customer in writing, with a range of historical energy use at the location where service is to be provided to the customer. In providing the information to the customer or the customer’s designee, the utility shall take appropriate measures to protect confidential customer information regarding all prior customers at that location.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.327  Establishment of credit. (NRS 703.025, 704.210)

     1.  A utility may require a customer to establish credit before it furnishes service.

     2.  A customer may establish credit if he or she:

     (a) Submits payment of a cash deposit to ensure the payment of a bill issued to him or her for service;

     (b) Has been a customer of the utility within the preceding 2 years and has established satisfactory credit;

     (c) Has been a customer of another municipal or regulated energy utility within the preceding 2 years and has made timely payment of each bill issued to him or her during the 12 months immediately preceding the request for service; or

     (d) Has otherwise established credit that is acceptable to the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.328  Deposit: Generally. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsections 2 and 3, a deposit for each service provided by a utility must not exceed an amount equal to 150 percent of the estimated average monthly bill of the customer for each such service. Deposits for multiple types of utility service from the same utility must be calculated separately.

     2.  If an elderly customer establishes credit by making a deposit, the deposit must not exceed 50 percent of the deposit established pursuant to subsection 1.

     3.  If service to a customer has been terminated, the deposit required by the utility for resumption of service must not exceed an amount equal to 150 percent of the estimated average monthly bill of the customer for service to be resumed.

     4.  A utility may require:

     (a) An elderly customer who has had a termination of service or made four or more payments after the issuance of the next monthly bill within a 12-month period to provide the remaining 50 percent of the deposit.

     (b) A customer, who has not been required to provide a deposit, to provide a deposit once the customer’s credit has become unsatisfactory.

     5.  By posting a deposit, the customer agrees that the deposit is a pledge to make future payments to the utility and not payment for future services that are furnished by the utility.

     6.  A utility may apply a deposit to any amounts outstanding at the time service is terminated or discontinued at the request of the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.329  Deposit: Alternatives. (NRS 703.025, 704.210)

     1.  A utility may not require a customer to provide a deposit if the customer:

     (a) Has established satisfactory credit with the utility or any other municipal or regulated energy utility;

     (b) Uses a guarantor with satisfactory credit; or

     (c) Receives benefits from a retirement plan or the Social Security Administration, unless the customer has had a termination of service or has made four or more payments after the issuance of the next monthly bill within a 12-month period.

     2.  A utility:

     (a) Shall provide, at the request of a customer, a form to request the customer’s credit history from another utility or to verify employment.

     (b) May not require a customer to use a guarantor to begin service.

     3.  A utility may, in determining whether a customer will be required to provide a deposit, consider:

     (a) Whether the customer has been continuously employed with his or her employer for at least 1 year;

     (b) The payment history if the previous service was not in the name of the customer, if the customer is newly divorced or separated and is seeking service in his or her own name; and

     (c) Any other factors set forth in the tariff of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.330  Deposit: Additional amount. (NRS 703.025, 704.210)

     1.  A utility may require a customer who is subject to the termination of service and who requests the resumption or continuation of service to provide a deposit in addition to any other deposit made by the customer pursuant to NAC 704.328 only if the initial deposit has been returned to the customer or more than one-half of the deposit has been applied to the account of the customer. In no event may the amount of a deposit held by a utility exceed the amounts specified in NAC 704.328.

     2.  If a utility requires a customer to provide a deposit pursuant to subsection 1, the deposit may be combined with any arrearage, and the customer may pay the deposit and the arrearage pursuant to an agreement for deferred payment in accordance with NAC 704.341.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.331  Deposit: Notification of requirement. (NRS 703.025, 704.210)  A utility shall notify the customer after the third late payment that a deposit will be required after the fourth late payment if the utility wishes to require a deposit pursuant to:

     1.  Paragraph (a) of subsection 4 of NAC 704.328;

     2.  Paragraph (c) of subsection 1 of NAC 704.329.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.332  Deposit: Payment in installments. (NRS 703.025, 704.210)

     1.  A customer who is required to pay a deposit must be permitted to enter into a written agreement with the utility for payment of the deposit in installments.

     2.  Except as otherwise provided in NAC 704.341, if such an agreement is entered into:

     (a) The customer may be required to pay:

          (1) An amount equal to at least one-third of the deposit, if it is more than $50, before service is provided;

          (2) The remainder of the deposit, in not more than two equal installments, not later than 30 and 60 days, respectively, after the date of the agreement; and

          (3) Interest, at a rate set forth in the tariff of the utility, on the unpaid portion of the deposit.

     (b) The service of the customer may be terminated without notice for any failure to pay the deposit as agreed and, in such a case, the customer may be required to pay the full amount of the deposit, plus any other money owed the utility, before service is restored.

     (c) The agreement must:

          (1) Specify the date on which each installment is due; and

          (2) Contain a statement of the provisions of this section. The right of the utility to terminate the service of the customer for any failure to pay the deposit must be stated in boldface type.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.333  Deposit: Return. (NRS 703.025, 704.210)  A utility shall return any deposit paid by a customer if he or she has made timely payments for 12 consecutive months.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.334  Guarantors. (NRS 703.025, 704.210)

     1.  A guarantor must be a customer of the utility providing service to the customer for whom the guarantor is acting.

     2.  The liability of a guarantor is limited to the amount of the deposit that the customer otherwise would have been required to pay and ceases after the date the deposit otherwise would have been required to be returned.

     3.  A guarantor who is required to make any payment for a customer may pay the amount owed within a period of not more than 3 months. If payment is not made within that period, the utility may terminate service to the guarantor without notice.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.336  Basis and contents of bill for service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in NAC 704.337, each bill for service issued by a utility must be based upon a reading of the meter of the customer or the applicable flat rate.

     2.  Each bill for service must include:

     (a) Any previous balance;

     (b) The amount due for service provided during the current billing period, with the date upon which this amount is past due;

     (c) Any approved charge for late payment of a bill, with the date upon which that charge begins to accrue;

     (d) The customer charge;

     (e) The fuel adjustment cost and gas adjustment cost;

     (f) Any other authorized fee, charge, or tax;

     (g) Any unregulated charge;

     (h) The total of the preceding amounts;

     (i) The meter readings for the first and last day of the billing period;

     (j) The quantity of gas or electric energy consumed;

     (k) The date the meter was read;

     (l) The next date the meter will be read;

     (m) The summary of the provisions of NAC 704.346 required by subsection 4 of that section; and

     (n) The telephone number and address of the office of the utility where a customer may obtain information concerning his or her bill or the service provided.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.337  Billing based upon estimated usage. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 4, if a utility is unable, because of circumstances beyond its control, to read the meter of a customer on the date scheduled, it may bill the customer based upon the customer’s estimated usage for the billing period.

     2.  For the purposes of this section, circumstances beyond the control of a utility include:

     (a) Severe weather;

     (b) The presence of an animal on the premises of the customer which prevents an employee of the utility from reading the meter without risk of injury; or

     (c) Any other circumstance which makes it unreasonably difficult to read the meter.

     3.  A utility shall consider the following factors in calculating a bill based upon estimated usage:

     (a) The usage of the customer during the same month of the preceding year;

     (b) Any change in temperature from the preceding month;

     (c) The usage during the preceding month; and

     (d) Seasonal load factors.

     4.  A utility which issues three consecutive bills to a customer based upon estimated usage, or five such bills for a customer in the area surrounding Lake Tahoe, shall notify the customer of its right of access to the premises of the customer. Thereafter, any additional and consecutive bill based upon estimated usage may be issued only under extraordinary circumstances.

     5.  A utility shall:

     (a) Adjust the estimated usage upon the first reading of a meter after an estimated reading;

     (b) Print the word “estimate” plainly on each bill which is based upon estimated usage; and

     (c) Notify customers of its right to issue bills based upon estimated usage.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.338  Program for equalized billing for service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in this section, a utility shall offer a program of equalized billing to any customer whose utility service is connected at the time the request is made.

     2.  If a customer requests to enter into the program of equalized billing and the customer has an arrearage when the request is made, the customer may not enter into the program unless the customer:

     (a) Pays at least 50 percent of the arrearage upon entering into the program; and

     (b) Agrees to pay, in amounts that are apportioned over the first year of participation in the program, the remaining arrearage.

     3.  If a customer enters into the program of equalized billing, the equalized billing must be calculated by dividing the total amount of estimated bills for 1 year by the number of monthly payments for that year. The utility shall, at least once each year, adjust the monthly payments to conform to the actual bills.

     4.  A utility may not adjust the amount of an equalized bill because of a change in rates before the rates become effective.

     5.  If a customer fails to make two or more consecutive timely payments while participating in the program of equalized billing, the utility may, in addition to any other rights and remedies available to the utility, remove the customer from the program. If the utility removes the customer from the program, the customer may not enter into the program again without the approval of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.339  Billing and payment for service. (NRS 703.025, 704.210)

     1.  A utility shall deliver a bill to a customer:

     (a) By depositing the bill with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the billing address of the customer;

     (b) By another means of delivery of the bill to the billing address of the customer; or

     (c) If requested by the customer and within the capability of the utility, by sending an electronic bill via the Internet to the electronic address of the customer. The electronic bill must contain the same content and be presented in the same or a similar format as a bill delivered to the customer pursuant to paragraph (a).

     2.  A bill for service issued by a utility is due:

     (a) Upon deposit of the bill with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the billing address of the customer;

     (b) In the case of delivery by another means, upon delivery of the bill to the billing address of the customer; or

     (c) In the case of delivery via the Internet, upon sending the electronic bill via the Internet to the electronic address of the customer.

     3.  A customer may pay the bill:

     (a) By depositing payment in the form of a check or money order with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the appropriate address of the utility;

     (b) By making payment at the business office of the utility using cash, a check, a money order, a credit card, a debit card, an electronic check or, if authorized by the utility, some other form of electronic fund transfer;

     (c) By making payment to any person authorized by the utility to accept payment using cash, a check, a money order, a credit card, a debit card, an electronic check or, if authorized by the utility, some other form of electronic fund transfer; or

     (d) By making payment through a bank-by-phone system or, if authorized by the utility, by making payment through a payment terminal, an automatic withdrawal system or another system that allows for electronic fund transfers.

     4.  A utility shall authorize at least one system of payment that allows customers to make payments to the utility via the Internet.

     5.  The past due date for a bill may not be earlier than 15 days after the date that the bill is due pursuant to subsection 2.

     6.  If a utility has the capability to allow a customer to choose the past due date for each billing cycle, the utility shall:

     (a) On an annual basis, notify customers that they have such a choice; and

     (b) Upon the request of a customer, allow the customer to make such a choice.

     7.  If a utility does not have the capability described in subsection 6, the utility shall, upon the request of a customer and to the extent practicable, work with the customer to establish by mutual agreement the past due date for each billing cycle.

     8.  If the last day for payment before the past due date falls on a Sunday, legal holiday or any other day on which the office of a utility used for the payment of bills is closed, the last day for payment is the next business day. Except as otherwise provided in subsection 9, payment of a bill by first-class mail is timely if the payment is received not more than 4 days after the past due date.

     9.  Any arrearage contained in a bill for service is past due and should be paid at the business office of the utility.

     10.  A utility may charge a customer a fee, as set forth in its tariff, for:

     (a) The return of an unpaid check.

     (b) The late payment of a bill.

     (c) The use of a credit card to make a payment to the utility. The utility shall not charge the customer a fee for the use of a credit card to make a payment to the utility or enter into an agreement with a third-party credit card service which charges the customer such a fee, unless the fee has been reviewed and approved by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.341  Program for deferred payment of delinquent bill. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in this section and NAC 704.338, a utility shall provide a program for the deferred payment of a delinquent bill for any customer who requests the program and agrees in writing to pay:

     (a) The arrearage within 90 days after the execution of the agreement, in four equal payments, with the first payment to be made upon the execution of the agreement; and

     (b) All future bills when due.

Ê The 90-day period otherwise provided for payment of the arrearage may be extended at the discretion of the utility.

     2.  If a customer who enters into an agreement for the deferred payment of an arrearage is required to pay a deposit as a condition of continuing or resuming service and:

     (a) The customer’s service has not been terminated because of the failure to comply with an existing agreement for deferred payment; or

     (b) The customer is entering into the agreement pursuant to subsection 3,

Ê the deposit and the arrearage must be included in the agreement and must be paid within 120 days, in four equal payments, with the first payment to be made upon the execution of the agreement.

     3.  If a governmental agency or another entity that provides energy assistance to lower-income customers pledges or pays money on behalf of a customer who has an arrearage, the utility shall allow the customer to enter into an agreement for the deferred payment of the remaining arrearage and any deposit owed by the customer, regardless of whether the customer has entered into any other prior agreements for deferred payment pursuant to this section.

     4.  Except as otherwise provided in subsection 3, a customer may not enter into an agreement for deferred payment pursuant to this section more than once during any 11-month period, unless the utility agrees otherwise.

     5.  The utility may terminate service to a customer who enters into an agreement for deferred payment pursuant to this section for any failure by the customer to make payment as provided by the agreement, if:

     (a) The remaining arrearage is $50 or more; and

     (b) The utility sends written notice of its intended action to the customer at least 48 hours before it terminates service.

     6.  Each agreement for deferred payment entered into pursuant to this section must:

     (a) Specify the date on which each installment is due; and

     (b) Contain a statement, in boldface type, of the right of the utility to terminate service to the customer, upon 48-hours’ notice, for any failure by the customer to make payment as provided by the agreement.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

      NAC 704.342  Program to pay bills of customers under financial hardship; coordination with other entities providing assistance to lower-income customers. (NRS 703.025, 704.210)

     1.  A utility shall provide a program for the payment of bills for customers who have difficulty paying their bills because of financial hardship.

     2.  A utility shall coordinate with governmental agencies and other entities that provide energy assistance to lower-income customers and with governmental agencies and other entities that provide services for weatherization and energy efficiency to lower-income customers to enable such agencies and entities to administer efficiently and effectively their assistance and services to lower-income customers.

     3.  A utility shall disclose to the agencies and entities described in subsection 2 information concerning the energy use of a customer, if the customer signs a release authorizing the utility to disclose that information.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.3425  Visits for service and repair. (NRS 703.025, 704.210)

     1.  If a customer is required to be present at a location for a service or repair visit by a utility, the utility shall arrange with the customer, by mutual agreement:

     (a) A 4-hour time span during which the visit will be scheduled; or

     (b) An alternate method of entry to the location.

     2.  If a service or repair employee of the utility is unable to arrive at the customer’s location during the time span scheduled with the customer pursuant to subsection 1, the utility shall use its best efforts to provide telephonic notice to the customer.

     (Added to NAC by Pub. Utilities Comm’n by R198-01, eff. 2-17-2005)

      NAC 704.343  Testing meters for accuracy. (NRS 703.025, 704.210)

     1.  Each utility shall provide or have access to a facility to determine the accuracy of its meters. A utility shall test the meter of a customer upon his or her request.

     2.  No charge may be made for performing a test once during any 12-month period. A utility may charge the customer a fee, as set forth in its tariff, for any additional test conducted during that period.

     3.  The customer may be present and may request that a qualified representative of the Commission be present at the time a test is conducted.

     4.  If a meter is tested at the request of a customer, the utility shall, within a reasonable time after the test:

     (a) Provide the customer with a written statement of the results of the test; and

     (b) Notify the customer in writing if the meter is replaced or repaired.

     5.  A utility shall prepare and maintain a record of the results of each test conducted pursuant to this section. The record must include:

     (a) The name and address of the customer;

     (b) The number for identification of the meter;

     (c) The type of meter;

     (d) The type of test;

     (e) The date on which the test was conducted;

     (f) The results of the test; and

     (g) A description of any action taken as a result of the test.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.344  Adjustment of bill when meter inaccurate. (NRS 703.025, 704.210)

     1.  If a meter is tested pursuant to NAC 704.343 and is found to be inaccurate by more than 2 percent, the bill for service of any customer affected must be adjusted as provided in this section.

     2.  Except as otherwise provided in subsection 3, if the meter has:

     (a) Under-recorded the usage of gas or electric energy, the adjustment must be made only for the period of the most recent 3 months of usage.

     (b) Over-recorded usage, the adjustment must be made only for the period of the most recent 6 months of usage.

     3.  If the utility establishes that the meter has been tampered with or used without its authorization, the adjustment must be calculated for a period not to exceed the most recent 6 months of usage or the date on which the tampering or unauthorized use began, whichever is greater.

     4.  A customer who, because of an adjustment to his or her bill, owes the utility money for service may pay that amount over a 3-month period.

     5.  The utility shall credit the account of a customer who was overcharged because of an inaccurate meter not later than 30 days after the overcharge is determined.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.346  Resolution of dispute regarding bill, charge or service. (NRS 703.025, 704.210)

     1.  If a customer disputes any bill, charge, or service, the utility shall promptly investigate the matter and report its determination to the customer. If the customer so requests, the report must be made in writing. Whether or not a written report is requested, the utility shall inform the customer of the right to file a complaint with the Division.

     2.  If the customer is not satisfied with the determination made by the utility, the customer may file a complaint with the Division.

     3.  If a complaint is filed, unless the utility agrees to waive the requirement at the request of the Division, the customer may be required by the utility to pay any disputed amount to the utility pending resolution of the complaint.

     4.  A summary of the provisions of this section must be printed on the back of each bill or notice issued by a utility. The summary must include the mailing address, telephone number, and toll-free telephone number of the Division.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.348  Refusal to provide service. (NRS 703.025, 704.210)  Except as otherwise provided in NAC 704.383, a utility may refuse service or refuse to resume service to a customer:

     1.  Until the customer complies with the requirements of the Commission and set forth in the tariff of the utility;

     2.  If the customer has obtained or attempted to obtain service by fraudulent means, unless the conditions constituting the fraud have been corrected; or

     3.  If there exists any of the conditions described in NAC 704.350.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.350  Termination of service: No prior notice. (NRS 703.025, 704.1835, 704.210)  A utility may terminate electric or gas service without prior notice only:

     1.  If an unsafe or hazardous condition related to electric or gas service is found to exist on the customer’s premises;

     2.  If the use of electric or gas service on the customer’s premises is found to be detrimental or damaging to the facilities or services of the utility or its customers;

     3.  Upon the order of any court or the Commission;

     4.  If the acts of the customer or the conditions upon the customer’s premises are such as to indicate to the utility that the customer intends to defraud it;

     5.  If the utility has tried diligently to meet the requirements for notice set forth in NAC 704.360 and 704.365 but has not been able to give such a notice;

     6.  If an event occurs which could not have been reasonably anticipated or controlled and which requires the termination of service;

     7.  If the location where service is provided has been abandoned;

     8.  If the customer obtained service without the specific credit authorization of the utility; or

     9.  If the termination without prior notice is otherwise authorized pursuant to NAC 704.302 to 704.390, inclusive.

     [Pub. Service Comm’n, Gen. Order 27 § 3.1, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.355  Termination of service: Prior notice. (NRS 703.025, 704.1835, 704.210)

     1.  Except as otherwise provided in NAC 704.302 to 704.390, inclusive, a utility may terminate electric or gas service to a customer without the consent of the customer, after adequate notice has been given pursuant to NAC 704.360 and 704.365, for any of the following reasons:

     (a) Nonpayment of a delinquent bill.

     (b) Failure to make a security deposit, an installment payment on a delinquent bill, or a security deposit, or a guarantee, when required.

     (c) Violation of any rule of the utility.

     2.  Except as otherwise provided in NAC 704.302 to 704.390, inclusive, a utility may terminate service:

     (a) At the new location of a customer for the failure to pay a delinquent bill for residential service which the customer received at a previous location; or

     (b) If a customer receives residential service at more than one location, at any of the locations for the failure to pay a delinquent bill at any location.

     [Pub. Service Comm’n, Gen. Order 27 § 3.2, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.360  Termination of service: Provision of notice. (NRS 703.025, 704.1835, 704.210)

     1.  If a utility has a reason for the termination of service under NAC 704.355 and intends to terminate service, the utility shall in every case send a written notice of its intended action to the customer at least 10 days before it carries out the action, except that if the customer has failed to comply with the terms of an agreement for deferred payment, the utility may terminate service upon 48-hours’ notice as provided in NAC 704.341.

     2.  If the customer is an advanced service delivery meter customer, an electric utility must include a statement with the initial notice required by subsection 1 stating that the electric utility will notify the advanced service delivery meter customer or a third person designated by the customer pursuant to NAC 704.365 in person before termination of service if:

     (a) The advanced service delivery meter customer is elderly or is a person with a disability, or whose household includes a person who is elderly or a person with a disability; and

     (b) The advanced service delivery meter customer has notified the electric utility that the advanced service delivery meter customer is elderly or is a person with a disability, or whose household includes a person who is elderly or a person with a disability.

Ê As used in this subsection, “in person” means a method of notice provided by an electric utility in which a representative of the electric utility visits the premises where an advanced service delivery meter is located and makes a reasonable attempt to contact the customer at the premises.

     3.  If the utility receives no response to the initial notice, it shall send a second notice to the customer using:

     (a) A method required by NAC 704.390, if the customer is subject to the provisions of that section; or

     (b) A method which ensures that the notice is delivered to the customer or the customer’s premises at least 48 hours before it terminates service.

     4.  The initial notice must be served upon the customer:

     (a) By personal service;

     (b) By depositing the notice with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the customer’s last known mailing address; or

     (c) If requested by the customer and within the capability of the utility, by electronic notice sent via the Internet to the most recent electronic address provided to the utility by the customer.

     5.  Service of the initial notice shall be deemed complete on the date that the notice is:

     (a) Delivered by personal service to the customer;

     (b) Deposited with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the customer’s last known mailing address; or

     (c) Sent via the Internet to the most recent electronic address provided to the utility by the customer.

     6.  Except as otherwise provided in NAC 704.390, a second notice may be communicated to the customer:

     (a) In person;

     (b) By depositing the notice with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the customer’s last known mailing address;

     (c) If requested by the customer and within the capability of the utility, by electronic notice sent via the Internet to the most recent electronic address provided to the utility by the customer;

     (d) By telephone if the person receiving the communication is 18 years of age or older and is a resident at the address where service is being provided; or

     (e) By posting the notice on the door of that residence if no one is at home.

Ê If a utility intends to change the method it normally uses to communicate a second notice, it shall send a written notice to its customers specifying the new method and the date on which it will begin using that method.

     7.  The initial notice and any second notice of an intended termination of service must contain the following information in plain language, with the information listed in paragraphs (i), (j) and (l) presented in a larger type size than the balance of the notice:

     (a) An identification of the account affected by the intended termination.

     (b) The date on or after which the intended termination will occur.

     (c) The address of the location where service will be terminated.

     (d) The reason for the intended termination, including, if the intended termination is for nonpayment, a statement designating the bill as one for actual or estimated use and specifying the total amount owed, the period over which that amount was incurred and the minimum payment required to avoid termination.

     (e) The procedures which are available to dispute or appeal from the intended termination, specifying the address and telephone number of the utility’s office which is responsible for handling complaints or inquiries.

     (f) A statement that the utility will promptly investigate any complaint or dispute and give the customer its written decision on the matter.

     (g) A statement that if the customer wishes to dispute any fact or interpretation of a regulation relied upon by the utility in its decision to terminate service, the customer must communicate with the Division. The statement must include the mailing address, telephone number and toll-free telephone number of the Division.

     (h) A statement that service will not be terminated before a resolution of the dispute if the customer pays the questioned portion of the bill at the time the dispute arises and pays all subsequent bills.

     (i) An explanation of any arrangements for payment which the utility offers to customers who have difficulty in paying their bills.

     (j) A list of the names, addresses and telephone numbers of at least two governmental agencies or other organizations which have notified the utility that they will assist customers in paying their utility bills.

     (k) An explanation of the restrictions on the termination as set forth in NAC 704.370.

     (l) A statement that a customer should notify the utility immediately if any member of the customer’s household requires the continuing use of electric or gas appliances to maintain that member’s essential health. The statement required by this paragraph must advise the customer that the customer may obtain a postponement of the termination of service pursuant to NAC 704.370.

     (m) An explanation of the utility’s fee schedule and procedures for reconnecting service.

     8.  If a utility provides a customer with an initial notice or a second notice of an intended termination of service and the customer or another adult resident of the customer’s household communicates orally with the utility concerning the notice, the utility shall explain to the customer or other adult resident each item of information which is included in the notice pursuant to subsection 7.

     9.  If a utility has a reason for the termination of service and intends to terminate service to a mobile home park or a multiunit residential complex, the utility shall use its best efforts to notify

the occupants of each family dwelling unit located within the park or complex of the utility’s intended action. The utility shall use its best efforts to notify the occupants by posting on the door of each such unit a written notice which states:

     (a) The reason for the termination of service;

     (b) The deadline for making any delinquent payments or for taking any corrective action that is necessary to avoid the termination of service; and

     (c) The date scheduled for the termination of service in the event that any delinquent payments are not made or corrective action is not taken.

Ê The utility shall provide the notice required by this subsection to the occupants of a multiunit residential complex at the same time that the utility provides notice to the customer of record for the complex.

     [Pub. Service Comm’n, Gen. Order 27 § 4.1, eff. 8-21-81]—(NAC A 8-4-83; 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

      NAC 704.365  Termination of service: Designation and notification of third person. (NRS 703.025, 704.1835, 704.210)

     1.  A utility shall:

     (a) Give written notice to each customer who is elderly or who is a person with a disability that the customer may designate a third person to receive notification of the pending termination of service. The utility shall give the written notice:

          (1) At the time the customer applies for service; or

          (2) If the customer applies for service by telephone, at the time the customer receives the first bill for service.

     (b) Upon the written request of a customer, notify a third person designated by the customer of an intended termination of service by sending the third person a duplicate notice. The third person need not pay the bill.

     (c) Make a diligent effort to notify the designated third person, but the utility does not incur any liability for a failure to notify the third person.

     2.  As used in this section, “third person” includes any guarantor of the customer making the designation and any other person or public agency, other than the customer or the utility.

     [Pub. Service Comm’n, Gen. Order 27 § 4.2, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.370  Termination of service: Postponement when dangerous to health. (NRS 703.025, 704.1835, 704.210)

     1.  A utility shall postpone the termination of service to a customer for 30 days after the day on which it receives both of the following:

     (a) A statement from a licensed physician, public health official or advanced practice registered nurse certifying that any termination of service would be especially dangerous to the health of the customer or another person who is a permanent resident of the premises where service is being provided and would constitute an emergency affecting the health of the person. The licensed physician, public health official or advanced practice registered nurse may consider the feebleness, advanced age, physical disability, mental incapacity, serious illness or other infirmity of the person affected. Except as otherwise provided in this paragraph, the statement must be in writing and include:

          (1) The address where service is provided;

          (2) The name of the person whose health would be especially endangered;

          (3) A clear description of the nature of the emergency; and

          (4) The name, title and signature of the licensed physician, public health official or advanced practice registered nurse certifying the emergency.

Ê The statement may be made by telephone if a written statement is sent for confirmation to the utility within 5 days after the oral statement is made.

     (b) A statement signed by the customer:

          (1) That the customer is unable to pay for service in accordance with the requirements of the utility’s billing; or

          (2) That the customer is able to pay for service only in installments. The utility shall allow an installment period of up to 90 days for the customer to pay the bills of the customer.

     2.  The postponement may be extended for an additional 30 days if the utility receives a renewed medical certificate before the expiration of the original period of postponement.

     3.  If a utility again intends to terminate service after a customer has obtained a postponement pursuant to subsection 1, the utility shall give written notice of its intended action:

     (a) To the Division;

     (b) To the customer and to any other person who is required to receive notice pursuant to NAC 704.360 or 704.365; and

     (c) To governmental agencies or other organizations which have notified the utility that they will assist customers in paying their utility bills.

     4.  Before the period of postponement expires, the customer must arrange with the utility to pay the bills of the customer in accordance with its applicable rules.

     [Pub. Service Comm’n, Gen. Order 27 § 5.1, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R061-17, 12-19-2017)

      NAC 704.372  Termination of service: Postponement upon agreement to pay delinquent bill. (NRS 703.025, 704.1835, 704.210)

     1.  If the service of a customer is being terminated for nonpayment of a delinquent bill or any installment due on such a bill, the utility may postpone the termination, regardless of whether the customer is qualified to make deferred payments pursuant to NAC 704.338 or 704.341, if the utility determines that the customer is able to pay the amount owed and the customer agrees to a plan for payment.

     2.  In determining whether a customer is able to pay the amount owed, the utility shall consider:

     (a) The amount owed;

     (b) The length of time the bill or installment is past due;

     (c) The date the account was established;

     (d) The history of payment maintained by the customer with the utility;

     (e) The credit history of the customer;

     (f) The period for payment;

     (g) Any extraordinary circumstances of the case; and

     (h) Any information presented to the utility by the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.375  Termination of service: Miscellaneous restrictions. (NRS 703.025, 704.1835, 704.210)

     1.  Except as otherwise provided in subsections 1 and 2 of NAC 704.350, a utility may not terminate service to a customer on a weekend, on a holiday or on the day before a weekend or a holiday.

     2.  Except as otherwise provided in subsections 1 and 2 of NAC 704.350, an electric utility may terminate service to an advanced service delivery meter customer between the hours of 7:30 a.m. and 12:30 p.m. only.

     3.  Except as otherwise provided in subsections 1 and 2 of NAC 704.350, a utility may not terminate service to a customer if the utility has knowledge that the customer or a permanent resident of the customer’s household:

     (a) Is confined to the location where service is provided;

     (b) Is on a life support device which, to operate effectively at that location, requires service to be provided by the utility; and

     (c) Is likely to die without the aid of the life support device if the utility terminates service.

     4.  An electric utility may not terminate service to an advanced service delivery meter customer because of nonpayment if the outstanding amount owed by the customer is $100 or less. Sierra Pacific Power Company may not terminate service to a dual-billed gas and electric customer in its northern Nevada service territory because of nonpayment if the outstanding amount owed by the customer for electric or gas service, or for combined gas and electric service, is $100 or less.

     5.  Except as otherwise provided in subsection 4, a utility may not terminate service to a customer because of nonpayment if the outstanding amount owed by the customer is $50 or less.

     6.  If a utility intends to terminate service to a customer or a multiunit residential complex because of nonpayment, the utility shall postpone the termination if the termination would occur during a forecasted period of extreme temperature for the local geographical area which encompasses the location where service is provided and which typically experiences similar temperature conditions as the location where service is provided.

     7.  As used in this section:

     (a) “Forecasted period of extreme temperature” means any period of 24 hours for which the National Weather Service has issued a forecast predicting that, at some point during the period of 24 hours, the outside temperature:

          (1) Within the northern Nevada service territory of Sierra Pacific Power Company will be:

               (I) Ninety-five degrees Fahrenheit or higher for an electric customer who is subject to the provisions of NAC 704.390;

               (II) One hundred five degrees Fahrenheit or higher for an electric customer who is not subject to the provisions of NAC 704.390;

               (III) Twenty degrees Fahrenheit or lower for an electric customer who is subject to the provisions of NAC 704.390; or

               (IV) Fifteen degrees Fahrenheit or lower for an electric customer who is not subject to the provisions of NAC 704.390.

          (2) Within the southern Nevada service territory of Nevada Power Company will be:

               (I) One hundred degrees Fahrenheit or higher for an electric customer who is subject to the provisions of NAC 704.390 and who lives in a mobile home constructed before January 1, 2000;

               (II) One hundred three degrees Fahrenheit or higher for an electric customer who is subject to the provisions of NAC 704.390 and who does not live in a mobile home constructed before January 1, 2000;

               (III) One hundred five degrees Fahrenheit or higher for an electric customer who is not subject to the provisions of NAC 704.390;

               (IV) Twenty degrees Fahrenheit or lower for an electric customer who is subject to the provisions of NAC 704.390; or

               (V) Fifteen degrees Fahrenheit or lower for an electric customer who is not subject to the provisions of NAC 704.390.

          (3) Within the service territory of any gas utility will be, for all customers:

               (I) One hundred five degrees Fahrenheit or higher; or

               (II) Fifteen degrees Fahrenheit or lower.

     (b) “National Weather Service” means the National Weather Service of the National Oceanic and Atmospheric Administration of the United States Department of Commerce.

     [Pub. Service Comm’n, Gen. Order 27 § 5.2, eff. 8-21-81]—(NAC A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

      NAC 704.380  Termination of service: Restrictions regarding certain delinquent bills. (NRS 703.025, 704.1835, 704.210)

     1.  A utility may not terminate residential service to a customer because of the failure to pay a delinquent bill for a nonresidential class of service.

     2.  A utility may not terminate service to a customer because of delinquent bills that were incurred by the previous occupant of the location where service is provided.

     [Pub. Service Comm’n, Gen. Order 27 § 5.3, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.383  Resumption of service. (NRS 703.025, 704.1835, 704.210)

     1.  A utility shall resume service to a customer:

     (a) If the customer has complied with the requirements of the utility set forth in its tariff;

     (b) Upon the order of any court of competent jurisdiction or the Commission; or

     (c) If the statement conforms to the requirements of that paragraph, immediately upon its receipt of the statement described in paragraph (a) of subsection 1 of NAC 704.370.

     2.  Except as otherwise provided in subsection 3, if a utility terminates service to a customer because of nonpayment and the customer or another person or entity on behalf of the customer subsequently pays the utility in an amount that is sufficient to resume service, the utility shall resume service to:

     (a) A gas and electric customer not served through an advanced service delivery meter:

          (1) On the same day that the payment is received by the utility, if the payment is received by the utility on or before 10 a.m.; or

          (2) Within 24 hours after the time when the payment is received by the utility, if the payment is received by the utility after 10 a.m.

     (b) An advanced service delivery meter customer:

          (1) On the same day that the payment is received by the electric utility, if the payment is received by the electric utility on or before 2 p.m.; or

          (2) Within 24 hours, if the payment is received by the electric utility after 2 p.m.

     3.  If a utility terminates service to a multiunit residential complex because of nonpayment and the customer of record or another person or entity on behalf of the customer of record subsequently pays the utility in an amount that is sufficient to resume service, the utility shall resume service to each unit within the multiunit residential complex on a priority basis, subject to emergency situations, including, but not limited to, emergency situations affecting the health of a person as described in paragraph (a) of subsection 1 of NAC 704.370.

     4.  A utility may charge a fee, as set forth in its tariff, to resume service to a customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

      NAC 704.385  Written notice to customers and outreach concerning elderly persons and persons with disability. (NRS 703.025, 704.210)

     1.  A utility shall give written notice to:

     (a) Each new customer at the time the customer applies for service; and

     (b) Each customer at least once annually by means of a notice enclosed with a bill,

Ê that special assistance is available to elderly persons and to persons with a disability who are unable to pay their bills on a timely basis and that such a person must communicate with the utility if the person wishes to benefit from that special assistance.

     2.  If the customer is an advanced service delivery meter customer, the electric utility must include a statement with the written notice given pursuant to subsection 1 stating that the electric utility will notify the advanced service delivery meter customer or a third person designated by the customer pursuant to NAC 704.365 in person before termination of service for nonpayment if:

     (a) The advanced service delivery meter customer is elderly or is a person with a disability, or whose household includes a person who is elderly or a person with a disability; and

     (b) The advanced service delivery meter customer has notified the electric utility that the advanced service delivery meter customer is elderly or is a person with a disability, or whose household includes a person who is elderly or a person with a disability.

Ê As used in this subsection, “in person” means a method of notice provided by an electric utility in which a representative of the electric utility visits the premises where an advanced service delivery meter is located and makes a reasonable attempt to contact the customer at the premises.

     3.  An electric utility shall conduct outreach to identify the number of its customers’ households that include a person who is elderly or a person with a disability.

     [Pub. Service Comm’n, Gen. Order 27 § 6.1, eff. 8-21-81]—(NAC A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

      NAC 704.390  Notice of termination of service to customer who is elderly or who is person with disability. (NRS 703.025, 704.1835, 704.210)

     1.  A utility may not terminate service to a customer who is elderly or who is a person with a disability, or whose household includes a person who is elderly or a person with a disability, unless the utility has notified the customer or another resident of the customer’s household who is 18 years of age or older at the address where service is provided at least 48 hours before the date upon which the termination would occur.

     2.  An electric utility shall make the notification required by subsection 1 in person. For the purposes of this subsection, “in person” means a method of notice provided by an electric utility in which a representative of the utility visits the premises where an advanced service delivery meter is located and makes a reasonable attempt to contact the customer at the premises.

     3.  A gas utility shall make the notification required by subsection 1 in person or by telephone.

     4.  When providing the notice required by subsection 1, the utility shall explain to the customer or other adult resident each item of information which subsection 7 of NAC 704.360 requires to be included in a written notice of intent to terminate service.

     5.  In addition to the notice required by subsection 1, the utility shall notify governmental agencies or other organizations which have notified the utility that they will assist customers in paying their utility bills.

     [Pub. Service Comm’n, Gen. Order 27 § 6.2, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

TERMINATION OF RESIDENTIAL WATER SERVICE

      NAC 704.391  Definitions. (NRS 703.025, 704.1835, 704.210)  As used in NAC 704.391 to 704.3936, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.3912 to 704.3922, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3912  “Customer” defined. (NRS 703.025, 704.1835, 704.210)  “Customer” means a person:

     1.  Who receives or applies to receive residential water service from a utility or landlord;

     2.  In whose name such service is or is to be provided, as evidenced by a signature on the application or contract for such service; or

     3.  In whose name such service is or is to be provided, as may be established by other demonstrable evidence that the person requested the utility or landlord to provide such service in that person’s name.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3914  “Division” defined. (NRS 703.025, 704.1835, 704.210)  “Division” means the Division of Consumer Complaint Resolution of the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3916  “Especially dangerous to health” defined. (NRS 703.025, 704.1835, 704.210)  “Especially dangerous to health” means a condition or event likely to cause serious impairment to the health of a person who appears to be unable, without assistance, to manage his or her own resources, carry out the activities of daily living, or protect himself or herself from neglect or a hazardous situation.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3918  “Landlord” defined. (NRS 703.025, 704.1835, 704.210)  “Landlord” means a landlord of a mobile home park:

     1.  Who is subject, in whole or in part, to the provisions of chapter 118B of NRS; and

     2.  Who pays a provider for water service and who distributes or resells the water to one or more residential tenants.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.392  “Termination of service” defined. (NRS 703.025, 704.1835, 704.210)  “Termination of service” means the intentional cessation of service by a utility or landlord to a customer which has not been requested by the customer and, in the case of a utility, which occurs pursuant to the tariffs of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3922  “Utility” defined. (NRS 703.025, 704.1835, 704.210)  “Utility” means a public utility, as defined in NRS 704.020, that furnishes residential water service to customers.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3924  Terms of agreement with customer. (NRS 703.025, 704.1835, 704.210)

     1.  Except as otherwise provided in this section, a utility or landlord may not enter into any agreement with a customer under terms that are inconsistent with the provisions of NAC 704.391 to 704.3936, inclusive.

     2.  Notwithstanding the provisions of NAC 704.391 to 704.3936, inclusive:

     (a) A utility may enter into an agreement with a customer under terms that are more favorable to the customer than those provided by NAC 704.391 to 704.3936, inclusive, if the more favorable terms are consistent with the tariffs of the utility.

     (b) A landlord may enter into an agreement with a customer under terms that are more favorable to the customer than those provided by NAC 704.391 to 704.3936, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3926  Termination without prior notice. (NRS 703.025, 704.1835, 704.210)  A utility or landlord may terminate water service without prior notice only:

     1.  If an unsafe or hazardous condition related to water service is found to exist on the customer’s premises;

     2.  If the use of water service on the customer’s premises is found to be detrimental or damaging to the facilities or services of the utility or the landlord, or to other customers;

     3.  Upon the order of any court or the Commission;

     4.  If the acts of the customer or the conditions upon the customer’s premises are such as to indicate to the utility or landlord that the customer intends to defraud it;

     5.  If the utility or landlord has tried diligently to meet the requirements for notice set forth in NAC 704.393 but has not been able to give such notice;

     6.  If an event occurs which could not have been reasonably anticipated or controlled and which requires the termination of service;

     7.  If the location where service is provided has been abandoned;

     8.  If the customer obtained service without the specific credit authorization of the utility or landlord; or

     9.  If the termination without prior notice is otherwise authorized pursuant to NAC 704.391 to 704.3936, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3928  Termination after notice. (NRS 703.025, 704.1835, 704.210)  Except as otherwise provided in NAC 704.391 to 704.3936, inclusive, a utility or landlord may terminate water service to a customer without the consent of the customer, after adequate notice has been given pursuant to NAC 704.393, for any of the following reasons:

     1.  Nonpayment of a delinquent bill for water service.

     2.  Failure to make a security deposit for water service, an installment payment on a delinquent bill or security deposit for water service, or a guarantee, when required.

     3.  Negligent or wasteful use of water on the premises of the customer.

     4.  Violation of any rule of the utility or landlord relating to water service.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.393  Provision of notice of termination. (NRS 703.025, 704.1835, 704.210)

     1.  Except as otherwise provided in NAC 704.3932, if a utility or landlord has a reason for the termination of service pursuant to NAC 704.3928 and intends to terminate service, the utility or landlord shall in every case send a written notice of its intended action to the customer at least 10 days before it carries out the action.

     2.  If the utility or landlord receives no response to the initial notice, it shall send a second notice to the customer using a method which ensures that the notice is delivered to the customer or the customer’s premises at least 48 hours before it terminates service.

     3.  The initial notice must be served upon the customer:

     (a) By personal service; or

     (b) By depositing the notice with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the customer’s last known mailing address.

     4.  Service of the initial notice shall be deemed complete on the date that the notice is:

     (a) Delivered by personal service to the customer; or

     (b) Deposited with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the customer’s last known mailing address.

     5.  The initial notice and any second notice of an intended termination of service must contain the following information in plain language, with the information listed in paragraphs (i) and (j) presented in a larger type size than the balance of the notice:

     (a) An identification of the account affected by the intended termination.

     (b) The date on which the intended termination will occur.

     (c) The address of the location where service will be terminated.

     (d) The reason for the intended termination, including, if the intended termination is for nonpayment, a statement designating the bill as one for actual or estimated use and specifying the total amount owed, the period over which that amount was incurred and the minimum payment required to avoid termination.

     (e) The procedures which are available to dispute or appeal from the intended termination, specifying the address and telephone number of the utility’s or landlord’s office which is responsible for handling complaints or inquiries.

     (f) A statement that the utility or landlord will promptly investigate any complaint or dispute and give the customer its written decision on the matter.

     (g) A statement that if the customer wishes to dispute any fact or interpretation of a regulation relied upon by the utility or landlord in its decision to terminate service, the customer must communicate with the Division. The statement must include the mailing address, telephone number and toll-free telephone number of the Division.

     (h) A statement that service will not be terminated before a resolution of the dispute if the customer pays the questioned portion of the bill at the time the dispute arises and pays all subsequent bills.

     (i) An explanation of any arrangements for payment which the utility or landlord offers to customers who have difficulty in paying their bills, including the program of deferred payments described in NAC 704.3932.

     (j) If the location where service will be terminated is in a county whose population is 50,000 or more:

          (1) The appropriate addresses and telephone numbers of the Division of Welfare and Supportive Services of the Department of Health and Human Services; and

          (2) A list of the names, addresses and telephone numbers of other organizations which have notified the utility that they will help customers who are unable to pay their bills.

     (k) An explanation of the restrictions on the termination as set forth in NAC 704.3936.

     (l) An explanation of the utility’s or landlord’s fee schedule and procedures for reconnecting service.

     6.  If a utility has a reason for the termination of service and intends to terminate service to a mobile home park or a multiunit residential complex, the utility shall use its best efforts to notify the occupants of each family dwelling unit located within the park or complex of the utility’s intended action. The utility shall use its best efforts to notify the occupants by posting on the door of each such unit a written notice which states:

     (a) The reason for the termination of service;

     (b) The deadline for making any delinquent payments or for taking any corrective action that is necessary to avoid the termination of service; and

     (c) The date scheduled for the termination of service in the event that any delinquent payments are not made or corrective action is not taken.

Ê The utility shall provide the notice required by this subsection to the occupants of a multiunit residential complex at the same time that the utility provides notice to the customer of record for the complex.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3932  Program of deferred payments. (NRS 703.025, 704.1835, 704.210)

     1.  Except as otherwise provided in this section, if a utility or landlord intends to terminate service to a customer because of nonpayment, the utility or landlord shall first offer the customer a program of deferred payments.

     2.  A program of deferred payments must require the customer to pay:

     (a) The arrearage within 60 days after the execution of the agreement, in three equal payments, with the first payment to be made upon the execution of the agreement; and

     (b) All future bills when due.

     3.  Except as otherwise provided in subsection 4, the utility or landlord shall offer the customer a program of deferred payments in each notice of intent to terminate service because of nonpayment which is provided to the customer pursuant to NAC 704.393.

     4.  The utility or landlord may terminate service to a customer who is participating in a program of deferred payments pursuant to this section for any failure by the customer to make payment as required by the program, if the utility or landlord sends written notice of its intended action to the customer at least 24 hours before it terminates service.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3934  Postponement of termination during forecasted period of extreme heat. (NRS 703.025, 704.1835, 704.210)

     1.  If a utility or landlord intends to terminate service to a customer because of nonpayment, the utility or landlord shall postpone the termination if the termination would occur during a forecasted period of extreme heat for the local geographical area which encompasses the location where service is provided and which typically experiences similar temperature conditions as the location where service is provided.

     2.  As used in this section:

     (a) “Forecasted period of extreme heat” means any period of 24 hours for which the National Weather Service has issued a forecast predicting that, at some point during the period of 24 hours, the outside temperature will be 105 degrees Fahrenheit or higher.

     (b) “National Weather Service” means the National Weather Service of the National Oceanic and Atmospheric Administration of the United States Department of Commerce.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3936  Postponement of termination when dangerous to health. (NRS 703.025, 704.1835, 704.210)

     1.  If a utility or landlord intends to terminate service to a customer because of nonpayment, the utility or landlord shall postpone the termination for 30 days after the day on which it receives both of the following:

     (a) A statement from a licensed physician, public health official or advanced practice registered nurse certifying that any termination of service would be especially dangerous to the health of the customer or another person who is a permanent resident of the premises where service is being provided and would constitute an emergency affecting the health of the person. The licensed physician, public health official or advanced practice registered nurse may consider the feebleness, advanced age, physical disability, mental incapacity, serious illness or other infirmity of the person affected and may also consider the necessity of cooling to maintain the health of the person affected, such as the necessity of cooling provided by an evaporative cooler or similar device. Except as otherwise provided in this paragraph, the statement must be in writing and include:

          (1) The address where service is provided;

          (2) The name of the person whose health would be especially endangered;

          (3) A clear description of the nature of the emergency; and

          (4) The name, title and signature of the licensed physician, public health official or advanced practice registered nurse certifying the emergency.

Ê The statement may be made by telephone if a written statement is sent for confirmation to the utility or landlord within 5 days after the oral statement is made.

     (b) A statement signed by the customer:

          (1) That he or she is unable to pay for service in accordance with the requirements of the utility’s or landlord’s billing; or

          (2) That he or she is able to pay for service only in installments. The utility or landlord shall allow an installment plan of up to 60 days for the customer to pay the bills of the customer. The installment plan must consist of three equal payments with the first payment to be made when the customer presents the signed statement to the utility or landlord.

     2.  The postponement may be extended for an additional 30 days if the utility or landlord receives a renewed medical certificate before the expiration of the original period of postponement.

     3.  If a utility or landlord again intends to terminate service after a customer has obtained a postponement pursuant to subsection 1, the utility or landlord shall give written notice of its intended action:

     (a) To the Division;

     (b) To the customer; and

     (c) To each governmental agency or other organization which has notified the utility or landlord that it will help customers who are unable to pay their bills.

     4.  Before the period of postponement expires, the customer must arrange with the utility or landlord to pay the bills of the customer in accordance with its applicable rules.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005; A by R061-17, 12-19-2017)

RIGHTS AND OBLIGATIONS OF CUSTOMERS OF CERTAIN TELECOMMUNICATION PROVIDERS

      NAC 704.395  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.395 to 704.421, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.3955 to 704.403, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.3955  “Connection fee” defined. (NRS 703.025, 704.210)  “Connection fee” means the charge for establishing service to a customer, defined in the tariff of the utility as the installation or service connection charge.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.396  “Cosigner” defined. (NRS 703.025, 704.210)  “Cosigner” means a person who assumes liability for the payment for service provided by a utility if a customer fails to pay for the service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3965  “Customer” defined. (NRS 703.025, 704.210)  “Customer” means a person:

     1.  Who receives or applies to receive any residential telecommunication service from a utility;

     2.  In whose name such service is or is to be provided, as evidenced by a signature on the application or contract for such service; or

     3.  In whose name such service is or is to be provided, as may be established by other demonstrable evidence that the person requested the utility to provide such service in that person’s name.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.397  “Deposit” defined. (NRS 703.025, 704.210)  “Deposit” means money provided by a customer to ensure payment for service provided by a utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3975  “Division” defined. (NRS 703.025, 704.210)  “Division” means the Division of Consumer Complaint Resolution of the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.398  “Elderly” defined. (NRS 703.025, 704.210)  “Elderly” means a person who is 60 years of age or older.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3985  “Especially dangerous to health” defined. (NRS 703.025, 704.210)  “Especially dangerous to health” means a condition or event likely to cause serious impairment to the health of a person who appears to be unable, without assistance, to manage his or her own resources, carry out the activities of daily living, or protect himself or herself from neglect or a hazardous situation.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.399  “Guarantor” defined. (NRS 703.025, 704.210)  “Guarantor” means a person who assumes liability for the payment of a deposit if a customer fails to pay the deposit.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3995  “Person with a disability” defined. (NRS 703.025, 704.210)  “Person with a disability” means a person who has a physical or mental disability for which he or she receives benefits from a governmental agency.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.401  “Satisfactory credit” defined. (NRS 703.025, 704.210)  “Satisfactory credit” means credit that is not unsatisfactory credit.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4015  “Termination of service” defined. (NRS 703.025, 704.210)  “Termination of service” means the intentional cessation of service by a utility to a customer that has not been requested by the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.402  “Third person” defined. (NRS 703.025, 704.210)  “Third person” includes any person or public agency other than the customer making the designation or the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4025  “Unsatisfactory credit” defined. (NRS 703.025, 704.210)  “Unsatisfactory credit” means the credit of a customer who, within the preceding 12 months:

     1.  Has had his or her service terminated for nonpayment of a delinquent bill or any installment due on such a bill; or

     2.  Has had dishonored two or more checks drawn by him or her in payment for service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.403  “Utility” defined. (NRS 703.025, 704.210)  “Utility” means a public utility, as defined in NRS 704.020, that furnishes basic service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A 10-25-95)

      NAC 704.404  Applicability; purpose. (NRS 703.025, 704.210)  The provisions of NAC 704.395 to 704.421, inclusive:

     1.  Apply to telephone service furnished to residential customers by a telecommunication provider which provides basic service.

     2.  Provide guidance to a small-scale provider of last resort that is not a competitive supplier and which provides service through less than 10,000 access lines regarding the scope and substance of the issues which must be addressed in the tariffs that must be filed with the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A 10-25-95; A by Pub. Utilities Comm’n by R059-02, 2-17-2005; R136-07, 1-30-2008; R040-08, 9-18-2008)

      NAC 704.4045  Records of utility. (NRS 703.025, 704.210)

     1.  Each utility shall prepare and maintain records for at least 1 year.

     2.  The records must contain:

     (a) The number and accumulated amounts of deposits that have been collected and returned; and

     (b) For each of its customers:

          (1) His or her payment performance;

          (2) The amount for each billing period;

          (3) The number and general description of the written complaints filed with the utility;

          (4) The number of agreements for payment entered into by the utility; and

          (5) The number of terminations and reconnections of service.

     3.  Upon the request of the Commission, a utility shall submit to the Commission, in writing, a summary of the information contained in those records.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4051  Dissemination of information concerning customers. (NRS 703.025, 704.210)  Except for information contained in its telephone directory list, a utility may not provide any information concerning its customers to any person for commercial purposes without the approval of the Commission. Nothing in this section shall be deemed to preclude a utility from providing any person, including any other utility or telecommunication provider, with information necessary to provide utility services.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.406  Availability of information to customers. (NRS 703.025, 704.210)  Each utility shall make available to each of its customers, upon request, information describing the services it provides and specifying the rates and charges for those services.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4065  Notice of programs for customers with special needs. (NRS 703.025, 704.210)

     1.  A utility shall notify each customer that special programs may be available for customers who are elderly or persons with a disability or have other special needs.

     2.  The notice required by subsection 1 must:

     (a) Be made by means of a notice on a bill or enclosed with a bill;

     (b) Be made not less frequently than once each year;

     (c) State that information concerning these programs may be found in NAC 704.395 to 704.421, inclusive, or obtained from the business office of the utility; and

     (d) Be printed in a type size that is not smaller than 12-point type or font.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.407  Terms of agreement with customer. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2, a utility may not enter into any agreement with a customer under terms that are inconsistent with the provisions of NAC 704.395 to 704.421, inclusive, unless it informs the customer of his or her rights under those sections.

     2.  Notwithstanding the provisions of NAC 704.395 to 704.421, inclusive, a utility may enter into an agreement with a customer under terms that are more favorable to the customer than those provided by NAC 704.395 to 704.421, inclusive, if the more favorable terms are consistent with the tariffs of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.408  Application for service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2, a customer may make an application for service by mail or by telephone.

     2.  If there is reason to believe that a customer applying for service has defrauded, is defrauding, or intends to defraud the utility, or if other good cause exists, the utility may refuse to accept an application for service made by mail or by telephone.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4085  Establishment of credit. (NRS 703.025, 704.210)

     1.  A utility may require a customer to establish credit before it:

     (a) Furnishes service; or

     (b) Resumes service after a termination of service, if the customer:

          (1) Has not previously paid a deposit to the utility; or

          (2) Has paid a deposit, but it has been returned to the customer in whole or in part, applied to his or her account, or treated as part of a new deposit.

     2.  For the purposes of this section, a customer establishes credit if he or she:

     (a) Pays a deposit to the utility;

     (b) Has, during the 2 years preceding the request for service, been a customer of:

          (1) The utility and has established satisfactory credit; or

          (2) Another municipal or regulated telephone utility, has made timely payment of each bill issued to him or her during the most recent 12 months of service, and the record of payment can be verified;

     (c) Uses a cosigner or guarantor, at the option of the utility, with credit acceptable to the utility;

     (d) Receives benefits from a retirement plan or the Social Security Administration, unless he or she has unsatisfactory credit; or

     (e) Demonstrates creditworthiness in any other manner satisfactory to the utility.

     3.  Except as otherwise provided in NAC 704.409, a customer may not be required by a utility to establish credit in any particular manner described in subsection 2.

     4.  Upon the request of a customer, a utility shall provide a form to use in requesting his or her credit history from another utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.409  Deposit: Generally. (NRS 703.025, 704.210)

     1.  A customer may be required to pay a deposit or the balance of a deposit if the customer has unsatisfactory credit or cannot establish credit in any other manner permitted by subsection 2 of NAC 704.4085 and:

     (a) He or she has not previously paid a deposit;

     (b) He or she has paid less than the full amount of the deposit otherwise required pursuant to subsection 4; or

     (c) His or her deposit has been returned in whole or in part, applied to his or her account, or treated as part of a new deposit.

     2.  If a customer cannot establish credit in any other manner permitted by subsection 2 of NAC 704.4085 the utility may, for the purpose of determining whether the customer will be required to pay a deposit, consider:

     (a) Whether the customer has been continuously employed by the same employer for at least 1 year;

     (b) In the case of a customer who has recently been divorced or separated and is applying for service in his or her own name, the record of payment for any service previously furnished to his or her household; and

     (c) Any other factor set forth in the tariff of the utility.

     3.  Any deposit paid by a customer must be paid in cash. Unless there is reason to believe that the customer has defrauded, is defrauding, or intends to defraud the utility, or other good cause exists, a deposit may be paid by mail.

     4.  The amount of any deposit required or held by a utility may not exceed:

     (a) In the case of a customer with unsatisfactory credit for whom the utility can determine actual usage, twice the customer’s average monthly bill for service, including toll service; or

     (b) In any other case, $100 or an amount equal to twice the average estimated monthly bill for service, whichever is less.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R143-13, 10-24-2014)

      NAC 704.4095  Payment of deposit and connection fee. (NRS 703.025, 704.210)

     1.  A customer who pays a deposit or a connection fee, or both, may:

     (a) Be required to pay the entire amount of the deposit and connection fee before service is provided; or

     (b) Enter into an agreement with the utility for payment of the deposit and connection fee in installments if the customer’s credit is satisfactory and the total amount of the deposit and connection fee:

          (1) Exceeds $50; or

          (2) Is less than $50, if the customer contacts the utility and indicates the existence of circumstances that would result in hardship if the customer were required to pay the deposit and connection fee in one installment.

     2.  If there is an agreement for payment in installments:

     (a) The customer may be required to pay:

          (1) An amount equal to at least one-third of the total amount of the deposit and connection fee, before service is provided;

          (2) The remainder of the deposit and connection fee, in not more than two equal installments, not later than 30 and 60 days, respectively, after the date of the agreement; and

          (3) Interest, at a rate set forth in the tariff of the utility, on any unpaid portion of the deposit or connection fee.

     (b) The service of the customer may be terminated for a failure to pay any part of the deposit or connection fee as agreed and, in such a case, the customer may be required to pay the full amount of the deposit and connection fee, plus any other money owed the utility, before service is restored.

     (c) Service to the customer may be terminated without any further notice if:

          (1) The customer fails to pay any bill for service received or any part of the deposit or connection fee; and

          (2) The agreement is in writing and contains a statement, in boldface type, of the right of termination.

     (d) The customer must be informed of the provisions of this subsection at the time he or she enters into the agreement.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4105  Deposit: Return. (NRS 703.025, 704.210)  If a deposit has been paid by a customer and the customer has established a record of timely payments for 12 consecutive months, the utility shall return the deposit to the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.411  Cosigners and guarantors. (NRS 703.025, 704.210)

     1.  A cosigner or guarantor must be a customer of the utility providing service to the customer for whom the cosigner or guarantor is acting.

     2.  The liability of a:

     (a) Cosigner ceases after the customer has made 12 consecutive timely monthly payments to the utility.

     (b) Guarantor is limited to the amount of the deposit owed by the customer and ceases after the date the deposit is required to be returned to the customer pursuant to NAC 704.4105.

     3.  A cosigner or guarantor who is required to make any payment for a customer may pay the amount owed within a period of not more than 3 months.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.412  Contents of bill for service. (NRS 703.025, 704.210)  Each bill for service issued by a utility to a customer must set forth:

     1.  Any previous balance;

     2.  The amount due for service provided during the current billing period;

     3.  Sufficient information upon which to calculate any charge for late payment;

     4.  Any other authorized charge or tax;

     5.  Any unregulated charge;

     6.  The total of the preceding amounts;

     7.  The first and last day of the billing period for local service;

     8.  The date the bill is past due;

     9.  A summary of the provisions of NAC 704.4145, as required by subsection 4 of that section; and

     10.  The telephone number of the utility where the customer may obtain information about his or her bill or the service provided.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4125  Payment of bill for service. (NRS 703.025, 704.210)

     1.  A bill for service issued by a utility is due:

     (a) Upon deposit of the bill with the United States Postal Service for delivery to the customer by first-class mail; or

     (b) In the case of delivery by other means, upon delivery of the bill to the billing address of the customer.

     2.  A customer may pay the bill:

     (a) Unless there is reason to believe that he or she has defrauded, is defrauding or intends to defraud the utility, or other good cause exists, by depositing payment with the United States Postal Service for delivery to the utility by first-class mail;

     (b) By making payment at the business office of the utility; or

     (c) By making payment to any person authorized by the utility to accept payment.

     3.  Except as otherwise provided in this subsection, the date a bill is past due may not be earlier than 15 days after its issuance. If the last day for payment before the past due date falls on a Sunday, legal holiday or any other day on which the office of a utility used for the payment of bills is closed, the last day for payment is the next business day. Payment of a bill by first-class mail is timely if the payment is received by the utility not more than 3 days after the past due date.

     4.  A utility may charge a customer a fee, as set forth in its tariff, for:

     (a) The return of an unpaid check.

     (b) The late payment of a bill.

     (c) The use of a credit card to make a payment to the utility, except a small-scale provider of last resort that is not a competitive supplier shall not charge a customer a fee for the use of a credit card to make a payment to the small-scale provider of last resort that is not a competitive supplier or enter into an agreement with a third-party credit card service which charges a customer such a fee, unless the fee has been reviewed and approved by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005; R040-08, 9-18-2008)

      NAC 704.413  Agreement for deferred payment of bill. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2, if a customer is delinquent in the payment of any bill and requests that the utility accept deferred payment, the utility shall do so if the customer signs a written agreement to pay:

     (a) At least 40 percent of the delinquent amount of the bill at the time of the agreement;

     (b) The balance of the bill, in three equal monthly installments, within 90 days after the date of the agreement; and

     (c) All future bills when due.

     2.  Unless the utility otherwise agrees, a customer may not make deferred payment pursuant to this section if, during the preceding 12 months:

     (a) He or she has made another deferred payment pursuant to this section; or

     (b) His or her service has been terminated for nonpayment of a delinquent bill or any installment due on such a bill.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4135  Apportionment of partial payment of bill. (NRS 703.025, 704.210)  If a utility receives from a customer a partial payment for local and toll service, with no explanation of the manner in which the payment is to be applied, the utility shall apportion the payment in the ratio that the charge for local service bears to the charge for toll service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.414  Credit to account of customer. (NRS 703.025, 704.210)

     1.  A utility shall, if it verifies that a credit is required under the provisions of this section, credit the account of a customer for incomplete calls, unanswered calls, wrong numbers, or poor quality of transmission.

     2.  The requirements of this section apply only to:

     (a) IntraLATA toll calls; and

     (b) InterLATA toll calls for which the utility is directed to allow a credit by the carrier or its agent.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4145  Resolution of dispute regarding bill, charge or service. (NRS 703.025, 704.210)

     1.  If a customer disputes any bill, charge or service, the utility shall promptly investigate the matter and report its determination to the customer. If the customer so requests, the report must be made in writing. Whether or not a written report is requested, upon an adverse determination by the utility, it shall inform the customer of the right to file a complaint with the Division.

     2.  If the customer is not satisfied with the utility’s determination, he or she may file a complaint with the Division.

     3.  Except as otherwise provided in NAC 704.4151, if the customer files a complaint with the Division, the customer may be required by the utility to pay any disputed amount to the utility pending resolution of the complaint unless the utility agrees to waive the requirement. If such a payment is made, the utility shall refund any money found by the Commission to have been charged improperly.

     4.  A summary of the provisions of this section must be:

     (a) Printed on the front or back of each bill or notice of termination issued by a utility; or

     (b) Set forth in a section of each telephone directory issued by a utility. If this method is used, a reference to that section of the directory must be included on the front or back of each bill or notice of termination issued by the utility.

Ê The summary must include the mailing address, telephone number and toll-free telephone number of the Division.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.4151  Furnishing local service to customer who fails to pay disputed toll charges and files complaint; action upon resolution of complaint. (NRS 703.025, 704.210)

     1.  If a customer fails to pay disputed toll charges and files a complaint with the Division, the utility shall continue to furnish local service to the customer pending resolution of the dispute if the customer brings current all outstanding charges for local service. If toll restriction is available from the utility, the customer shall pay the rates and charges for toll restriction set forth in the tariff of the utility.

     2.  If the Commission resolves the complaint in favor of the customer, the utility shall reimburse the customer for:

     (a) Any disputed charges which the customer paid to the utility and which are resolved by the complaint;

     (b) Any rates and charges for toll restriction which the customer paid to the utility and which are related to the complaint; and

     (c) Any other amounts which the customer paid to the utility and which are related to the complaint.

     3.  If the Commission resolves the complaint against the customer, the customer shall pay toll charges that the customer owes to the utility, and the utility shall transfer toll charges to the appropriate telecommunication provider that provided toll service to the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A 10-25-95; A by Pub. Utilities Comm’n by R059-02, 2-17-2005; R136-07, 1-30-2008)

      NAC 704.4155  Continuation of certain services upon temporary suspension of basic service because of nonpayment. (NRS 703.025, 704.210)  If a utility temporarily suspends basic service to a customer because of nonpayment, the utility shall, if it has the technology, continue to provide the customer with access to:

     1.  Emergency 911 service;

     2.  At least one telephone number for reporting trouble to the utility; and

     3.  At least one telephone number for the business office of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R059-02, eff. 2-17-2005)

      NAC 704.416  Grounds for termination of service. (NRS 703.025, 704.210)  Except as otherwise provided in NAC 704.395 to 704.421, inclusive, a utility may terminate service to a customer without the consent of the customer, after giving any notice required by NAC 704.4165 and 704.417, for any of the following reasons:

     1.  Failure of the customer or any cosigner of the customer to pay a delinquent bill or any installment due on such a bill, including a bill for service received:

     (a) At a previous location; or

     (b) If the customer receives service at more than one location, at any such location.

     2.  Failure of the customer or any guarantor of the customer to pay any required deposit or connection fee or any installment due on either.

     3.  Failure of the customer to pay toll charges appearing on the bill, except that if the customer files a complaint with the Division to dispute the toll charges and complies with the provisions of NAC 704.4151, the utility may not terminate local service under this subsection unless the Commission resolves the complaint against the customer.

     4.  Violation by the customer of any rule of the utility set forth in its tariff. As used in this subsection, “rule” means a provision that establishes the application of rates, charges and standards for service and is not included in a rate schedule.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.4165  Notice of intended termination of service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in NAC 704.418, a utility that intends to terminate service to a customer shall give written notice of the termination to the customer and make a reasonable effort to notify any:

     (a) Cosigner or guarantor of the customer; and

     (b) Third person designated by the customer pursuant to NAC 704.4175.

     2.  Except as otherwise provided in subsection 1, the notice must be served upon each person described in that subsection at least 5 business days before the date of the termination by personal delivery or by first-class mail addressed to his or her last known mailing address. Service of the notice shall be deemed complete as of the date of mailing or personal delivery.

     3.  The notice must clearly set forth:

     (a) The account number and telephone number of the customer affected;

     (b) The date on or after which the termination will occur;

     (c) The reason for the termination;

     (d) If the termination is for nonpayment of a delinquent bill or any installment due on such a bill, the total amount of money owed to the utility by the customer and the minimum payment required to avoid termination;

     (e) The telephone number at which the customer may obtain information from the utility concerning the customer’s bill or service;

     (f) A statement that the customer may contest the termination before the Division as provided in NAC 704.4205; and

     (g) If required by that section, the statement required by NAC 704.4205.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.417  Special notice of proposed termination when dangerous to health. (NRS 703.025, 704.210)  Unless extraordinary circumstances exist, a utility which receives notice that a termination of service would be especially dangerous to the health of the customer or other person who is a permanent resident of the premises affected shall make a reasonable effort to give notice of the termination as provided in this section. This notice is in addition to the notice required by NAC 704.4165 and must be given in person or by telephone, at least 48 hours before the scheduled time of the termination, by a representative of the utility to the customer or to some adult resident of the location affected. The representative shall explain to the customer or resident each item of information required by subsection 3 of NAC 704.4165 to be included in a notice given pursuant to that section.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4175  Designation and notification of third persons. (NRS 703.025, 704.210)

     1.  A customer may, at any time, designate in writing a third person to receive notice of any pending termination of the service of the customer. A person so designated is not, because of that designation or because of any notice given pursuant to this section, liable for any obligation of the customer.

     2.  If a utility intends to terminate the service of the customer and notice of the termination is required pursuant to NAC 704.4165 or 704.417, the utility shall make a reasonable effort to notify any person designated pursuant to subsection 1. A utility that complies with the provisions of this subsection does not incur any liability because of a failure to give actual notice to the designated person.

     3.  Each customer who applies for service must be given notice by the utility of the provisions of this section if the customer gives notice to the utility that he or she is elderly or a person with a disability.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.418  Refusal of service and termination without notice. (NRS 703.025, 704.210)  A utility may refuse service, refuse to resume service or terminate service without giving the notice otherwise required by NAC 704.4165:

     1.  If an unsafe or hazardous condition related to the service exists on the premises of the customer;

     2.  If the use of the service on the premises of the customer is determined by the utility to be detrimental or damaging to the facilities or services of the utility or its customers;

     3.  Upon the order of any court of competent jurisdiction or the Commission;

     4.  Upon a written determination by a magistrate that there is probable cause to believe that the service:

     (a) Is prohibited by law; or

     (b) Is used or to be used, directly or indirectly, to violate or assist in a violation of the law;

     5.  If the utility determines, based upon the acts of the customer or the condition of the customer’s premises, that the customer has defrauded, is defrauding, or intends to defraud the utility, unless the conditions constituting the fraud have been corrected;

     6.  If an event in the nature of force majeure or vis major occurs that requires the termination of the service; or

     7.  If the location at which the service is provided has been abandoned.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4185  Postponement of termination when dangerous to health. (NRS 703.025, 704.210)

     1.  Unless extraordinary circumstances exist, if the local service of a customer is being terminated, the utility shall postpone the termination for 30 days after it receives both of the following:

     (a) A statement from a licensed physician, public health official or advanced practice registered nurse certifying that the termination would be especially dangerous to the health of the customer or other person who is a permanent resident of the premises affected. The licensed physician, public health official or advanced practice registered nurse may consider the feebleness, advanced age, physical disability, mental incapacity, serious illness, or other infirmity of the person affected. Except as otherwise provided in this paragraph, the statement must be in writing and include:

          (1) The address where service is provided;

          (2) The name of the person whose health would be especially endangered;

          (3) A clear description of the nature of the emergency; and

          (4) The name, title, and signature of the licensed physician, public health official or advanced practice registered nurse making the statement.

Ê The statement may be made by telephone if a written statement is sent for confirmation to the utility within 5 days after the oral statement is made.

     (b) A statement signed by the customer that he or she is presently unable to pay the bill or installment. Before the period of postponement expires, the customer must arrange with the utility to pay the bill or installment.

     2.  The postponement may be extended once for an additional 30 days if the utility receives a renewed medical certificate before the expiration of the original period of postponement.

     3.  The utility shall allow an installment period of up to 90 days for the customer to pay his or her bills. The utility may impose toll restriction upon the customer, for which the customer shall pay the rates and charges set forth in the tariff of the utility.

     4.  If the utility again intends to terminate service after a customer has obtained a postponement pursuant to subsection 1, the utility shall give written notice of its intended action:

     (a) To the Division; and

     (b) To the customer and any cosigner or guarantor of the customer in the manner provided by NAC 704.4165 and 704.417.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R061-17, 12-19-2017)

      NAC 704.419  Postponement of termination upon agreement to pay delinquent bill. (NRS 703.025, 704.210)

     1.  If the service of a customer is being terminated for nonpayment of a delinquent bill or any installment due on such a bill, the utility may postpone the termination, regardless of whether the customer is qualified to make deferred payments pursuant to NAC 704.413, if the utility determines that the customer is able to pay the amount owed and the customer signs a written agreement to make payment.

     2.  In determining whether a customer is able to pay the amount owed, the utility shall consider:

     (a) The amount owed;

     (b) The length of time the bill or installment is past due;

     (c) The date the account was established;

     (d) The history of payment maintained by the customer with the utility;

     (e) The credit history of the customer;

     (f) The period for payment;

     (g) Any commitment of money made on behalf of the customer by a governmental agency or an organization that assists persons unable to pay their bills, whether or not the money has actually been disbursed;

     (h) Whether the customer is elderly or a person with a disability;

     (i) Any other extraordinary circumstances of the case; and

     (j) Any information presented to the utility by the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4195  Restrictions on termination: Certain delinquent bills; weekends and holidays. (NRS 703.025, 704.210)  A utility may not terminate:

     1.  The service of a customer because of his or her failure to pay a delinquent bill for another class of service.

     2.  The service of a customer:

     (a) On a weekend, a holiday, or on the day before a weekend or a holiday, unless:

          (1) Extraordinary circumstances exist; or

          (2) The operations of the utility allow it to reestablish service immediately in an emergency.

     (b) Because of a delinquent bill incurred by a previous occupant of the location, unless the customer has signed a written agreement to assume liability for the previous service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4205  Contesting propriety of termination. (NRS 703.025, 704.210)

     1.  A customer whose service is terminated or is scheduled to be terminated by a utility may contact the Division to contest the propriety of the termination.

     2.  A statement of the provisions of subsection 1 must be set forth:

     (a) In any notice of termination issued pursuant to NAC 704.4165; or

     (b) In a section of each telephone directory issued by a utility. If this method is used, a reference to that section of the directory must be included in the notice of termination.

     3.  The statement required by subsection 2 must be accompanied by:

     (a) The mailing address and telephone number of the office of the Division nearest the customer;

     (b) The statewide toll-free telephone number of the Division;

     (c) If a bill is in dispute, a statement that the customer may be required by the utility to pay any disputed amount to the utility pending resolution of the appeal, subject to a refund if the appeal is successful;

     (d) A statement that special arrangements for the payment of any bill may be made if the customer is unable to pay immediately the full amount of the bill; and

     (e) A statement that a fee for reconnection or a deposit, or both, may be collected if service is terminated and subsequently restored.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.421  Resumption of service. (NRS 703.025, 704.210)

     1.  A utility shall resume service to a customer:

     (a) If he or she has complied with the requirements of the utility set forth in its tariff;

     (b) Upon the order of any court of competent jurisdiction or the Commission; or

     (c) Immediately upon a determination that failure to resume service would be especially dangerous to the health of the customer or any person who is a permanent resident of the premises where service is being provided.

     2.  If a utility temporarily suspends service to a customer because of nonpayment and the customer or another person or entity on behalf of the customer subsequently pays the utility in an amount that is sufficient to resume service, the utility shall resume service to the customer:

     (a) Within 24 hours after the time when the payment is received by the utility, if the payment is received by the utility on a day other than a Friday, Saturday, Sunday or legal holiday; or

     (b) By the end of the next business day, if the payment is received by the utility on a Friday, Saturday, Sunday or legal holiday.

     3.  A utility may charge a fee, as set forth in its tariff, to resume service to a customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

REGULATIONS CONCERNING CERTAIN TELECOMMUNICATION SERVICES

Interstate Pay-Per-Call Service

      NAC 704.423  Adoption by reference of standards of Federal Communications Commission. (NRS 703.025, 704.210, 704.215)

     1.  The Commission hereby adopts by reference:

     (a) The interstate pay-per-call standards of the Federal Communications Commission, 47 C.F.R. §§ 64.1501 to 64.1515, inclusive, and all definitions applicable to those sections; and

     (b) Any amendments made to those standards and definitions by the Federal Communications Commission.

     2.  The provisions of 47 C.F.R. §§ 64.1501 to 64.1515, inclusive, may be purchased by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://www.bookstore.gpo.gov, for the price of $40. Those provisions are also available, free of charge, from the Government Printing Office at the Internet address http://www.gpoaccess.gov/cfr/index.html.

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

Intrastate Long-Distance Service

      NAC 704.424  Resale of service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2 or as otherwise ordered by the Commission, no telephone company which provides a customer with intrastate long-distance telephone service may prohibit the customer from reselling or sharing that service, but the company may require the customer to subscribe to sufficient lines to avoid any blockages within the company’s system which might adversely affect any of its other customers.

     2.  The provisions of this section do not apply to a competitive supplier.

     (Added to NAC by Pub. Service Comm’n, eff. 8-26-83; A 12-19-89; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

Basic Network Service and Business Line Service

      NAC 704.4244  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.4244 to 704.42478, inclusive, do not apply to a competitive supplier.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008; A by R040-08, 9-18-2008)

      NAC 704.4247  “Promotional service” defined. (NRS 703.025, 704.210)  As used in NAC 704.4244 to 704.42478, inclusive, “promotional service” means a service that is offered by a small-scale provider of last resort to its customers:

     1.  For a limited time only; or

     2.  At a specific price for a limited time only.

     (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 704.42472  Limitations on types of promotional service that may be offered. (NRS 703.025, 704.210)  A service may only be offered as a promotional service if it is of a type whose rates, terms, and conditions are subject to the approval of the Commission.

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

      NAC 704.42474  Restrictions on offers of promotional service. (NRS 703.025, 704.210)  A promotional service may be offered only to a person who is not a customer of the service and must be offered uniformly to all similarly situated persons within the area in which the provider’s rates are averaged. Unless otherwise approved by the Commission, a promotional service may be offered for not more than a 3-month period and may only be offered to the same person or persons once in any 12-month period.

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

      NAC 704.42476  Written notice of certain offers of promotional service. (NRS 703.025, 704.210)  A small-scale provider of last resort may offer and provide a promotional service whose rates, charges, terms and conditions are not reflected in a filed tariff, upon 1-day written notice to the Commission. The notice must give a general description of the service and indicate the rate or charge.

     (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 704.42478  Application for inclusion of promotional service as tariffed service. (NRS 703.025, 704.210)  After offering a promotional service, a small-scale provider of last resort may apply to the Commission for inclusion of the promotional service as a tariffed service. The application to the Commission must contain rate schedules and tariff sheets that comply with the requirements of NAC 703.375 to 703.410, inclusive.

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

Change of Preferred Long Distance Carrier

      NAC 704.426  Slamming rules and remedies of Federal Communications Commission: Adoption by reference; administration and enforcement. (NRS 703.025, 704.210, 704.215)

     1.  For the purposes of this section, the Commission hereby adopts by reference:

     (a) The slamming rules and remedies of the Federal Communications Commission, 47 C.F.R. §§ 64.1100 to 64.1195, inclusive, and all definitions applicable to those sections; and

     (b) Any amendments made to those rules and remedies and definitions by the Federal Communications Commission.

     2.  The provisions of 47 C.F.R. §§ 64.1100 to 64.1195, inclusive, may be purchased by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://www.bookstore.gpo.gov, for the price of $40. Those provisions are also available, free of charge, from the Government Printing Office at the Internet address http://www.gpoaccess.gov/cfr/index.html.

     3.  Pursuant to the authority granted to state commissions by 47 C.F.R. § 64.1110, the Commission hereby declares its intention to administer and enforce the slamming rules and remedies of the Federal Communications Commission with regard to telecommunication providers that are subject to the jurisdiction of the Commission.

     4.  A telecommunication provider that is subject to the jurisdiction of the Commission shall not violate the slamming rules and remedies of the Federal Communications Commission.

     5.  Upon the request of a subscriber, a telecommunication provider that is subject to the jurisdiction of the Commission shall change the preferred long distance carrier of the subscriber in accordance with the procedures established by the slamming rules and remedies of the Federal Communications Commission.

     (Added to NAC by Pub. Utilities Comm’n by R059-02, eff. 2-17-2005; A by R136-07, 1-30-2008)

ELECTRICAL SAFETY CODE

      NAC 704.450  Adoption by reference of National Electrical Safety Code. (NRS 703.025, 704.210, 704.215)

     1.  The Commission hereby adopts by reference the National Electrical Safety Code in the form most recently approved by the American National Standards Institute and approved and published by the Institute of Electrical and Electronics Engineers, Inc., unless the Commission gives notice that the most recent publication is not suitable for this State pursuant to subsection 3.

     2.  The National Electrical Safety Code is available for the price of $151 per copy for members of the Institute of Electrical and Electronics Engineers, Inc., and $185 per copy for nonmembers from Techstreet, 3916 Ranchero Drive, Ann Arbor, Michigan 48108, or at the Internet address http://www.techstreet.com/ieee.

     3.  The Commission will review each revision of the publication adopted by reference pursuant to subsection 1 to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, it will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     [Pub. Service Commission, Gen. Order 25 § 2.0, eff. 5-5-82]—(NAC A by Pub. Utilities Comm’n by R127-99, 11-12-99; R011-15, 10-27-2015)

INTRASTATE TRANSPORTATION OF GAS

      NAC 704.455  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.455 to 704.465 inclusive, apply to all persons under the jurisdiction of the Commission who are engaged in the intrastate transportation of gas, including liquefied petroleum gas.

     [Pub. Service Comm’n, Gen. Order 17 § 1.2, eff. 12-28-81]—(NAC A 1-31-91; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

      NAC 704.460  Adoption by reference of certain federal regulations. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference the regulations contained in 49 C.F.R. Parts 191, 192, 193 and 199, in the form most recently published by the United States Government Printing Office, unless the Commission gives notice that the most recent publication is not suitable for this State pursuant to subsection 2. Copies of those parts are available at no charge from the United States Government Printing Office at the Internet address http://www.gpoaccess.gov.

     2.  If any publication adopted by reference pursuant to subsection 1 is revised, the Commission may review the revision to ensure its suitability for this State. If the Commission determines that the revision is not suitable for this State, the Commission will hold a public hearing to review its determination within 6 months after the date of publication of the revision and give notice of that hearing. If, after the hearing, the Commission does not revise its determination, the Commission will give notice within 30 days after the hearing that the revision is not suitable for this State. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     [Pub. Service Comm’n, Gen. Order 17 § 2.0, eff. 12-28-81]—(NAC A 3-7-86; 12-15-86; 6-29-88; 12-19-89; 9-7-90; 10-6-93; 9-13-94; 5-23-96; A by Pub. Utilities Comm’n by R053-98, 6-26-98; R018-00, 4-3-2000; R083-02, 7-15-2002; R030-04, 5-25-2004; R085-05, 10-31-2005; R016-06, 6-1-2006; R095-10, 10-15-2010)

      NAC 704.461  Adoption by reference of certain standards of National Fire Protection Association. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference Standard No. 58, NFPA 58: Liquefied Petroleum Gas Code, and Standard No. 59, NFPA 59: Utility LP-Gas Plant Code, in the form most recently published by the National Fire Protection Association, unless the Commission gives notice that the most recent publication is not suitable for this State pursuant to subsection 3.

     2.  Copies of these standards are available from the National Fire Protection Association, 11 Tracy Drive, Avon, Massachusetts 02322, or at the Internet address http://catalog.nfpa.org. The cost of a copy of Standard No. 58 is $58.00, and the cost of a copy of Standard No. 59 is $44.50.

     3.  The Commission will review each revision of the publications adopted by reference pursuant to subsection 1 to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, it will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91; A 5-23-96; A by Pub. Utilities Comm’n by R053-98, 6-26-98; R011-15, 10-27-2015)

      NAC 704.465  Certain reports and notifications required to be made concurrently to United States Department of Transportation and Commission. (NRS 703.025, 704.210)  Any report or notification made to the United States Department of Transportation pursuant to the federal regulations adopted by reference in NAC 704.460 must be filed concurrently with the Commission.

     [Pub. Service Comm’n, Gen. Order 17 § 3.0, eff. 12-28-81]—(NAC A by Pub. Utilities Comm’n by R107-07, 12-4-2007; R084-10, 12-16-2010)

CURTAILMENT OF DISTRIBUTION OF NATURAL GAS

      NAC 704.471  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.471 to 704.511, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.473 to 704.493, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.473  “Boiler fuel” defined. (NRS 703.025, 704.210)  “Boiler fuel” means natural gas which is used as a fuel for the generation of steam or electric power other than by combustion turbines.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.477  “Capability of using an alternative fuel” defined. (NRS 703.025, 704.210)  “Capability of using an alternative fuel” means the capability of using an alternative fuel whether or not the facilities which are necessary for that use have been installed.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.479  “Commercial use” defined. (NRS 703.025, 704.210)  “Commercial use” means the use of natural gas by persons, institutions, and governmental entities, primarily for the sale of goods or the provision of services. The term does not include the manufacture of goods or the generation of electric power.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.481  “Correctional facility” defined. (NRS 703.025, 704.210)  “Correctional facility” means a facility used primarily to house, confine, or otherwise limit the activities of persons who have been assigned to the facility pursuant to a sentence of a court of law.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.483  “Firm requirement” defined. (NRS 703.025, 704.210)  “Firm requirement” means a customer’s requirement for natural gas where the gas is to be provided pursuant to a schedule or contract under which:

     1.  The utility is expressly obligated to deliver specific volumes of gas within a given period; and

     2.  The parties anticipate no interruption of service but the utility is permitted to interrupt the service in any situation where its ability to supply customers having a higher priority is threatened.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.487  “Hospital” defined. (NRS 703.025, 704.210)  “Hospital” means a facility primarily used for medical care of patients who remain at the facility, but the term does not include an outpatient clinic.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.489  “Industrial use” defined. (NRS 703.025, 704.210)  “Industrial use” means the use of natural gas by persons engaged primarily in a process which creates or changes raw or unfinished materials into another form or product or which generates electric power.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.491  “Interruptible requirement” defined. (NRS 703.025, 704.210)  “Interruptible requirement” means a customer’s requirement for natural gas where the gas is to be provided pursuant to a schedule or contract under which:

     1.  The utility is not expressly obligated to deliver specific volumes within a given period; and

     2.  The parties anticipate interruption of service and the utility is permitted to interrupt the service on short notice.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.493  “School” defined. (NRS 703.025, 704.210)  “School” means a facility used primarily for instruction of regularly enrolled students in attendance at the facility. The term does not include a facility used for both educational and noneducational activities unless the noneducational activities are incidental to the instruction.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.497  Purpose; applicability. (NRS 703.025, 704.210)

     1.  The purpose of NAC 704.471 to 704.511, inclusive, is to establish priorities and procedures for curtailment of the distribution of natural gas in Nevada.

     2.  NAC 704.471 to 704.511, inclusive, apply to all utilities which are under the jurisdiction of the Commission and which distribute natural gas in this State.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.499  Duty to deliver continuous supply and avoid shortages, interruptions. (NRS 703.025, 704.210)  Each utility shall:

     1.  Exercise reasonable diligence and care to obtain and deliver a continuous and sufficient supply of natural gas to its customers; and

     2.  To the extent possible, avoid any shortage or interruption in its delivery of natural gas.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.501  Priorities in curtailment of service. (NRS 703.025, 704.210)  During periods of reduced availability of natural gas, each utility shall supply natural gas to its customers (whether they are being served directly or indirectly) in the following order of priorities:

     1.  First priority (P-1) must be given, without relative priority among the classes, for use in:

     (a) Commercial establishments using less than 50 Mcf of natural gas on a peak day.

     (b) Hospitals, nursing homes, and convalescent homes, but not for the offices of practitioners of the healing arts.

     (c) Police and correctional facilities.

     (d) Residences.

     (e) Sanitary facilities which use natural gas for disposing of refuse or otherwise protecting the health of the community.

     (f) Schools.

     2.  Second priority (P-2) must be given for the following uses, with relative priority in the order listed:

     (a) Essential agricultural uses, certified by the United States Secretary of Agriculture pursuant to 15 U.S.C. § 3391 as the section existed on November 6, 1980 (P-2a).

     (b) Essential industrial process or uses as feedstock, certified by the United States Secretary of Energy pursuant to 15 U.S.C. § 3392 as the section existed on November 6, 1980 (P-2b).

     (c) Other uses (P-2c), without any relative priority among the subclasses:

          (1) Commercial uses involving 50 Mcf or more of natural gas on a peak day.

          (2) Uses, pursuant to firm requirements, of natural gas for protection of industrial plants and for industrial feedstocks and processes. The volumes of gas which may be supplied under this priority for protection of a customer’s plant are the minimum volumes required to prevent physical harm to the facilities in the plant, to prevent danger to the personnel, and to protect any material in the process of manufacture if the customer cannot carry out those purposes by the use of some alternative fuel other than propane or another gaseous fuel. This priority must not be given just to enable a customer to maintain production in his or her plant.

          (3) A utility’s injection of natural gas into storage to meet its reasonable requirements for later distribution to its customers (customer storage injection volumes).

     3.  Third priority (P-3) must be given for any industrial use which is not included in any other priority.

     4.  Fourth priority (P-4) must be given for any industrial use of natural gas as a boiler fuel upon a firm requirement if the volume of gas to be used is less than 3,000 Mcf per day but more than 1,500 Mcf per day and the customer has the capability of using an alternative fuel to fulfill the requirement.

     5.  Fifth priority (P-5) must be given for any industrial use of natural gas as a boiler fuel upon a firm requirement if the volume of gas to be used is 3,000 Mcf or more per day and the customer has the capability of using an alternative fuel to fulfill the requirement.

     6.  Sixth priority (P-6) must be given for any use, upon an interruptible requirement, of more than 300 Mcf per day but less than 1,500 Mcf per day of natural gas if the customer has the capability of using an alternative fuel to fulfill the requirement.

     7.  Seventh priority (P-7) must be given for a use, upon an interruptible requirement, of 1,500 Mcf or more per day but less than 3,000 Mcf per day of natural gas if the customer has the capability of using an alternative fuel to fulfill the requirement.

     8.  Eighth priority (P-8) must be given for a use, upon an interruptible requirement, of 3,000 Mcf or more per day but less than 10,000 Mcf per day of natural gas if the customer has the capability of using an alternative fuel to fulfill the requirement.

     9.  Ninth priority (P-9) must be given for a use, upon an interruptible requirement, of 10,000 Mcf or more per day of natural gas if the customer has the capability of using an alternative fuel to fulfill the requirement.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.503  Lower level of priority to be fully curtailed before higher level; partial curtailments. (NRS 703.025, 704.210)

     1.  Before a utility may curtail in full its supply of natural gas to a customer who is entitled to a particular level of priority, the utility must curtail in full its supply to all its customers in lower levels of priority.

     2.  Any partial curtailment of supply within a priority must be made in proportion to the stated daily requirements for natural gas of each customer entitled to that priority.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.507  Curtailment in emergencies. (NRS 703.025, 704.210)

     1.  If a utility determines that an emergency is threatened which would cause an immediate forced termination of service to a major portion of its customers, it may curtail service to any customer, regardless of his or her assigned priority. Any customer who does not comply with the curtailment is subject to termination of service by the utility.

     2.  During such an emergency the utility shall first make every practicable effort to curtail service to those customers having the capability of using an alternative fuel.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.509  Distribution of new supply made available by customer. (NRS 703.025, 704.210)  If a customer has made available to a utility a new supply of natural gas which would not otherwise be available to the utility, it shall distribute the new supply as follows:

     1.  On any day when the utility is having to curtail its distribution of natural gas to customers whose requirements are entitled to the first priority, the utility shall use the new supply to meet those requirements.

     2.  On any day when the utility is having to curtail its distribution to customers with firm requirements inferior to the first priority, the utility shall maintain the highest level of service to the customer who made available the new supply but only to the extent of the utility’s obligation for daily delivery to that customer, as set forth in the applicable agreement between the customer and the utility.

     3.  On any day when the utility has fulfilled its obligation for daily delivery to the customer who made the new supply available, any additional volumes of gas must be used to augment the utility’s base supply.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.511  Information to be furnished to suppliers and obtained from customers. (NRS 703.025, 704.210)  Each utility shall:

     1.  Provide its suppliers the information necessary to carry out NAC 704.471 to 704.511, inclusive; and

     2.  As a condition precedent to the delivery of natural gas to a customer, require from him or her the information that is necessary to determine the customer’s priority.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

NATURAL GAS SUPPLIED TO GENERATING, INDUSTRIAL AND LARGE COMMERCIAL CUSTOMERS

      NAC 704.516  Definitions. (NRS 703.025, 704.075, 704.210)  As used in NAC 704.516 to 704.528, inclusive, unless the context otherwise requires:

     1.  The words and terms defined in subsection 1 of NRS 704.075 have the meanings ascribed to them in that subsection.

     2.  “Schedule” means the tariff sheet that identifies the range of rates and charges, or the mechanisms pursuant to which such rates and charges may be determined, filed pursuant to NAC 704.518.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97)

      NAC 704.517  Applicability. (NRS 703.025, 704.075, 704.210)  NAC 704.516 to 704.528, inclusive, apply only to rates for natural gas transported for or sold to generating, industrial and large commercial customers.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97)

      NAC 704.518  Rates and charges: Schedule; contract for special services; customer subject to schedule or contract; establishment by utility; exemption from certain provisions. (NRS 703.025, 704.075, 704.210)

     1.  A utility which supplies natural gas may file with the Commission a schedule to be applied to generating, industrial and large commercial customers served by the utility. The schedule:

     (a) Must set forth the terms and conditions of service and the range of rates, or the mechanisms pursuant to which such rates may be determined; and

     (b) May include different rates for customers within the same class.

     2.  A utility may provide service to a generating, industrial or large commercial customer pursuant to a schedule filed pursuant to subsection 1 if the customer notifies the utility in writing in a manner acceptable to the utility that the customer wishes to be billed pursuant to the schedule and the customer has demonstrated to the utility that:

     (a) The customer is capable of using a fuel other than natural gas; or

     (b) A bona fide alternative to purchasing service from the utility is available to the customer.

     3.  If a utility which seeks to transport natural gas for or sell natural gas to a generating, industrial or large commercial customer:

     (a) Does not have a schedule approved by the Commission on file with the Commission pursuant to subsection 1;

     (b) Seeks to charge a rate that is outside of the limits established by the schedule of the utility approved for transporting natural gas for or selling natural gas to a generating, industrial or large customer; or

     (c) Seeks terms and conditions of service outside those set forth in the schedule of the utility approved for transporting natural gas for or selling natural gas to a generating, industrial or large commercial customer,

Ê the utility shall file with the Commission an application for the approval of a contract for special services between the utility and the generating, industrial or large commercial customer. A contract for special services must specify the method, terms, conditions and rates by which the services are to be rendered to the customer. A utility shall not provide service to a generating, industrial or large customer pursuant to a contract of special services until the contract is approved by the Commission.

     4.  A utility may provide service to a generating, industrial or large commercial customer pursuant to a contract for special services if the customer notifies the utility in writing in a manner acceptable to the utility that the customer wishes to be billed pursuant to such a contract and the customer has demonstrated to the utility that:

     (a) The customer is capable of using a fuel other than natural gas; or

     (b) A bona fide alternative to purchasing service from the utility is available to the customer.

     5.  The rates and charges under a schedule or a contract for special services filed pursuant to this section must be established by the utility which supplies natural gas after consultation with each affected customer. The utility shall consider the value to the customer of using natural gas as opposed to using an alternative fuel and the cost to the utility of providing the service.

     6.  Filings, pursuant to NAC 704.516 to 704.528, inclusive, are exempt from the provisions of NRS 704.100 and 704.110, except that any tariff, schedule or contract for special services that is filed is subject to the provisions of NRS 704.100 and 704.110 governing the time in which the Commission must take action on such filings.

     7.  As used in this section:

     (a) “Bona fide alternative” means an option available to a customer:

          (1) Which is economically and operationally feasible; and

          (2) For which the cost to the customer to bypass the system of the utility is less than the marginal cost needed for the utility to serve that customer.

     (b) “Contract for special services” means a contract which is filed by a utility in lieu of a schedule and which specifies the methods, terms, conditions and rates by which services are to be rendered to a generating, industrial or large commercial customer.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97; R047-02, 10-24-2002)

      NAC 704.519  Schedule of rates and charges: Effective date. (NRS 703.025, 704.075, 704.210)  A schedule becomes effective the date specified in the schedule except it may not take effect before it is filed with the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86)

      NAC 704.521  Schedule of rates and charges: Written justification. (NRS 703.025, 704.075, 704.210)  A schedule filed by a utility must include or be accompanied by a written justification for each rate and charge in the schedule.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97)

      NAC 704.522  Procedure for changing level of rate. (NRS 703.025, 704.075, 704.210)

     1.  The utility may change the level of a rate within an established range of rates pursuant to a schedule approved by the Commission for generating, industrial or large commercial customers by filing a memorandum with the Commission stating the new level of the rate, the name of the affected customer and the effective date of the change.

     2.  As used in this section, “memorandum” means a written notice from a utility to the Commission of any change to rates or any changes to a schedule approved by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97)

      NAC 704.524  Notification of customers of change in rates and charges. (NRS 703.025, 704.075, 704.210)  The utility supplying natural gas shall notify each customer covered by the schedule of any change in the rates and charges at least 1 day before the effective date of the change.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86)

      NAC 704.526  Filing of list identifying schedule and affected customers; notice to customers. (NRS 703.025, 704.075, 704.210)

     1.  Before submitting a bill to a customer affected by a schedule, a utility shall file a list with the Commission identifying:

     (a) The customers covered by the schedule; and

     (b) The schedule applicable to each customer or group of customers.

     2.  The utility shall notify each customer of its inclusion on the list at least 1 day before it files the list with the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86)

      NAC 704.527  Filing copy of lists with Consumer’s Advocate. (NRS 703.025, 704.075, 704.210)  A copy of any schedule or list filed pursuant to NAC 704.518 or 704.526 must be filed with the Consumer’s Advocate on the same date the schedule or list is filed with the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86)

      NAC 704.528  Violations: Action by Commission. (NRS 703.025, 704.075, 704.210)  An investigation and public hearing to determine whether a utility has violated a provision of NAC 704.516 to 704.528, inclusive, may be ordered by the Commission, either upon its own motion or upon receipt of a complaint. If the Commission finds that any of the provisions of NAC 704.516 to 704.528, inclusive, have not been followed, it will:

     1.  Notify the utility that the schedule or list is no longer in effect because of its failure to follow the requirements of NAC 704.516 to 704.528, inclusive;

     2.  Require the utility to modify the schedule or list to comply with NAC 704.516 to 704.528, inclusive; or

     3.  Take any other appropriate action.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86)

SYSTEMS FOR DISTRIBUTION OF LIQUEFIED PETROLEUM GAS

      NAC 704.531  Definitions. (NRS 703.025, 704.097, 704.210)  As used in NAC 704.531 to 704.537, inclusive, unless the context otherwise requires:

     1.  “Alternative method” means a method used by an operator to determine the margin rates in lieu of filing a general rate application pursuant to NRS 704.110.

     2.  “Captive customers” means customers who:

     (a) Purchase liquefied petroleum gas for consumption in this State from an operator who operates a system for the distribution of liquefied petroleum gas to 10 or more users at rates that are regulated by the Commission; and

     (b) Do not have an economically feasible and practical alternative for bypassing the system.

     3.  “Cost of service” means the costs incurred by an operator to own, maintain and operate the system and includes, without limitation, operating and maintenance expenses, depreciation expenses, operating and income taxes, debt service coverage and a return on invested capital to shareholders.

     4.  “Margin rates” means any fixed charges and any charges per sales unit assessed by an operator to recover the cost of service of an operator.

     5.  “Non-captive customers” means customers who purchase liquefied petroleum gas for consumption in this State at rates that are not regulated by the Commission.

     6.  “Operator” means a person who operates one or more systems under common ownership and control, with a combined capacity to serve 10 or more users in a contiguous area.

     7.  “Reporting period” means January 1 through December 31 of the year preceding the filing of an annual report.

     8.  “System” means a network of pipes, valves, regulators, meters, containers and their appurtenances, and other physical facilities used by an operator for the distribution of liquefied petroleum gas.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R031-19, 10-30-2019)

      NAC 704.5315  Applicability. (NRS 703.025, 704.097, 704.210)  The provisions of NAC 704.531 to 704.537, inclusive, apply to each public utility whose rates are subject to the jurisdiction of the Commission pursuant to NRS 704.097.

     (Added to NAC by Pub. Utilities Comm’n by R031-19, eff. 10-30-2019)

      NAC 704.532  Certificate of public convenience and necessity. (NRS 703.025, 704.210, 704.330)

     1.  An operator of a system must apply for and receive a certificate of public convenience and necessity from the Commission to operate the system.

     2.  In the case of a system in operation before January 31, 1991, the application for a certificate of public convenience and necessity must include:

     (a) The name, principal business address, and telephone number of the operator;

     (b) The location of the system;

     (c) The size and number of liquefied petroleum gas containers serving the system;

     (d) The number of services, both active and inactive, connected to each container or group of containers;

     (e) The year the system was installed and the date of each subsequent expansion or modification of the system, as closely as is known;

     (f) The current number of customers served by the system;

     (g) The name and address of the current supplier of bulk liquefied petroleum gas to the system;

     (h) The current price charged by the operator for liquefied petroleum gas service, including the price of liquefied petroleum gas delivered per unit volume and the amount of any other charges assessed to a customer;

     (i) The current price per unit volume paid by the operator for delivery of bulk liquefied petroleum gas to the system;

     (j) The quantity of liquefied petroleum gas currently on hand, as closely as is known;

     (k) A copy of any contract entered into with the supplier of bulk liquefied petroleum gas to the system;

     (l) A copy of the written explanation of the procedure described in NAC 704.535; and

     (m) A copy of the plans and procedures required by the regulations adopted pursuant to NAC 704.460.

     3.  A certificate of public convenience and necessity will not be issued for a system in operation before January 31, 1991, until the system has been inspected for compliance with the regulations adopted pursuant to NAC 704.460.

     4.  In the case of a system installed and placed into operation on or after January 31, 1991, an application for a certificate of public convenience and necessity must include:

     (a) The name, principal business address, and telephone number of the proposed operator;

     (b) The location of the proposed system;

     (c) The proposed size and number of liquefied petroleum gas containers serving the system;

     (d) The proposed number of services connected to each container or group of containers;

     (e) The name and address of the supplier who is expected to provide bulk liquefied petroleum gas to the system;

     (f) The anticipated price to be charged for liquefied petroleum gas service, including the price of liquefied petroleum gas delivered per unit volume and the amount of any other charges assessed to a customer;

     (g) The current available price range per unit volume for bulk liquefied petroleum gas;

     (h) A copy of any contract entered into with the intended supplier of bulk liquefied petroleum gas to the system;

     (i) The names and addresses of the suppliers of bulk liquefied petroleum gas serving the area where the proposed system is to be located;

     (j) A copy of the written explanation of the procedure described in NAC 704.535;

     (k) A copy of the plans and procedures required by the regulations adopted pursuant to NAC 704.460;

     (l) Copies of design and construction drawings for the system, including details for the installation of containers, distribution piping and meters, and a list of materials; and

     (m) The estimated cost of the proposed system.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91)

      NAC 704.533  Duties of operator. (NRS 703.025, 704.210)

     1.  An operator shall:

     (a) Provide facilities and service which are reasonably adequate at just and reasonable rates.

     (b) Provide a method for receiving and acting on complaints by customers in accordance with NAC 704.537.

     (c) Design, install, construct, inspect, test, operate and maintain the system in accordance with the applicable regulations adopted pursuant to NAC 704.460 and 704.461.

     (d) File with the Commission an annual report for the reporting period in accordance with NAC 704.225 and 704.534.

     (e) Provide each of the customers of the system with a written explanation of the procedure for responding to an emergency in accordance with NAC 704.535.

     (f) Bill each of the customers of the system for the amount of liquefied petroleum gas delivered. The names of the customer and operator, the dates of the beginning and end of the billing period, the meter readings for the dates of the beginning and end of the billing period, the quantity consumed, the price of liquefied petroleum gas, any other authorized charge, and the total charge must be clearly stated on the bill. The format for the bill must make it possible for the customer to calculate easily the total amount due as shown on the bill.

     (g) Notify each of the customers of the system in writing of any change in the charge for owning, operating and maintaining the system or any change in the price of liquefied petroleum gas of 10 percent or more, not later than 5 days after the date on which the increase becomes effective.

     (h) Maintain for not less than 3 years records of all expenditures and collections for liquefied petroleum gas service.

     (i) Maintain records evidencing compliance with the requirements contained in the regulations adopted pursuant to NAC 704.460 for at least the period specified in those regulations or 3 years, whichever is longer.

     2.  The records required to be maintained pursuant to this section must be easily accessible for review by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91; A by Pub. Utilities Comm’n by R062-07, 10-31-2007)

      NAC 704.534  Annual report. (NRS 703.025, 703.191, 704.210)  In addition to the information required by NAC 704.225, an annual report must contain:

     1.  The name, principal business address and telephone number of the operator.

     2.  The name and title of the person making the report.

     3.  The location of the system.

     4.  The size and number of liquefied petroleum gas containers used in serving the system and the current number of customers, both active and inactive, served from each container or group of containers.

     5.  The highest, lowest and last price charged for liquefied petroleum gas service during the reporting period, including the price of liquefied petroleum gas delivered per unit volume and the amount of any other charges assessed to customers.

     6.  The highest, lowest and last price per unit volume paid by the operator for delivery of bulk liquefied petroleum gas to the system during the reporting period.

     7.  The name of the current supplier of bulk liquefied petroleum gas to the system.

     8.  A summary of all expenditures and collections for liquefied petroleum gas service during the reporting period, including a summary of expenses of operation and maintenance.

     9.  A copy of the written explanation of the procedure described in NAC 704.535.

     10.  The number of complaints related to safety, service and billing received during the reporting period and a brief explanation of the action that the operator took to respond to all such complaints.

     11.  A brief explanation of all action taken by the operator to correct any unsafe conditions which were identified during the reporting period.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91; A by Pub. Utilities Comm’n by R062-07, 10-31-2007)

      NAC 704.535  Procedure for reporting emergencies. (NRS 703.025, 704.210)

     1.  An operator of a system shall furnish to each customer of the system a written explanation of the procedure to be used to report gas leaks and other related emergencies. The explanation must include:

     (a) A telephone number at which the operator can be contacted during regular working hours;

     (b) A telephone number for reporting emergencies during nonworking hours;

     (c) The telephone numbers of emergency response agencies, including, without limitation, the local police and fire departments; and

     (d) The following phone numbers of the Commission:

          (1) Clark County, (702) 486-6578.

          (2) Washoe County and Carson City, (775) 687-6004.

          (3) All other areas in Nevada, (800) 992-0900.

     2.  The procedure must be updated and reissued as often as is necessary, but at least once each calendar year.

     3.  As used in this section, “regular working hours” means Monday through Friday, 8 a.m. to 5 p.m., except holidays.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91)

      NAC 704.536  Allowable charges; application to Commission to use alternative method; refund of overcharge. (NRS 703.025, 704.097, 704.210)

     1.  An operator shall not charge a price for liquefied petroleum gas which exceeds its average inventory price for the billing period.

     2.  In addition to the price charged for liquefied petroleum gas and except as otherwise provided in this subsection, an operator may assess just and reasonable margin rates. Except as otherwise provided by subsection 3, the margin rates which an operator is authorized to charge must be established in a general rate application proceeding before the Commission pursuant to NRS 704.110.

     3.  With the consent of the Commission, an operator may adopt and use an alternative method to determine its margin rates in lieu of filing a general rate application pursuant to NRS 704.110. An operator who elects to use an alternative method shall submit an application pursuant to NAC 704.5364 for determination by the Commission as to whether the margin rates charged by the operator during the immediately preceding fiscal year were just and reasonable.

     4.  A customer is entitled to a refund of any overcharge. The operator shall refund the amount of the overcharge plus interest as established by the Commission pursuant to NRS 704.655 from the date the overcharge was paid by the customer. The refund must, at the election of the operator, be made by cash payment or by a reduction in the next billing after the overcharge is discovered.

     5.  As used in this section, “average inventory price” means the total cost of liquefied petroleum gas available for sale, divided by the amount of liquefied petroleum gas available for sale as calculated for each billing period. For the purpose of this section, the liquefied petroleum gas available for sale is the amount on hand at the beginning of the operator’s billing period, plus the amount of liquefied petroleum gas purchased by the operator during that period.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R031-19, 10-30-2019)

      NAC 704.5364  Application for approval of margin rates by operator who uses alternative method: Annual submission to Commission; contents. (NRS 703.025, 704.097, 704.210)

     1.  An operator who pursuant to subsection 3 of NAC 704.536 obtains the consent of the Commission to use an alternative method shall submit to the Commission, on or before January 31 of each calendar year, an application for approval of the margin rates assessed by the operator during the operator’s immediately preceding fiscal year. An operator who submits an application to the Commission pursuant to this section may request that the application and information included with the application not be disclosed and be made confidential pursuant to NAC 703.5274.

     2.  An application submitted pursuant to this section must include, without limitation:

     (a) Monthly billing data for the immediately preceding fiscal year for the captive customers of the operator with service addresses in Nevada in the same customer class for which the operator is seeking to use an alternative method;

     (b) Monthly billing data for the immediately preceding fiscal year for non-captive customers of the operator with service addresses in Nevada that have liquefied petroleum gas tanks with a combined nominal capacity of not less than 250 gallons and not more than 3,000 gallons and who are in the same customer class for which the operator is seeking to use an alternative method; and

     (c) Such information as is necessary to demonstrate that the margin rates assessed by the operator were just and reasonable, which may include, without limitation, information which justifies disparities in the margin rates, if any.

     (Added to NAC by Pub. Utilities Comm’n by R031-19, eff. 10-30-2019)

      NAC 704.5366  Application for approval of margin rates by operator who uses alternative method: Analysis, determinations and recommendations of Regulatory Operations Staff of Commission; response or request for hearing by operator or interested person; hearing; written order by Commission; actions by operator if margin rates not just and reasonable. (NRS 703.025, 704.097, 704.210)

     1.  Upon receipt of an application submitted to the Commission pursuant to NAC 704.5364, the Regulatory Operations Staff of the Commission shall analyze the documentation and information provided by the operator to determine whether the margin rates assessed by the operator during the operator’s immediately preceding fiscal year were just and reasonable.

     2.  Following the analysis conducted pursuant to subsection 1 and not later than 90 days after the operator submitted the application to the Commission pursuant to NAC 704.5364, the Regulatory Operations Staff shall file with the Commission and serve on the parties a memorandum setting forth the determinations and recommendations of the Regulatory Operations Staff with respect to the application and recommending any other action by the Commission that the Regulatory Operations Staff may deem reasonable under the circumstances. The memorandum of the Regulatory Operations Staff must include documentation to support the recommendations contained therein, including, without limitation, an explanation of the analysis performed and any other information determined by the Regulatory Operations Staff to be relevant to the determinations and recommendations of the Regulatory Operations Staff. Information and documentation included in or with the memorandum filed with the Commission pursuant to this subsection may be made confidential in accordance with NAC 703.5274.

     3.  Not later than 10 business days after the Regulatory Operations Staff files with the Commission the memorandum required by subsection 2, the operator or any interested person may file with the Commission a response to the memorandum or request a hearing on the application submitted pursuant to NAC 704.5364, or both. Upon the request of the operator or the Regulatory Operations Staff, the Commission will hold a hearing on the application. If no request for a hearing is received by the Commission, the Commission will dispense with the hearing and take action upon the application, unless the Commission finds that a hearing is necessary or otherwise required by statute.

     4.  Not later than 60 days after the Regulatory Operations Staff files with the Commission the memorandum required by subsection 2, the Commission will issue a written order setting the application for hearing pursuant to subsection 3 or a written order approving the application and finding that the margin rates assessed by the operator during the immediately preceding year were just and reasonable in accordance with the requirements of subsection 1. At a hearing, the operator has the burden of proving that its margin rates were just and reasonable.

     5.  If the Commission determines that the margin rates assessed by the operator during the operator’s immediately preceding fiscal year were not just and reasonable, the Commission may order the operator to:

     (a) File a general rate application pursuant to NRS 704.110 within the time frame set forth by the Commission; or

     (b) Make changes to the alternative method within the time frame set forth by the Commission.

     6.  If an operator is ordered by the Commission to make changes to the alternative method pursuant to paragraph (b) of subsection 5, the operator may elect to make such changes or may instead file a general rate application pursuant to NRS 704.110.

     (Added to NAC by Pub. Utilities Comm’n by R031-19, eff. 10-30-2019)

      NAC 704.537  Complaints and inquiries. (NRS 703.025, 704.210)  An operator of a system shall advise customers of the system that complaints or inquiries concerning rates, billing, safety, and the provision of liquefied petroleum gas service generally should be directed to the operator. The operator shall establish a reasonable procedure for responding to these complaints and inquiries. The operator shall advise any customer who complains or inquires that he or she may bring the matter before the Division of Consumer Complaint Resolution of the Commission if the complaint cannot be resolved in a reasonable manner.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91)

WATER SERVICE AND SEWAGE SERVICE

General Provisions

      NAC 704.561  Adoption by reference of Uniform System of Accounts for certain water and wastewater utilities. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference the Uniform System of Accounts for:

     (a) Class A Water Utilities, 1996 edition, which is available for the price of $30.00.

     (b) Class B Water Utilities, 1996 edition, which is available for the price of $24.00.

     (c) Class C Water Utilities, 1996 edition, which is available for the price of $18.00.

     (d) Class A Wastewater Utilities, 1996 edition, which is available for the price of $31.20.

     (e) Class B Wastewater Utilities, 1996 edition, which is available for the price of $25.20.

     (f) Class C Wastewater Utilities, 1996 edition, which is available for the price of $19.20.

Ê A copy of the publications may be obtained from the National Association of Regulatory Utility Commissioners, 1101 Vermont Avenue, N.W., Suite 200, Washington, D.C. 20005, or at the Internet address http://naruc.org/Store.

     2.  The Commission will review each revision of the publications adopted by reference pursuant to this section to ensure its suitability for the State. If the Commission determines that the revision is not suitable for this State, it will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to this section.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

Resource Planning

      NAC 704.565  Definitions. (NRS 703.025, 704.210, 704.661)  As used in NAC 704.565 to 704.5688, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.5651 to 704.5658, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5651  “Action plan” defined. (NRS 703.025, 704.210, 704.661)  “Action plan” means a detailed specification of the actions that a utility intends to take to meet its water demand, supply and wastewater treatment requirements during the 3 years immediately following the year in which its resource plan is filed with the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5652  “Conservation plan” defined. (NRS 703.025, 704.210, 704.661)  “Conservation plan” means the plan developed by a utility for water conservation for the term of a resource plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5653  “Funding plan” defined. (NRS 703.025, 704.210, 704.661)  “Funding plan” means the plan developed by a utility that demonstrates the financial impact of an action plan on the utility and its customers.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5654  “Resource plan” defined. (NRS 703.025, 704.210, 704.661)  “Resource plan” means the plan developed by a utility for the provision of water or services for the disposal of the sewage of its customers for a period of 20 years immediately following the year in which the resource plan is filed with the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5655  “Utility” defined. (NRS 703.025, 704.210, 704.661)  “Utility” means a public utility that is required to submit a resource plan pursuant to NRS 704.661.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5656  “Wastewater treatment” defined. (NRS 703.025, 704.210, 704.661)  “Wastewater treatment” means any service for the disposal of sewage. The term includes, without limitation, the collection of sewage, disposal of effluent and the reclamation of water.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5657  “Water supply and wastewater treatment plan” defined. (NRS 703.025, 704.210, 704.661)  “Water supply and wastewater treatment plan” means the plan developed by a utility to meet its forecasted demand for water and requirements for wastewater treatment during the term of a resource plan. The term includes a wastewater treatment plan submitted by a utility that provides only services for the disposal of sewage.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5658  “Water year” defined. (NRS 703.025, 704.210, 704.661)  “Water year” means the amount of precipitation recorded on an annual basis by an entity in the region where the utility is located.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.566  Provision of overview of resource plan to certain entities before filing. (NRS 703.025, 704.210, 704.661)  A utility must, not later than 4 months before the date on which the utility intends to file its resource plan with the Commission, meet with the Bureau of Consumer Protection in the Office of the Attorney General and the Regulatory Operations Staff of the Commission and provide an overview of the utility’s resource plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5661  Resource plan: Summary. (NRS 703.025, 704.210, 704.661)  The resource plan of a utility must be accompanied by a summary that is suitable for distribution to the public. Any tables, graphs or maps used in the summary must be easily interpretable by the public. The summary must include, without limitation:

     1.  A brief introduction that describes the utility, its facilities and the purpose and duration of the resource plan;

     2.  A statement that identifies the issues relating to the supply of water and services for the disposal of sewage and the utility’s strategy for addressing those issues;

     3.  A description of the criteria used by the utility to develop the resource plan, including, without limitation, a summary of each forecast prepared by the utility pursuant to NAC 704.5667;

     4.  A statement that identifies the utility’s current and projected requirements during the term of the resource plan for each of the following:

     (a) Water supply;

     (b) Water rights;

     (c) Storage;

     (d) Transmission and distribution system;

     (e) Fire flows and fire hydrants;

     (f) Wastewater treatment; and

     (g) Water conservation; and

     5.  The methods that the utility proposes to use to fund the costs related to the resource plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5662  Resource plan: General requirements. (NRS 703.025, 704.210, 704.661)  The resource plan of a utility must include, without limitation:

     1.  The current and historical ownership and organization of the utility;

     2.  The name and qualifications of each person who participated in the development of the resource plan;

     3.  A description of the manner in which the information in the resource plan is organized and a definition of each specialized term, acronym or abbreviation used in the resource plan;

     4.  A description of the utility’s service area, including, without limitation, the number of customers in each class of service within the service area;

     5.  A statement identifying the issues relating to the supply of water and services for the disposal of sewage;

     6.  The objectives of the resource plan; and

     7.  A map that indicates the geographic areas included in the resource plan. Each map must indicate the portion of the service area of the utility indicated on the map:

     (a) The service area of the utility included in the resource plan;

     (b) The locations of the utility’s facilities;

     (c) The location of all water supplies that are owned by the utility or under contract to the utility;

     (d) The interconnections between the utility’s system and the systems of other utilities and suppliers of water;

     (e) The utility’s facilities for water transmission; and

     (f) The location of each site for:

          (1) The collection of sewage;

          (2) The treatment of wastewater;

          (3) The disposal of effluent;

          (4) The reclamation of water; and

          (5) Any other type of treatment of wastewater that is under contract to the utility.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5663  Resource plan: Identification of inapplicable regulatory provisions. (NRS 703.025, 704.210, 704.661)  If a utility believes that any provision of NAC 704.565 to 704.5688, inclusive, is not applicable to the utility, it must identify the provision in its resource plan and demonstrate why the provision is not applicable to the utility.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5664  Resource plan: Written testimony. (NRS 703.025, 704.210, 704.661)  The resource plan of a utility must include written testimony in support of the resource plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5665  Resource plan: Integrated analysis. (NRS 703.025, 704.210, 704.661)

     1.  The resource plan of a utility must include and provide an integrated analysis of the utility’s:

     (a) Conservation plan;

     (b) Water supply and wastewater treatment plan;

     (c) Funding plan; and

     (d) Action plan.

     2.  The analysis must establish priorities among the utility’s options for water conservation, water supply, wastewater treatment and funding to enable the Commission to determine the extent to which the utility’s action plan balances the objectives of minimizing cost, mitigating risk and maximizing reliability of service over the term of the action plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5666  Resource plan: Technical appendix. (NRS 703.025, 704.210, 704.661)

     1.  The resource plan of a utility must include a technical appendix. The appendix must be prepared in sufficient detail to enable a technically proficient person to:

     (a) Understand how the resource plan, including, without limitation, the forecasts required pursuant to NAC 704.5667, was prepared;

     (b) Verify the adequacy and accuracy of the data used to develop the resource plan; and

     (c) Evaluate the validity of the assumptions and methods used to develop the resource plan.

     2.  The appendix must include, without limitation:

     (a) A list of the major assumptions used to develop the resource plan;

     (b) A description of the forecasting methods used to develop the resource plan;

     (c) A description of any computer software used to develop the resource plan;

     (d) Citations to the sources of all significant information used to develop the resource plan;

     (e) A description of each model and formula used, including documentation to the extent consistent with any proprietary restrictions imposed upon the utility by a supplier of a model;

     (f) Descriptions of all data inputs to the models used to develop the resource plan and an explanation of any modifications made to the data;

     (g) The final results derived from the models used to develop the resource plan; and

     (h) Projections of the availability and cost of water rights for the term of the resource plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5667  Resource plan: Forecasts; inconsistent water sources; changes in methodology of forecasting. (NRS 703.025, 704.210, 704.661)

     1.  The resource plan of a utility must include forecasts for the term of the resource plan of the utility’s:

     (a) Peak demand in summer and winter for water flows;

     (b) Peak demand in summer and winter for wastewater flows;

     (c) Annual water consumption;

     (d) Annual wastewater flows; and

     (e) Annual losses of water from the system.

     2.  The forecasts must:

     (a) Apply to the entire system of the utility;

     (b) Be based on the most probable set of future conditions that may affect water consumption and wastewater flows, including, without limitation, the customer base of the utility; and

     (c) If applicable, be separated according to rate schedule.

     3.  If the utility’s forecast includes water from a water source that may not be available at a consistent level of use because of specific legal, environmental, water quality or climatic factors, the utility shall describe its plans to supplement or replace that water source, to the extent practicable, with alternative water sources or measures to manage the demand for water.

     4.  In preparing the forecasts, the utility shall:

     (a) Describe the opportunities for the exchange or transfer of water with other utilities during the short-term and the long-term; and

     (b) Consider the effects that new technologies and new laws, regulations and other governmental programs may have on the forecasts.

     5.  To verify and complete the forecast, the utility may evaluate the forecast with the results of alternative forecasting methods.

     6.  Any change in the methodology of forecasting used by the utility from the methodology used in the utility’s previous resource plan must be identified in the current resource plan of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5668  Resource plan: Information concerning entire system of utility for 10 previous years. (NRS 703.025, 704.210, 704.661)

     1.  The resource plan of a utility must include the following information for the entire system of the utility for each of the 10 years immediately preceding the year in which the resource plan is filed with the Commission:

     (a) The recorded and coincident peak demand for water;

     (b) The recorded sales of water and wastewater flows;

     (c) The estimated or actual amount of water lost;

     (d) The estimated or actual amount of water used;

     (e) The estimated or actual amount of effluent disposed of by the utility; and

     (f) The estimated or actual amount of reclaimed water sold or used by the utility.

     2.  To the extent practicable, the information must be organized by class of service.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5669  Resource plan: Assessment of projected reliability of water service; population estimates. (NRS 703.025, 704.210, 704.661)

     1.  The resource plan of a utility, other than a utility that provides only services for the disposal of sewage, must include an assessment of the projected reliability of the utility’s water service to its customers. The assessment must compare the total projected water supply available to the utility with the total projected water use by the utility’s customers during a normal water year, a single dry water year and 3 consecutive dry water years. The assessment must be provided for the 5th, 10th, 15th and 20th years of the resource plan.

     2.  A utility shall, in its resource plan, use estimates of population obtained from a state, regional or local agency within the service area of the utility.

     3.  As used in this section:

     (a) “Dry water year” means a water year that has precipitation that is less than 80 percent of the precipitation in a normal water year.

     (b) “Normal water year” means a water year that has precipitation equal to the average precipitation calculated by an entity in the region where the utility is located.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.567  Conservation plan: General requirements. (NRS 703.025, 704.210, 704.661)

     1.  The conservation plan of a utility must include, without limitation:

     (a) A description of each program of water conservation that the utility has implemented, is implementing or proposes to implement, including, without limitation:

          (1) Water surveys for single-family residential customers and multifamily residential customers;

          (2) Programs to encourage retrofitting of residential plumbing;

          (3) Water audits, leak detection and repair;

          (4) The use of water meters with commodity rates for new connections and the retrofitting of existing connections;

          (5) Incentives and other programs of water conservation for golf courses, parks, school grounds and other large landscapes;

          (6) Rebates or other incentives for the purchase of high-efficiency washing machines;

          (7) Programs of public information;

          (8) Educational programs in schools;

          (9) Conservation programs for commercial, industrial, governmental and other customers;

          (10) The use of conservation pricing;

          (11) Employment of a person to coordinate the utility’s programs of water conservation;

          (12) Prohibitions against wasting water and measures for the enforcement of those prohibitions;

          (13) A program to encourage residential customers to replace existing toilets with ultra-low-flush toilets; and

          (14) Incentives for the reclamation of water and the use of reclaimed water;

     (b) An estimate of the savings in water consumption or the reduction in the demand for water that is attributable to each program;

     (c) An estimate of the effect on the utility’s peak demand for water and water consumption for each program;

     (d) A schedule of implementation for each proposed program;

     (e) A description of the methods, if any, that may be used to evaluate the effectiveness of each program; and

     (f) An estimate of the cost of each program. The estimate must be supported by a statement that sets forth in detail the methods used to determine the estimate, including, without limitation, the data and assumptions used to determine the estimate.

     2.  In developing its conservation plan, a utility must consider the effect that new technologies, including, without limitation, advances in digital and computer information system technologies, may have on current and future conservation programs.

     3.  The conservation plan must:

     (a) Identify each program for which the utility requests the approval of the Commission; and

     (b) Include a report of the status of each program of water conservation that has been approved by the Commission. The report must provide a table for each program that indicates for each year of the program, the planned and actual reduction in water usage and the costs of the program.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5671  Conservation plan: Analysis for potential water shortages. (NRS 703.025, 704.210, 704.661)  The conservation plan of a utility must include an analysis for potential water shortages. The analysis must include, without limitation:

     1.  An outline of the specific water supply conditions that may apply at a 25 percent shortage in the water supply and a 50 percent shortage in the water supply, and a description of the actions that the utility proposes to take in response to a water shortage at each level.

     2.  An estimate of the minimum water supply that will be available to the utility during each of the 3 water years immediately following the year in which the resource plan is submitted. The estimate must be based on the driest 3 consecutive water years that have been recorded for the utility’s water supply.

     3.  A description of the actions that the utility proposes to prepare for and implement during a catastrophic interruption of water supplies, including, without limitation, a regional power outage, an earthquake or any other natural or human-caused disaster.

     4.  An analysis of the effect that each action and condition set forth in subsections 1, 2 and 3 is likely to have on the revenue and expenditures of the utility. The analysis must set forth the actions, including, without limitation, the development of reserves and the use of rate adjustments, that the utility proposes to take to mitigate those effects.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5672  Conservation plan: Information about reclaimed water. (NRS 703.025, 704.210, 704.661)  The conservation plan of a utility must provide, to the extent practicable, information about reclaimed water and its potential for use as a water source in the service area of the utility. The utility must coordinate with local water, wastewater, groundwater and planning agencies that operate within the utility’s service area to acquire the information. The information must include, without limitation:

     1.  A description of the systems of wastewater treatment in the utility’s service area, including, without limitation:

     (a) The quantities of sewage collected and wastewater treated by the utility; and

     (b) The utility’s methods for the disposal of effluent and the reclamation of water.

     2.  A description of the quantity of treated wastewater that:

     (a) Is discharged by the utility;

     (b) Complies with the standards of water quality for reclaimed water established by the State Environmental Commission pursuant to chapter 445A of NRS; and

     (c) Is otherwise available for use in a project of water reclamation.

     3.  A description of the reclaimed water that is used in the utility’s service area, including, without limitation, the location, quantity and type of each use.

     4.  A description of the potential uses for reclaimed water in the utility’s service area, including, without limitation:

     (a) Agricultural irrigation;

     (b) Irrigation of large landscapes, including, without limitation, golf courses, parks and school grounds;

     (c) The enhancement of wildlife habitat;

     (d) The creation, restoration or preservation of wetlands;

     (e) Industrial uses; and

     (f) The recharging of groundwater.

Ê The utility shall, for each potential use of reclaimed water it identifies, estimate the amount of reclaimed water that could be used and make a determination of the technical and economic feasibility of serving that use.

     5.  A plan to maximize the use of reclaimed water in the utility’s service area. The plan must include, without limitation, any action by the utility to:

     (a) Facilitate the installation of systems for the distribution of water that have dedicated lines for the distribution of potable water and reclaimed water;

     (b) Promote the recirculation of water;

     (c) Facilitate the increased use of treated wastewater that complies with the standards of water quality for reclaimed water established by the State Environmental Commission pursuant to chapter 445A of NRS; and

     (d) Identify the impediments to achieving the increased use of treated wastewater and to remove those impediments.

     6.  A projection of the use of reclaimed water within the utility’s service area at the end of the 3rd, 10th, 15th and 20th years of the resource plan.

     7.  If a utility has previously submitted a projection of uses for reclaimed water within its service area, a comparison of the actual uses of reclaimed water with the previous projection of uses for reclaimed water.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5673  Water supply and wastewater treatment plan: Options for meeting demand for water and wastewater treatment. (NRS 703.025, 704.210, 704.661)

     1.  The water supply and wastewater treatment plan of a utility must:

     (a) Identify and analyze the utility’s options for meeting the demand for water and wastewater treatment established in the forecasts prepared by the utility pursuant to NAC 704.5667; and

     (b) Describe, for each option, the utility’s facilities and any new facilities that may be required. The description must set forth the actual or proposed capacity of each facility and the actual or proposed resources available for each year of the water supply and wastewater treatment plan.

     2.  The options must include, without limitation:

     (a) The construction of new facilities;

     (b) Improvements to existing facilities, including, without limitation, the retrofitting of the facilities with more efficient systems or the conversion of the facilities for use with other water sources or forms of wastewater treatment;

     (c) The purchase of water rights;

     (d) Improvements in the efficiency of the utility’s operations, including, without limitation, improvements that are attributable to the proposed implementation of new digital and computer information system technologies; and

     (e) Transactions with other utilities that furnish water or provide services for the disposal of sewage and with other water suppliers for:

          (1) The pooling of water supplies;

          (2) The purchase of water supplies; or

          (3) The exchange of water supplies.

     3.  The analysis must consider for each option measures to reduce the risk of interruption in the water supply, including, without limitation:

     (a) Increasing flexibility in the utility’s sources of water supply;

     (b) Increasing diversity in the utility’s sources of water supply;

     (c) Reducing the utility’s commitments for supplying water;

     (d) Selecting projects relating to water supply that can be completed within 3 years immediately following the year in which the resource plan is submitted to the Commission;

     (e) Reducing the utility’s costs of supplying water; and

     (f) Increasing the reliability of the water supply.

     4.  A utility may not include an option in its water supply and wastewater treatment plan unless the option, if selected by the utility and approved by the Commission, will:

     (a) Provide for a reliable water supply;

     (b) Be within applicable regulatory and financial constraints; and

     (c) Comply with all applicable federal, state or local laws and regulations for the protection of the environment.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5674  Water supply and wastewater treatment plan: Preferred plan. (NRS 703.025, 704.210, 704.661)  The water supply and wastewater treatment plan of a utility must include a preferred plan that sets forth the utility’s selection of its preferred options for meeting the demand for water and requirements for wastewater treatment for the term of the resource plan. The preferred plan must include an explanation of the criteria that the utility used to select its preferred options. The explanation must include sufficient detail to enable the Commission to determine whether the utility’s selection is justified.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5675  Water supply and wastewater treatment plan: Description of system and separate components; map of facilities; description of deficiencies. (NRS 703.025, 704.210, 704.661)  The water supply and wastewater treatment plan of a utility must include, without limitation:

     1.  A description of the utility’s system and the separate components of the system. The description of each component must set forth, if applicable, the location, capacity, type and age of the component and include references to any applicable documentation or other information relating to the description of the component. The components that must be described include, without limitation:

     (a) Sources of water supply, including, if the source is a well, its depth, casing depth, water zone, design capacity and capacity of the well;

     (b) Water rights, including the volume of water established for each water right and its status;

     (c) Water distribution and transmission lines;

     (d) Lines for the collection of wastewater;

     (e) Facilities for water storage;

     (f) Emergency standby facilities, including, without limitation, power supplies for the production, treatment, storage and maintenance of water pressure;

     (g) Pressure-reducing valve stations;

     (h) Booster stations;

     (i) Lift stations;

     (j) Force mains;

     (k) Facilities for wastewater treatment;

     (l) Sites for the disposal of effluent;

     (m) Sites for the reclamation of water;

     (n) The utility’s systems for supervisory control and data acquisition;

     (o) Hydraulic profile;

     (p) Operating and elevation levels;

     (q) Operation and performance of the system; and

     (r) Programs for the protection of the water supply;

     2.  A map that identifies the location, capacity, elevation and any other applicable data for each existing and proposed facility, including, without limitation, a facility described in subsection 1; and

     3.  A description of each existing or projected deficiency in the system of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5676  Funding plan: Requirement for certain items identified in conservation plan or water supply and wastewater treatment plan. (NRS 703.025, 704.210, 704.661)  The resource plan of a utility must include a funding plan for each item identified in the utility’s conservation plan or water supply and wastewater treatment plan for which the utility proposes to initiate expenditures during the term of the action plan. The funding plan must include the means the utility proposes to use to minimize the effect of the expenditures on the:

     1.  Rates charged by the utility to its customers; and

     2.  Financial risk to the utility.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5677  Funding plan: Information concerning costs utility will incur during term of action plan. (NRS 703.025, 704.210, 704.661)  The funding plan of a utility must set forth information concerning the costs that the utility will incur during the term of the action plan, including, without limitation:

     1.  The estimated costs of any construction identified in the action plan, including, without limitation:

     (a) Annual flows of expenditures with allowance for money expended during construction; and

     (b) Annual flows of expenditures without allowance for money expended during construction; and

     2.  The projected rates of escalation in costs, including, without limitation:

     (a) Capital costs; and

     (b) Fixed operating costs.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5678  Funding plan: Options for defraying expenditures. (NRS 703.025, 704.210, 704.661)  The funding plan of a utility must include options for defraying the expenditures identified in the plan. Each option must include a combination of:

     1.  Revenue from customer surcharges;

     2.  Revenue from customer hook-up fees;

     3.  Capital investment by the utility;

     4.  Debt financing by the utility; and

     5.  Other prudent and reasonable means of defraying the expenditures.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5679  Funding plan: Estimates of financial information; assumptions. (NRS 703.025, 704.210, 704.661)

     1.  The funding plan of a utility must include estimates of the following financial information for the term of the action plan:

     (a) The present worth of revenue requirements;

     (b) Revenue requirements by year;

     (c) The total rate base by year; and

     (d) Financial results attributable to the utility’s strategy of risk management.

     2.  The funding plan must include for each year of the action plan, the assumptions used by the utility relating to:

     (a) The general rate of inflation;

     (b) The rates for the cost of capital;

     (c) The discount rates used to determine present worth;

     (d) The applicable tax rates; and

     (e) Any other assumptions used by the utility to develop the funding plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.568  Action plan: General requirements. (NRS 703.025, 704.210, 704.661)  The action plan of a utility must include, without limitation:

     1.  An introductory section that explains how the action plan relates to the long-term plans of the utility as set forth in its resource plan;

     2.  A section that identifies each action for which the utility requests the approval of the Commission;

     3.  A section that identifies each part of the utility’s conservation plan that the utility proposes to carry out during the term of the action plan; and

     4.  A section that identifies each part of the utility’s water supply and wastewater treatment plan that the utility proposes to carry out during the term of the action plan and includes, without limitation:

     (a) For each facility for which construction will be performed during that term:

          (1) The utility’s plans for construction; and

          (2) The utility’s proposed schedule for construction, including, without limitation, the proposed dates for:

               (I) The preparation of any environmental impact statements, if required;

               (II) The application for and receipt of each significant permit;

               (III) Entering into a commitment for each substantial expenditure; and

               (IV) Placing the facility in commercial operation.

     (b) For each facility that will be acquired during that term, the proposed date for placing the facility in commercial operation.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5681  Action plan: Budget of planned expenditures. (NRS 703.025, 704.210, 704.661)  The action plan of a utility must include a budget of its planned expenditures. The budget must be prepared in a format that is:

     1.  Suitable for comparing its planned expenditures with its actual expenditures; and

     2.  Consistent with the format that the utility intends to use in other submissions to the Commission, if any.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5682  Action plan: Action by Commission. (NRS 703.025, 704.210, 704.661)

     1.  The Commission will:

     (a) Issue an order approving the action plan of a utility as filed;

     (b) Issue an order modifying the action plan of a utility; or

     (c) Specify those parts of the action plan that the Commission considers inadequate.

     2.  An action plan shall be deemed to be approved by the Commission only as to that portion of the action plan accepted as filed or modified with the consent of the utility pursuant to subsection 5 of NRS 704.661.

     3.  If the Commission approves the action plan of the utility, the Commission will include in the approval of the action plan its determination that the elements contained in the action plan are prudent. The Commission will make a determination that the elements of the action plan are prudent if:

     (a) The action plan maximizes the utility’s water supply and wastewater treatment capacities for the benefit of the utility’s customers; and

     (b) The utility demonstrates that the action plan balances the objectives of minimizing cost, mitigating risk and maximizing reliability of service for the term of the action plan.

     4.  If the Commission subsequently determines that any information relied upon when issuing its order approving or modifying the action plan was based upon information that was known or should have been known by the utility to be false when the information was presented, the Commission may revoke, rescind or otherwise modify its approval of the action plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008; A by R110-15, 6-28-2016)

      NAC 704.5683  Action plan: Deviation from plan by utility. (NRS 703.025, 704.210, 704.661)

     1.  Notwithstanding the approval by the Commission of the action plan of a utility, the utility may deviate from the approved action plan to the extent necessary to respond to any significant change in circumstances that was not contemplated by the action plan. A significant change in circumstances includes, without limitation:

     (a) A substantial change in the market price of water;

     (b) An extended forced outage of a major facility of the utility;

     (c) A substantial change in customer demand; or

     (d) Any other circumstance that the utility demonstrates to the Commission requires a deviation.

     2.  If a utility deviates from its approved action plan:

     (a) The Commission will determine the prudence of the deviation from the action plan in an appropriate proceeding.

     (b) If the deviation from the action plan is of a continuing nature, the utility shall request authority from the Commission to deviate prospectively from the action plan by filing an amendment to the action plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5684  Action plan: Monitoring; conditions requiring amendment. (NRS 703.025, 704.210, 704.661)

     1.  A utility shall continually monitor its action plan and amend the action plan before it submits its next resource plan to the Commission if:

     (a) The utility intends to submit an application for a permit to construct a utility facility pursuant to NRS 704.820 to 704.890, inclusive, which was not approved as part of the action plan;

     (b) The utility makes a commitment for the acquisition or construction of a facility that was not approved as part of the action plan;

     (c) The utility makes a commitment for a long-term purchased water obligation which was not approved as part of the action plan;

     (d) The utility is unable to place a resource in service or obtain a resource in accordance with the schedule for the resource that is included in the action plan which results in a significant deviation from the action plan;

     (e) The utility makes a commitment for a resource that was not available when the action plan was approved; or

     (f) The basic data used in the development of the resource plan requires substantial modification that affects the choice of a resource which was approved as part of the action plan.

     2.  The conditions under which an amendment to an action plan is requested must be specifically set forth in the application for the amendment.

     3.  As used in this section, “resource” includes, without limitation, a facility, source of water supply or water right.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5685  Amendment to action plan: Provision of overview of proposed amendment to certain entities. (NRS 703.025, 704.210, 704.661)  Before a utility files an amendment to its action plan, the utility must meet with the Bureau of Consumer Protection in the Office of the Attorney General and the Regulatory Operations Staff of the Commission to provide an overview of the proposed amendment to the action plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5686  Amendment to action plan: Required provisions. (NRS 703.025, 704.210, 704.661)  An amendment to an action plan must include, without limitation:

     1.  A section that identifies each action for which the utility requests approval by the Commission;

     2.  A section that specifies any changes in assumptions or data that have occurred since the utility’s last resource plan was filed with the Commission; and

     3.  If applicable, the information required in subsections 3 and 4 of NAC 704.568.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5687  Amendment to action plan: Action by Commission. (NRS 703.025, 704.210, 704.661)

     1.  The Commission will:

     (a) Issue an order approving the amendment to the action plan as filed;

     (b) Issue an order modifying the amendment to the action plan; or

     (c) Specify those parts of the amendment that the Commission considers inadequate.

     2.  An amendment to the action plan shall be deemed to be approved by the Commission only as to that portion of the amendment to the plan accepted as filed or modified with the consent of the utility pursuant to subsection 5 of NRS 704.661.

     3.  If the Commission approves the amendment, the Commission will include in the approval of the amendment its determination that the amendment is prudent. The Commission will make a determination that the amendment is prudent if:

     (a) The amendment maximizes the utility’s water supply and wastewater treatment capacities for the benefit of the utility’s customers; and

     (b) The utility demonstrates that the amendment balances the objectives of minimizing cost, mitigating risk and maximizing the reliability of water supply and wastewater treatment for the term of the action plan.

     4.  If the Commission subsequently determines that any information relied upon when issuing its order approving or modifying the amendment was based upon information that was known or should have been known by the utility to be false when the information was presented, the Commission may revoke, rescind or otherwise modify its approval of the amendment.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008; A by R110-15, 6-28-2016)

      NAC 704.5688  Accrual of expenses to develop resource plan in deferred account; recovery of expenses. (NRS 703.025, 704.210, 704.661)  A utility may, pursuant to NRS 704.661, accrue its expenses to develop a resource plan in a deferred account. The utility may request recovery of those expenses in a subsequent general rate application.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

Maintenance of Fire Hydrants

      NAC 704.569  General requirements; adoption by reference of certain publications. (NRS 703.025, 704.210, 704.660)

     1.  Except as otherwise provided in this section, a public utility that is required to maintain a fire hydrant pursuant to NRS 704.660 shall:

     (a) Maintain the fire hydrant in compliance with:

          (1) The International Fire Code; and

          (2) The Uniform Plumbing Code.

     (b) Inspect and operate the fire hydrant:

          (1) Not less than once each year; and

          (2) Not later than 3 days after receiving notice that the fire hydrant is not in compliance with the International Fire Code or the Uniform Plumbing Code.

     (c) If the utility discovers that the fire hydrant is not in compliance with the International Fire Code or the Uniform Plumbing Code, the utility shall, not later than 24 hours after the discovery:

          (1) Notify the local agency having jurisdiction over fire protection;

          (2) Install and maintain on the fire hydrant an out-of-service ring or bag that is approved by the local agency having jurisdiction over fire protection; and

          (3) Repair the fire hydrant as soon as practicable, but in any case, not later than 30 days after discovery of the noncompliance unless the local agency having jurisdiction over fire protection agrees to a later date for the completion of the repairs and the utility notifies the Commission of the agreement.

     (d) Paint and maintain the fire hydrant in a color scheme that is approved by the local agency having jurisdiction over fire protection.

     (e) Obtain the approval of the local agency having jurisdiction over fire protection and the Commission before removing a fire hydrant from service.

     (f) If the local agency having jurisdiction over fire protection has established a plan for inspecting fire hydrants, coordinate the utility’s inspections with the local agency.

 

     2.  The Commission hereby adopts by reference:

     (a) The International Fire Code, 2006 edition, published by the International Code Council. The publication may be obtained from the International Code Council, 500 New Jersey Avenue, N.W., 6th Floor, Washington, D.C. 20001-2070, by telephone at (800) 422-7233, or at the Internet address http://www.iccsafe.org. The price of the publication is $79 for members and $105 for nonmembers.

     (b) The Uniform Plumbing Code, 2006 edition, published by the International Association of Plumbing and Mechanical Officials. The publication may be obtained from the International Association of Plumbing and Mechanical Officials, 4755 East Philadelphia Street, Ontario, California 91761-2816, by telephone at (800) 854-2766, or at the Internet address http://www.iapmo.org. The price of the publication is $50.

     3.  The Commission will review each revision of the publications adopted by reference pursuant to subsection 2 to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, it will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 2.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008; A by R011-15, 10-27-2015)

Utilities That Service Limited Number of Customers: Rates and Service

      NAC 704.570  Definitions. (NRS 703.025, 704.095, 704.210)  As used in NAC 704.570 to 704.628, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.5705 to 704.5725, inclusive, have the meanings ascribed to them in those sections.

     [Pub. Service Comm’n, Gen. Order 26 § 4, eff. 8-6-80]—(NAC A 10-26-84; 11-5-93; A by Pub. Utilities Comm’n by R079-99, 11-16-99; R047-02, 10-24-2002; R036-10, 12-16-2010)

      NAC 704.5705  “Affiliate” defined. (NRS 703.025, 704.095, 704.210)  “Affiliate” means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with a utility subject to the provisions of NAC 704.570 to 704.628, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.5712  “General rate change” defined. (NRS 703.025, 704.095, 704.210)  “General rate change” means an increase or decrease in rates which is designed to produce gross annual operating revenue to cover a public utility’s cost to provide service to the public, exclusive of costs that are otherwise specifically identified to be recoverable from special rate and accounting mechanisms.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.5713  “Gross domestic product deflator” defined. (NRS 703.025, 704.095, 704.210)  “Gross domestic product deflator” means an economic metric that accounts for the effects of inflation or deflation in the gross domestic product for the current year by converting the value of that gross domestic product to a value relative to the gross domestic product of a designated year. For the purposes of NAC 704.570 to 704.628, inclusive, the gross domestic product deflator is published by the Bureau of Economic Analysis of the United States Department of Commerce and is calculated by the following formula:

 

                                                       Nominal gross domestic product X 100

Gross domestic product deflator =____________________________________   

                                                                Real gross domestic product

 

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.5714  “Gross domestic product deflator advice letter” defined. (NRS 703.025, 704.095, 704.210)  “Gross domestic product deflator advice letter” means a letter that a utility files with the Commission to request an increase or decrease, consistent with the percentage change in the gross domestic product deflator, in the fee for basic service or the charges for a commodity provided by the utility.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.5725  “Regulatory Operations Staff” defined. (NRS 703.025, 704.095, 704.210)  “Regulatory Operations Staff” means the Regulatory Operations Staff of the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93; A by Pub. Utilities Comm’n by R036-10, 12-16-2010)

      NAC 704.575  Applicability. (NRS 703.025, 704.095, 704.210)  Except as otherwise provided in NAC 703.22075, the provisions of NAC 704.570 to 704.628, inclusive, apply to public utilities whose rates are subject to the jurisdiction of the Commission as set forth in NRS 704.095.

     [Pub. Service Comm’n, Gen. Order 26 § 2, eff. 8-6-80]—(NAC A 11-5-93; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R036-10, 12-16-2010)

      NAC 704.581  Annual notification of gross domestic product deflator. (NRS 703.025, 704.095, 704.210)  On or before February 1 of each year, the Regulatory Operations Staff shall notify all public utilities to which the provisions of NAC 704.570 to 704.628, inclusive, apply pursuant to NAC 704.575 of the most recent gross domestic product deflator.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.582  Range of reasonable returns on equity: Annual filing and service; contents; use in application for adjustments in rates. (NRS 703.025, 704.095, 704.210)

     1.  On or before February 15 of each year, the Regulatory Operations Staff shall file with the Commission and serve upon the Consumer’s Advocate and all public utilities that furnish water or services for the disposal of sewage, or both, a range of reasonable returns on equity that may be used by those public utilities when filing an application for adjustments in rates.

     2.  In a range of reasonable returns on equity filed pursuant to subsection 1, the Regulatory Operations Staff shall specify the appropriate return on equity applicable to a public utility that furnishes water or services for the disposal of sewage, or both, based upon:

     (a) The size of the public utility; and

     (b) Whether the public utility is a subsidiary of a holding company.

     3.  A range of reasonable returns on equity filed pursuant to subsection 1 shall be accompanied by all work papers used to establish the range of returns on equity.

     4.  The use in an application for adjustments in rates by a public utility that furnishes water or services for the disposal of sewage, or both, of the most recent applicable range of reasonable returns on equity filed by the Regulatory Operations Staff creates a rebuttable presumption that the return on equity requested by the public utility is just and reasonable.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.583  Calculation of amount of allowance for cash working capital. (NRS 703.025, 704.095, 704.210)

     1.  To calculate the amount of an allowance for cash working capital, a public utility that furnishes water or services for the disposal of sewage, or both, may:

     (a) Conduct a lead-lag study; or

     (b) Use the 1/8 formula method.

     2.  If a public utility that furnishes water elects to use the 1/8 formula method to calculate the amount of an allowance for cash working capital, the utility must use in that calculation exclusively the following accounts of the Uniform System of Accounts of the National Association of Regulatory Utility Commissioners:

     (a) Account 408, Taxes Other Than Income; and

     (b) Accounts 601 through 675, inclusive, Operations and Maintenance, exclusive of:

          (1) Account 670, Bad Debt Expense; and

          (2) Amortization of expenses of a rate case that have been deferred, otherwise included in:

               (I) Account 666, Regulatory Commission Expenses - Amortization of Rate Case Expense (Class A and B Utilities); and

               (II) Account 665, Regulatory Commission Expenses - Amortization of Rate Case Expense (Class C Utilities).

     3.  If a public utility that furnishes services for the disposal of sewage elects to use the 1/8 formula method to calculate the amount of an allowance for cash working capital, the utility must use in that calculation exclusively the following accounts of the Uniform System of Accounts of the National Association of Regulatory Utility Commissioners:

     (a) Account 408, Taxes Other Than Income; and

     (b) Accounts 701 through 775, inclusive, Operations and Maintenance, exclusive of:

          (1) Account 770, Bad Debt Expense; and

          (2) Amortization of expenses of a rate case that have been deferred, otherwise included in:

               (I) Account 766, Regulatory Commission Expenses - Amortization of Rate Case Expense (Class A and B Utilities); and

               (II) Account 765, Regulatory Commission Expenses - Amortization of Rate Case Expense (Class C Utilities).

     4.  For the purposes of this section:

     (a) “1/8 formula method” means the computation of the amount of cash working capital which equals the sum of the total annual operating expenses and total annual maintenance expenses of a utility divided by 8.

     (b) “Cash working capital” means the amount of money that the shareholders or investors of the utility have provided to enable the utility to pay current operating expenses of the utility between the time when the expenses of rendering utility service are paid and the time when revenues for that service are collected from the customers of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.584  Gross domestic product deflator advice letter: Filing and contents; memorandum of recommendations. (NRS 703.025, 704.095, 704.210)

     1.  Except as otherwise provided in this subsection, on or before April 1 of each year, a utility may file a gross domestic product deflator advice letter. A utility may not file a gross domestic product deflator advice letter pursuant to this subsection if, within the preceding calendar year, the utility filed:

     (a) An application for a general rate change pursuant to NAC 704.586; or

     (b) An application to recover increased costs of fuel or power pursuant to NAC 704.595.

     2.  A gross domestic product deflator advice letter must include:

     (a) A schedule of the proposed fee for basic service and charges for a commodity;

     (b) A comparison of the existing fee for service and charges for a commodity and the proposed fee for service and charges for a commodity;

     (c) The dollar amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes;

     (d) The percentage amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes;

     (e) The dollar amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes for each class or category of service or commodity;

     (f) The percentage amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes for each class or category of service or commodity;

     (g) The number of customers at the time the gross domestic product deflator advice letter is filed to whom the proposed changes are expected to apply; and

     (h) A copy of the workpapers that reflect the calculation of the proposed changes.

     3.  The utility must file copies of the gross domestic product deflator advice letter with the Regulatory Operations Staff and the Consumer’s Advocate. The gross domestic product deflator advice letter filed with the Commission must be accompanied by proofs of service that copies of the gross domestic product deflator advice letter were filed pursuant to this subsection.

     4.  The Regulatory Operations Staff shall file with the Commission and serve on the parties a memorandum setting forth the recommendations of the Regulatory Operations Staff with respect to approval by the Commission of the proposed changes in the fee for service and charges for a commodity and such other action by the Commission as the Regulatory Operations Staff deems reasonable under the circumstances. The Regulatory Operations Staff shall file the memorandum required pursuant to this subsection within the later of:

     (a) Thirty days after the utility filed the gross domestic product deflator advice letter with the Commission; or

     (b) If the Commission has conducted a consumer session pursuant to NRS 704.069 relating to the proposed changes, 5 business days after the consumer session.

     5.  Not later than 10 business days after receipt of service of a memorandum served by the Regulatory Operations Staff pursuant to subsection 4, any party may file a response to the memorandum.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.586  Application for general rate change: Filing, contents and service. (NRS 703.025, 704.095, 704.210)

     1.  To request a general rate change, a utility must file an application with the Commission.

     2.  An application for a general rate change must include:

     (a) The following forms, which are available from the Regulatory Operations Staff upon request:

          (1) Form A, Company Information (pages 1-2);

          (2) Form B, Tariff Rate Schedule;

          (3) Form C, Income Statement;

          (4) Form D, Rate Base;

          (5) Form E, Cost of Capital; and

          (6) Form F, Statement of Services;

     (b) A complete and accurate explanation of the circumstances and conditions upon which the utility relied as justification for the application;

     (c) The certification required pursuant to subsection 3 of NRS 704.110 or an explanation of the adjustments to recorded data which show the effects, on an annualized basis, of known and expected changes in circumstances;

     (d) A comparison of the existing fee for service and charges for a commodity and the proposed fee for service and charges for a commodity;

     (e) The dollar amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes;

     (f) The percentage amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes;

     (g) The dollar amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes for each class or category of service or commodity;

     (h) The percentage amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes for each class or category of service or commodity; and

     (i) The number of customers at the time the application is filed to whom the proposed changes are expected to apply.

     3.  The utility must serve copies of the application for a general rate change upon the Regulatory Operations Staff and the Consumer’s Advocate. The application for a general rate change filed with the Commission must be accompanied by proofs of service that copies of the application for a general rate change were served pursuant to this subsection.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.587  Gross domestic product deflator advice letter or application for general rate change: Notice to customers; affidavit to Commission. (NRS 703.025, 704.095, 704.210)  If a utility files a gross domestic product deflator advice letter pursuant to NAC 704.584 or an application pursuant to NAC 704.586:

     1.  The utility shall make available at its place of business a complete copy of the gross domestic product deflator advice letter or application that is readily accessible and can be conveniently inspected by its customers.

     2.  The utility shall, within 10 days after the date on which the gross domestic product deflator advice letter or application is filed, post a notice at its place of business which states that the gross domestic product deflator advice letter or application, as applicable, has been filed with the Commission and that a copy of the gross domestic product deflator advice letter or application, as applicable, is available for inspection by customers on the premises of the utility.

     3.  The utility shall, within 30 days after the date on which the gross domestic product deflator advice letter or application is filed, notify its customers of its intention to seek a change in its rates.

     4.  The utility shall, within 45 days after the date on which the gross domestic product deflator advice letter or application is filed, submit an affidavit to the Commission which demonstrates that the utility has complied with the requirements set forth in subsections 1, 2 and 3.

     5.  The utility shall, either by inclusion in the regular bill of charges or in a separate mailing, notify its customers of the hearing to be held to receive comments from customers and of any evidentiary hearing to be held. The utility shall provide the notice of the hearing in such a manner as to ensure that the customers are notified of the hearing not less than 10 days before the date of the hearing. The notice must specify:

     (a) The date, time and location of the consumer hearing and evidentiary hearing, if any;

     (b) The percentage of change in revenues requested in the gross domestic product deflator advice letter or application; and

     (c) The current and proposed rates.

     (Added to NAC by Pub. Utilities Comm’n by R079-99, eff. 11-16-99; A by R036-10, 12-16-2010)

      NAC 704.595  Application to recover increased costs of fuel or power: Filing and contents. (NRS 703.025, 704.095, 704.210)

     1.  A utility may submit an application requesting increases in its scheduled rates to offset increased costs of fuel or power used for pumping in its water or sewer operations, or both, except that a utility may not file such an application more often than once every 30 days.

     2.  If such an application is for increases for both water and sewer operations, the information concerning those operations must be separately stated. Such an application must include:

     (a) Form A, Company Information.

     (b) Form B, Tariff Rate Schedule.

     (c) Worksheets showing calculations and other information on the increased costs, incurred in the latest 12-month period, of fuel or power purchased for pumping for its water or sewer operations.

     (d) Legible copies of the fuel or power bills for each well or pumping station, showing the amounts of fuel or the kilowatt-hours used and the amounts paid. These bills must cover the latest 12-month period and support the data furnished in the worksheets required by paragraph (c).

     (e) A statement for the water or sewer operation, or both, showing the increase in revenue which is needed to offset the increased cost of fuel or power purchased for pumping.

     (f) Form G, Customer Notice.

Ê The requested increases in rates must reflect only the increased costs of fuel or power purchased for pumping which will be incurred by the utility. The forms required by this section are available from the Regulatory Operations Staff.

     [Pub. Service Comm’n, Gen. Order 26 § 10, eff. 8-6-80]—(NAC A by Pub. Utilities Comm’n by R079-99, 11-16-99)

      NAC 704.600  Financing for additions or improvements to plant or providing cash reserve for certain repairs, maintenance or replacements: Surcharge. (NRS 703.025, 704.095, 704.210, 704.663)

     1.  When requested by a utility, the Commission will consider a rate surcharge to:

     (a) Finance large additions or improvements to a plant; or

     (b) Provide a cash reserve for the purposes of:

          (1) Funding significant, unanticipated repairs to, or maintenance of, a water supply or wastewater treatment system; or

          (2) Funding significant but nonspecific capital improvements or replacements of capital assets.

     2.  In determining whether a surcharge should be authorized, the Commission will consider:

     (a) The need for the additions, improvements, cash reserves, repairs, maintenance or replacements;

     (b) The size, in terms of capital requirements, of the additions, improvements, cash reserves, repairs, maintenance or replacements; and

     (c) The availability of other methods of financing.

     3.  The Commission may make such amendments, restrictions or modifications in approving the surcharge as the public interest may require. For the purposes of rate making, all additions, improvements, cash reserves, repairs, maintenance or replacements that are funded by a surcharge will be considered to be a contribution in aid of construction. A rate surcharge will not be authorized unless the utility acknowledges in a written statement to the Commission that the value of the additions, improvements, cash reserves, repairs, maintenance or replacements will not be considered in determining the fair market value of the utility’s entire facility.

     4.  Any money collected by a utility pursuant to a rate surcharge authorized by the Commission must be deposited in an account separate from the utility’s other money. The money must be deposited in an interest-bearing account that is federally insured or in any other type of account approved by the Commission. A copy of all statements identifying all deposits and withdrawals must be provided to the Regulatory Operations Staff upon receipt of the statements by the utility.

     5.  All withdrawals from the account must be authorized by the Commission.

     6.  Not later than March 31 of each year, the Regulatory Operations Staff of the Commission shall present at a meeting of the Commission a report that provides, for each utility authorized by the Commission to collect a rate surcharge pursuant to this section, an accounting for the immediately preceding calendar year of the deposits and withdrawals from the separate account in which the rate surcharge is deposited.

     [Pub. Service Comm’n, Gen. Order 26 § 8, eff. 8-6-80]—(NAC A 10-26-84; A by Pub. Utilities Comm’n by R079-99, 11-16-99; R047-02, 10-24-2002; R178-12, 2-26-2014)

      NAC 704.605  Financing for additions or improvements to plant or providing cash reserve for certain repairs, maintenance or improvements: Written plan. (NRS 703.025, 704.095, 704.210, 704.663)

     1.  An applicant for a rate surcharge must submit a written plan for the replacement or expansion of the plant and its financing, or for the provision of cash reserves, whichever is applicable, to the Commission for its consideration. The plan must be in sufficient detail to enable the Commission to determine the need for the proposed additions or improvements or for the cash reserves, whichever is applicable.

     2.  A written plan submitted by an applicant for a rate surcharge to finance large additions or improvements to a plant pursuant to paragraph (a) of subsection 1 of NAC 704.600 must include, but is not limited to, the following information and documents:

     (a) A brief description of the proposed additions or improvements, together with the estimated cost and the source of that estimate, and an estimate of the time needed for construction and the estimated date of commencement and date of completion of the construction;

     (b) A list of the proposed projects in order of priority, which contains the reasons for the priorities;

     (c) The need for the proposed additions or improvements;

     (d) The size, in terms of capital requirements, of the additions or improvements;

     (e) Any letter of credit, loan commitment or other evidence that funding is or is not available to the applicant; and

     (f) The availability of other methods of financing.

     3.  A written plan submitted by an applicant for a rate surcharge to provide a cash reserve for the purposes set forth in paragraph (b) of subsection 1 of NAC 704.600 must include, but is not limited to, the following information and documentation:

     (a) Documentation that the applicant does not exceed the customer and gross sales limitations set forth in NRS 704.095;

     (b) Documentation that the applicant does not have access to other sources of funding at reasonable terms and conditions, other than the cash reserve;

     (c) The appropriate amount in the cash reserve account;

     (d) The calculation of the rate surcharge necessary to provide the appropriate amount in the cash reserve account; and

     (e) The manner in which money will be refunded to ratepayers if the cash reserve account exceeds the appropriate amount.

     [Pub. Service Comm’n, Gen. Order 26 § 9, eff. 8-6-80]—(NAC A by Pub. Utilities Comm’n by R079-99, 11-16-99; R178-12, 2-26-2014)

      NAC 704.615  Application for general rate change: Action by Commission’s Division of Consumer Complaint Resolution and Regulatory Operations Staff. (NRS 703.025, 704.095, 704.210)

     1.  Not later than 30 days after a utility files with the Commission an application for a general rate change pursuant to NAC 704.586, the Commission’s Division of Consumer Complaint Resolution will prepare and file with the Commission a report on all service complaints received by the Division subsequent to the utility’s last request for a general rate change.

     2.  Upon receipt of an application filed pursuant to NAC 704.586, the Regulatory Operations Staff shall conduct an examination of the books and records of the utility and a field inspection of the facilities of the utility. The Regulatory Operations Staff may request a utility to submit information in addition to that specifically required by NAC 704.586. Not later than 90 days after the Regulatory Operations Staff receives the application and based upon the examination and inspection conducted pursuant to this subsection, the Regulatory Operations Staff shall prepare and serve upon the utility and the interveners, if any:

     (a) A summary of the results of operations as submitted to the Commission, revised based on the Regulatory Operations Staff’s findings relating to the appropriate capital structure, reasonable expenses, rate base and revenues; and

     (b) A recommended schedule of a fee for service and charges for a commodity.

     3.  The utility and the interveners, if any, may file with the Commission a response to the Regulatory Operations Staff’s summary and recommended schedule not later than 10 business days after receiving the summary and recommended schedule.

     4.  After the Regulatory Operations Staff completes its examination and inspection, the Regulatory Operations Staff will schedule an informal settlement conference with the utility and the interveners, if any, to review the results of the examination and investigation by the Regulatory Operations Staff and the report from the Division of Consumer Complaint Resolution, and to attempt to resolve any differences among the parties.

     [Pub. Service Comm’n, Gen. Order 26 § 5 subsec. (b), eff. 8-6-80]—(NAC A 10-26-84; A by Pub. Utilities Comm’n by R079-99, 11-16-99; R036-10, 12-16-2010)

      NAC 704.622  Application for general rate change or request submitted concurrently with assistance of Regulatory Operations Staff. (NRS 703.025, 704.095, 704.210)

     1.  Except as otherwise provided in subsection 7, a utility may request the assistance of the Regulatory Operations Staff in preparing an application for a general rate change or in preparing a request submitted concurrently with an application pursuant to NAC 704.63385 by submitting a written request for assistance to the Assistant Secretary of the Commission.

     2.  Not later than 10 days after the Regulatory Operations Staff receives a utility’s written request for assistance, the Regulatory Operations Staff shall notify the utility, in writing, of the information the Regulatory Operations Staff requires to make a determination of recommended rates and charges.

     3.  The Regulatory Operations Staff shall offer to meet with the utility not later than 30 days after the Regulatory Operations Staff receives the written request for assistance. At that meeting, the utility must:

     (a) Make arrangements for the Regulatory Operations Staff to examine the books and records of the utility and to inspect the condition of the utility’s facilities; and

     (b) Except as otherwise provided in this paragraph, provide all the required information identified in the Regulatory Operations Staff’s written notice issued pursuant to subsection 2. If the utility does not provide all the required information at the meeting, the utility may provide the required information not later than 15 days after the meeting. If the utility fails to provide the required information, the Regulatory Operations Staff shall notify the utility in writing that no further action will be taken on the request until the information is provided.

     4.  Following receipt of the required information identified in the Regulatory Operations Staff’s written notice issued pursuant to subsection 2 to the utility, the Regulatory Operations Staff shall examine the books and records of the utility and inspect the condition of the utility’s facilities.

     5.  Not later than 90 days after the Regulatory Operations Staff receives the required information identified in the written notice issued to the utility, the Regulatory Operations Staff shall:

     (a) Complete the examination and inspection described in subsection 4; and

     (b) If, based on the examination and inspection, the Regulatory Operations Staff determines that the rates and charges of the utility need to be changed, prepare, on behalf of the utility, a draft of an application for a general rate change.

     6.  If the utility elects to proceed with an application for a general rate change, the utility shall file the application, as prepared by the Regulatory Operations Staff or with modifications, with the Commission not later than 45 days after receipt of the draft of the application. If the utility files an application that contains modifications to the draft of the application as prepared by the Regulatory Operations Staff, the utility must include with its application an explanation of those modifications, the basis for the modifications, workpapers detailing any modifications to calculations and any other accounting or financial data necessary to explain and justify the modifications.

     7.  If the utility elects not to proceed with the application, the utility may not make another request for the assistance of the Regulatory Operations Staff for at least 1 year after the date of the previous request for assistance.

     8.  Except as otherwise provided in this subsection, the Commission will issue an order on the application not later than 120 days after receipt of the application. The Commission may, as necessary, extend the time in which the Commission issues an order on the application for a period of not more than 90 days.

     (Added to NAC by Pub. Utilities Comm’n by R079-99, eff. 11-16-99; A by R010-05, 9-7-2005; R036-10, 12-16-2010; R078-14, 12-22-2014)

      NAC 704.625  Disclosure of transactions. (NRS 703.025, 704.095, 704.210)

     1.  Each utility shall disclose in a separate statement as a part of its application all transactions in which it engaged during the preceding year or since its most recent filing with the Commission, whichever period is shorter, with any affiliate or other person who is an owner or stockholder of the utility company.

     2.  The statement must include the nature of the transactions, the amounts of money involved, and how those amounts were determined.

     [Pub. Service Comm’n, Gen. Order 26 § 11, eff. 8-6-80]—(NAC A by Pub. Utilities Comm’n by R036-10, 12-16-2010)

      NAC 704.6265  Placement of utility in receivership. (NRS 703.025, 704.210)

     1.  Any interested person may file a petition with the Commission to request that the Commission consider taking action to have a utility whose rates are subject to the jurisdiction of the Commission as set forth in NRS 704.095 placed in receivership. A petition filed with the Commission pursuant to this subsection must be served on the utility, the Regulatory Operations Staff, the Consumer’s Advocate and the Bureau of Health Protection Services of the Division of Public and Behavioral Health of the Department of Health and Human Services and must be accompanied by proof of service. The Commission may, on its own motion, initiate an investigation into whether such a utility should be placed in receivership.

     2.  The Commission will issue a public notice of a petition filed pursuant to subsection 1. The utility that is the subject of the notice of petition may file an answer to the petition within the time set forth in the notice.

     3.  On its own motion, upon the request of the utility or upon the request of any interested person who has filed comments pursuant to a notice of petition, the Commission will hold a hearing to determine whether the Commission should take action to have the utility placed in receivership.

     4.  In considering whether to take action to have the utility placed in receivership, the Commission may consider:

     (a) Whether the utility has complied with a written plan for the replacement or expansion of the plant of the utility that has been approved by the Commission;

     (b) Whether the utility is providing reasonably adequate service;

     (c) Whether the operation of the utility is affecting the public health in a detrimental manner;

     (d) Whether the utility can meet its financial obligations; or

     (e) Any other factor that may become apparent from a petition, answers filed thereto, or evidence gathered at the hearing.

     (Added to NAC by Pub. Utilities Comm’n by R079-99, eff. 11-16-99; A by R036-10, 12-16-2010)

      NAC 704.627  Inspection; survey of customers; report of findings and recommendations; utility’s response. (NRS 703.025, 704.210)

     1.  The Regulatory Operations Staff will conduct a periodic inspection of the facilities, books and records of each public utility subject to the provisions of NAC 704.570 to 704.628, inclusive. The frequency of the inspections will be based on the growth in customer base, customer satisfaction or any other change in the utility that would provide a reason for an inspection, or on the request of the Commission.

     2.  The Regulatory Operations Staff will notify the utility and the Bureau of Consumer Protection that an inspection will be made in accordance with this section. Within 30 days after the utility receives notice of the inspection, the utility shall provide the Commission with adhesive mailing labels individually addressed to each customer. The Regulatory Operations Staff, through the Division of Consumer Complaint Resolution, will mail a survey to each customer of the utility which is scheduled for inspection.

     3.  After completing the inspection, the Regulatory Operations Staff will submit a written report of its findings and recommendations to the Commission, the utility and the Bureau of Consumer Protection. If the conclusion of the report is that the utility is not in compliance with the standards of service set forth in NAC 704.628, the utility shall submit to the Commission, within 30 days after its receipt of the report, its written response to the findings and recommendations of the Regulatory Operations Staff. The utility may contest the findings and recommendations and request a hearing before the Commission. If no hearing is requested, the utility’s response must indicate how the utility intends to comply with the recommendations set forth in the report of the Regulatory Operations Staff. If expenditures for construction are required for compliance, the utility shall include a timetable for the construction, an estimate of its cost, and an estimate of the effect, if any, of the expenditure on the utility’s rates. Upon its receipt of the utility’s response, the Regulatory Operations Staff will place the matter before the Commission. Whether or not a hearing is requested, the Commission may schedule a session to receive comments from the utility’s customers on the quality of its service. The Commission will consider the survey of customers, the Regulatory Operations Staff’s report, the utility’s response and the record of any hearing held before it approves or disapproves the findings and recommendations of the Regulatory Operations Staff or makes any findings and recommendations of its own.

     (Added to NAC by Pub. Service Comm’n, eff. 10-26-84; A by Pub. Utilities Comm’n by R079-99, 11-16-99; R047-02, 10-24-2002; R036-10, 12-16-2010)

      NAC 704.628  Standards of service. (NRS 703.025, 704.210, 704.660)  Each public utility subject to the provisions of NAC 704.570 to 704.628, inclusive, shall comply with the following standards of service:

     1.  For water resources, water rights must be sufficient to supply adequate amounts of water to satisfy existing commitments.

     2.  For water production, the utility must be capable of producing, from surface water or groundwater sources or by obtaining water from another utility, sufficient quantities of water to meet the historic maximum daily demand of the system.

     3.  For water distribution, the distribution system of the utility must meet each of the following requirements:

     (a) Service connections from the utility must not exceed the hydraulic capabilities of the system.

     (b) The network of pipes of the system must be capable of delivering maximum day demand concurrently with required fire flows. Maximum day demand must be determined from historical records or, in the absence of historical data, calculated by using a factor of three times the average day demand. Requirements for fire flow and duration of the fire flow must be established by the county or local agency having jurisdiction over fire protection. In the absence of a local agency exercising jurisdiction over fire protection, the requirements for fire flow must be established using the International Fire Code, as adopted by reference in NAC 704.569.

     (c) The distribution system, in conjunction with production, storage and pressure control facilities, must be capable of maintaining, during periods of maximum day demand, a minimum residual pressure of 40 pounds per square inch throughout the distribution system. Static pressure must not exceed 100 pounds per square inch at the lowest elevation in any pressure zone. During periods of fire flow, the residual pressure at any point in the distribution system must not fall below 20 pounds per square inch.

     (d) To deliver the quantity of water necessary to comply with the requirements of public fire protection, the utility shall provide and maintain an adequate quantity of hydrants at the prescribed spacing as established by the county or local agency having jurisdiction over fire protection. In the absence of any local agency having jurisdiction over fire protection, the spacing of fire hydrants must be determined by using the International Fire Code, as adopted by reference in NAC 704.569.

     (e) The utility shall not allow the amount of water lost from its distribution system because of leakage to exceed 10 percent of the amount of water required for the system.

     (f) All water sources must have a master meter.

     4.  For storage, the utility must provide water under both of the following circumstances:

     (a) The utility must have the ability to sustain a mechanical failure. If the single most critical pump is out of service, the pumping facilities and above-ground storage of the utility must be able to maintain the average daily flow rate plus the maximum required fire flow rate for the required duration.

     (b) The utility must have the ability to sustain a power outage. To provide system reliability during a power outage, the utility shall comply with at least one of the following:

          (1) In a power outage, pumping facilities with an alternative power source in conjunction with above-ground storage must be capable of delivering the required fire flow demand for the required duration plus maximum day demand for 1 day.

          (2) Above-ground storage must be capable of providing the required fire flow for the required duration plus the average day demand for 1 day.

Ê As used in this paragraph, “above-ground storage” means the amount of water that is stored above an elevation which will maintain a hydraulic gradient above 20 pounds per square inch at any point within the distribution system during maximum demand.

     5.  For water quality, the quality must meet all existing state and federal standards for purity.

     6.  For administration and management, adequately trained personnel must be available to operate the utility under all reasonable circumstances. Books and records maintained by the utility must comply with the systems of accounts established for class A, B and C water and wastewater utilities, as adopted by reference pursuant to NAC 704.561. Each utility shall develop and carry out a written operation and maintenance program, a cross-connection control program and an emergency plan containing procedures unique to each system. Each utility shall have on file, at an office maintained in the State of Nevada, updated drawings, maps or other permanent records to aid in the operation of the water system. The utility shall make and maintain a record of any repairs made to a distribution pipe that sets forth the location of the leak, the date the leak was repaired, an assessment of the cause of the leak and a description of the manner used to repair the pipe.

     (Added to NAC by Pub. Service Comm’n, eff. 10-26-84; A by Pub. Utilities Comm’n by R079-99, 11-16-99; R047-02, 10-24-2002; R043-08, 9-18-2008; R036-10, 12-16-2010)

Utilities That Service Limited Number of Customers: Real Property and Goods

      NAC 704.6321  “Essential real property and goods” defined. (NRS 703.025, 704.210, 704.668)  As used in NAC 704.6321 to 704.6327, inclusive, “essential real property and goods” means the real property, water rights, fixtures, facilities, and plant that are used or required for the provision of water or sewer services and are required to be recorded under account

numbers 303 to 339, inclusive, of the 1984 Uniform System of Accounts for class C water utilities. The term does not include tangible personal property such as vehicles, office equipment, computers, or calculators.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93)—(Substituted in revision for NAC 704.996)

      NAC 704.6323  Applicability. (NRS 703.025, 704.210, 704.668)  The provisions of NAC 704.6321 to 704.6327, inclusive, apply to public utilities that are required to comply with the provisions of NRS 704.668. To determine whether a public utility is required to comply with the provisions of NRS 704.668, a public utility that serves 3,000 or fewer persons shall be deemed to include a public utility that serves 3,000 or fewer service connections.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)—(Substituted in revision for NAC 704.995)

      NAC 704.6325  Requirements concerning essential real property and goods. (NRS 703.025, 704.210, 704.668)  A utility shall own, lease or have access to sufficient essential real property and goods to comply with the requirements of NAC 704.628. The utility shall protect and maintain the essential real property and goods in a manner to ensure continued performance.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93; A by Pub. Utilities Comm’n by R079-99, 11-16-99)—(Substituted in revision for NAC 704.997)

      NAC 704.6327  Application for sale, transfer or other disposal of essential real property and goods and for sale or transfer of water rights; notice of application and hearing. (NRS 703.025, 704.210, 704.668)

     1.  A utility shall submit an application to the Commission requesting approval for:

     (a) The sale, transfer, or other disposal of essential real property and goods, other than water rights, that have a replacement value of more than $5,000 which are not being replaced immediately by the utility; and

     (b) Any sale or transfer of water rights, other than a transfer which does not remove water rights from the control of the utility for use within the utility’s certificated service area.

     2.  An application must include:

     (a) A description of the essential real property and goods proposed to be sold or transferred which includes the cost of acquisition of the essential real property and goods, the accumulated net depreciation, if any, and the net book value of the essential real property and goods;

     (b) The consideration which the utility expects for the essential real property and goods;

     (c) A copy of a lease, sales agreement, or other document concerning the sale or transfer of the essential real property and goods;

     (d) An analysis of the present and future effect which the utility believes the disposal of the essential real property and goods will have on the ability of the utility to continue to provide reasonably continuous and adequate service;

     (e) A description of any real property or goods that the utility has or will acquire to replace the essential real property and goods;

     (f) A summary of the accounting and regulatory treatment for the proposed transaction; and

     (g) If a request to transfer, dispose, or encumber water rights is made, a budget for the water rights required for the expansion or modification of the utility’s certificated service area, in accordance with existing zoning ordinances, before and after the proposed action.

     3.  The Commission will publish notice of the application if service will be impaired or a gain or loss of more than $25,000 is expected. If a hearing is scheduled, the Commission will publish notice in a local newspaper and the utility shall mail written notice of the hearing to each of its customers.

     4.  A gain on the sale or disposition of the assets of a utility must accrue to the benefit of the customers.

     5.  The sale or transfer of a utility or a portion of the utility’s operations must be conducted in accordance with NRS 704.390 and 704.410.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93)—(Substituted in revision for NAC 704.998)

Recovery of Certain Costs by Certain Utilities

      NAC 704.633  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.633 to 704.63455, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.6331 to 704.6338, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6331  “Carrying costs” defined. (NRS 703.025, 704.210)  “Carrying costs” means the return on an eligible project or, if applicable, the return on any plant that may be retired as part of the construction of the eligible project, adjusted for accumulated depreciation and accumulated deferred income taxes, utilizing the utility’s authorized pretax rate of return.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63315  “Cost of service” defined. (NRS 703.025, 704.210)  “Cost of service” means the average embedded cost of providing water service to a customer class.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6332  “Customer class” defined. (NRS 703.025, 704.210)  “Customer class” means a category of customers identified in the rate schedule of a utility.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63325  “Depreciation expense” defined. (NRS 703.025, 704.210)  “Depreciation expense” means the return of an eligible project or, if applicable, the return of any plant that may be retired as part of the construction of the eligible project, utilizing the utility’s authorized rate of depreciation.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6333  “Distribution system” defined. (NRS 703.025, 704.210)  “Distribution system” means distribution mains, valves, hydrants, service lines, meters, meter installations and any other appurtenances which are necessary to transport treated water from the point at which the water exits a water production facility to the point at which the water is delivered to a customer.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63335  “Eligible project” defined. (NRS 703.025, 704.210)  “Eligible project” means an improvement to a distribution system, production system, transmission system or wastewater system that the Commission designates as being eligible for the recovery of costs through a system improvement rate pursuant to subsection 5 of NAC 704.6339.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6334  “Eligible project regulatory asset account” and “regulatory asset account” defined. (NRS 703.025, 704.210)  “Eligible project regulatory asset account” or “regulatory asset account” means an account in which a utility records an amount equal to the monthly system improvement rate revenue requirement for one or more new eligible projects, less the revenue the utility receives from an established system improvement rate.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63345  “Large utility” defined. (NRS 703.025, 704.210)  “Large utility” means a utility that had an annual gross operating revenue of $1,000,000 or more for at least 1 year during the immediately preceding 3 years.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6335  “Production system” defined. (NRS 703.025, 704.210)  “Production system” means wells, water treatment facilities, chemical feed systems, associated piping and any other appurtenances which are necessary for production.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63355  “Resource plan” defined. (NRS 703.025, 704.210)  “Resource plan” has the meaning ascribed to it in NAC 704.5654.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6336  “System improvement rate” defined. (NRS 703.025, 704.210)  “System improvement rate” means a rate established by the Commission pursuant to NAC 704.6343.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63365  “System improvement rate revenue requirement” defined. (NRS 703.025, 704.210)  “System improvement rate revenue requirement” means an amount equal to depreciation expense plus carrying costs, less the depreciation expense and carrying costs associated with any plant retired as part of the construction of an eligible project.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6337  “Transmission system” defined. (NRS 703.025, 704.210)  “Transmission system” means transmission mains, storage facilities, booster stations, valves and any other appurtenances which are necessary for transmission.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63375  “Utility” defined. (NRS 703.025, 704.210)  “Utility” means a public utility which furnishes, for compensation, any water for municipal, industrial or domestic purposes, or services for the disposal of sewage, or both.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6338  “Wastewater system” defined. (NRS 703.025, 704.210)  “Wastewater system” means wastewater mains, lift stations, facilities for wastewater treatment and any other appurtenances which are necessary for the collection of wastewater, treatment of wastewater, reclamation of wastewater and disposal of effluent.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63385  Request for recovery of certain amounts and costs; requirements; concurrent submission with request for assistance of Regulatory Operations Staff; approval; alternative rate design. (NRS 703.025, 704.110, 704.210, 704.663)

     1.  A utility may include in an application to make changes in any schedule submitted pursuant to NRS 704.110 a request to recover:

     (a) An amount based on the anticipated effects of implementing a plan of water conservation, including, without limitation, the anticipated effects of decreased consumption of water by customers of the utility as the result of the implementation of a plan for water conservation or the charging of rates to encourage water conservation; or

     (b) The costs of providing service without respect to the difference in the quantity of water actually sold by the utility by taking into account the adjusted and annualized quantity of water sold during a test year and the growth in the number of customers of the utility.

     2.  A request submitted pursuant to paragraph (a) of subsection 1 must include:

     (a) The amount of the requested adjustment identified by customer class, meter size and, if applicable, rate tier;

     (b) The requested rates and revenue requirement with and without the requested adjustment;

     (c) The 3 most recent years of monthly consumption data by customer or, if not reasonably available, 3 years of historical monthly consumption data by customer class;

     (d) A list of specific water conservation measures and their anticipated effects on water consumption by customer class;

     (e) An estimate of nondiscretionary water consumption by customer class;

     (f) Any corresponding adjustments to the costs of fuel or power used to pump water and the costs of chemicals used to treat water; and

     (g) If the request includes a rate design for the purpose of encouraging water conservation:

          (1) The anticipated effect of the rate design on discretionary water consumption by each affected customer class; and

          (2) Each basis for any estimate of price elasticity.

     3.  A request submitted pursuant to paragraph (b) of subsection 1 must include:

     (a) A description of the manner in which the utility proposes to decouple the revenues of the utility from the quantity of water sold by the utility, including, without limitation, a description of:

          (1) The proposed decoupling methodology;

          (2) The manner in which the utility proposes to calculate the authorized revenues that will be used in the proposed decoupling methodology described in subparagraph (1); and

          (3) The process by which the utility proposes to report to the Commission the annual reconciliation of the actual revenue of the utility versus the authorized revenue of the utility and to implement the resulting change in rates;

     (b) An illustration of the effect on each customer class of the proposal to decouple revenue;

     (c) A description of any necessary and corresponding adjustments to the costs of fuel or power used to pump water and the costs of chemicals used to treat water; and

     (d) A plan for the education of customers of the utility with respect to the proposal to decouple the revenue of the utility from the quantity of water sold by the utility.

     4.  A utility may submit a request pursuant to subsection 1 concurrently with a request for the assistance of the Regulatory Operations Staff of the Commission submitted pursuant to NAC 704.622. If the Commission receives such a concurrent request, the Regulatory Operations Staff shall:

     (a) For a request submitted pursuant to paragraph (a) of subsection 1:

          (1) Assist the utility in analyzing the implementation of any water conservation measures and rate designs to encourage water conservation and the necessity of the requested adjustment.

          (2) Include in the draft application prepared pursuant to paragraph (b) of subsection 5 of NAC 704.622 the information submitted pursuant to subsection 2.

     (b) For a request submitted pursuant to paragraph (b) of subsection 1:

          (1) Assist the utility in identifying any appropriate decoupling methodologies applicable to the utility.

          (2) If the Regulatory Operations Staff identifies an appropriate decoupling methodology pursuant to subparagraph (1), include in the draft application prepared pursuant to paragraph (b) of subsection 5 of NAC 704.622 the information submitted pursuant to paragraphs (a), (b) and (c) of subsection 3.

     5.  If the Commission approves a request submitted pursuant to:

     (a) Paragraph (a) of subsection 1:

          (1) The Commission may adjust the utility’s authorized return on equity, as appropriate, based upon the amount of the approved adjustment.

          (2) The approved adjustment is effective until the new rates of the utility go into effect as the result of the approval of a general rate case application filed pursuant to NRS 704.110.

     (b) Paragraph (b) of subsection 1:

          (1) The Commission may adjust the utility’s authorized return on equity, as appropriate, based upon the decoupling of the revenues of the utility from the quantity of water sold by the utility.

          (2) The approved method of decoupling is effective until the utility files its next general rate case application pursuant to NRS 704.110.

          (3) The utility shall include a request either to continue or discontinue the approved method of decoupling in the next subsequent general rate case application of the utility.

     6.  If a request is submitted by a utility pursuant to paragraph (a) of subsection 1, any party to the general rate case application may propose an alternative rate design to encourage water conservation. If a party proposes an alternative rate design pursuant to this subsection, the party shall submit to the Commission the information required by paragraph (g) of subsection 2. The Commission may consider any alternative rate design proposed pursuant to this subsection for the purpose of setting rates.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6339  Request or application for designation as eligible project; requirements; action by Commission. (NRS 703.025, 704.210, 704.661, 704.663)

     1.  A large utility may include in the action plan component of the utility’s resource plan submitted pursuant to NRS 704.661 a request to designate a project for an improvement to a distribution system, production system, transmission system or wastewater system as an eligible project for which a system improvement rate may be established. The project proposed for designation as an eligible project must be a new improvement project that is included in the action plan for which the large utility seeks approval pursuant to NAC 704.5682. If the large utility furnishes both water and services for the disposal of sewage, the annual gross operating revenue of the large utility for each service must be considered separately for the purpose of determining whether the large utility is eligible to submit a request pursuant to this subsection for either service.

     2.  A utility that is not required to submit a resource plan pursuant to NRS 704.661 may file an application with the Commission to designate a project for an improvement to a distribution system, production system, transmission system or wastewater system as an eligible project for which a system improvement rate may be established.

     3.  A large utility submitting a request pursuant to subsection 1 or a utility submitting an application pursuant to subsection 2 shall include with the request or application:

     (a) A description of the project.

     (b) A statement explaining the necessity of the project.

     (c) The resulting benefits of the project to the utility and the customers of the utility upon the completion of the project.

     (d) A statement supported by written testimony that the project is not designed to increase revenues by connecting an improvement to a distribution system or wastewater system to new customers.

     (e) A statement that the project was not included in the rate base of the utility in its most recent general rate case.

     (f) A statement that the project costs for which recovery will be sought represent an investment to be made by the utility and which will not be paid by another funding source, including, without limitation, a grant, developer contribution or other form of reimbursement.

     (g) If submittal to the Commission is not otherwise required by law or regulation, the utility’s plan for construction and the proposed schedule for construction. A plan for construction and a proposed schedule for construction submitted pursuant to this paragraph must comply with the provisions of paragraph (a) of subsection 4 of NAC 704.568.

     (h) If submittal to the Commission is not otherwise required by law or regulation, a budget of planned expenditures which complies with the provisions of NAC 704.5681.

     4.  A large utility submitting a request pursuant to subsection 1 shall submit the information required pursuant to subsection 3 in addition to any information otherwise required to be submitted in support of an element of an action plan pursuant to NAC 704.565 to 704.5688, inclusive.

     5.  The Commission will:

     (a) For a request submitted by a large utility pursuant to subsection 1, approve or disapprove the request at the time the Commission makes a determination with respect to the resource plan submitted by the large utility.

     (b) For an application submitted by a utility pursuant to subsection 2, approve or disapprove the application not later than 135 days after the Commission receives the application.

     6.  As used in this section, “action plan” has the meaning ascribed to it in NAC 704.5651.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63395  Notice of request or application for designation as eligible project. (NRS 703.025, 704.210, 704.661, 704.663)

     1.  A large utility that submits a request pursuant to subsection 1 of NAC 704.6339 or a utility that submits an application pursuant to subsection 2 of NAC 704.6339 shall, not later than 30 days after the date on which the Commission receives the request or application, provide notice of the request or application to each customer of the utility. The notice may be provided directly to each customer as an insert in the bill of charges provided to each customer or by written notice mailed separately from the bill of charges.

     2.  A notice provided pursuant to subsection 1 must contain:

     (a) A brief description of the need for the system improvement rate and an estimate of its amount; and

     (b) Information concerning where a customer may obtain from the utility and the Commission additional information with respect to the system improvement rate.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.634  Commission to provide approved budget estimate. (NRS 703.025, 704.210, 704.661, 704.663)  The Commission will include with the approval of a request submitted by a large utility pursuant to subsection 1 of NAC 704.6339 or an application submitted by a utility pursuant to subsection 2 of NAC 704.6339 an approved budget estimate for the eligible project.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6341  Calculation of eligible project regulatory asset account. (NRS 703.025, 704.210, 704.661, 704.663)  The calculation for the eligible project regulatory asset account for an eligible project begins on the last day of the month during which the eligible project is placed in service and ends on the date on which the project is accounted for in the rate base of the utility as the result of the approval of a general rate case application filed pursuant to NRS 704.110.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63415  Costs must be accounted for and readily identifiable. (NRS 703.025, 704.210, 704.661, 704.663)  All costs of an eligible project must be accounted for in the books and records of a utility separately from accounts attributable to any other activity. Each regulatory asset account must be maintained in a manner that will allow costs to be readily identified.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6342  Calculation of carrying costs, annual system improvement rate revenue requirement, authorized pretax rate of return and weighted average return. (NRS 703.025, 704.210)  For the purpose of calculating carrying costs, unless otherwise established by the Commission in the utility’s general rate case, the authorized rate of return used to calculate the annual system improvement rate revenue requirement for the utility shall be deemed to be 10.2 percent. The authorized pretax rate of return must be calculated by adjusting the weighted average return on equity, which shall be deemed to be 6 percent for federal income taxes. The weighted average return on equity must be calculated using an equity ratio which shall be deemed to be 40 percent and a return on equity which shall be deemed to be 15 percent.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63425  System improvement rate: Filing deadline for application; requirements; recalculation and modification. (NRS 703.025, 704.210, 704.661, 704.663)

     1.  An application to establish a system improvement rate must be filed not later than 90 days after the completion of an eligible project.

     2.  An application filed pursuant to subsection 1 must include:

     (a) The actual cost of the eligible project and invoices supporting the calculation of the actual cost.

     (b) The approved budget for the eligible project provided by the Commission pursuant to NAC 704.634.

     (c) A calculation of the system improvement rate revenue requirement for each eligible project included in the system improvement rate. The system improvement rate revenue requirement for an eligible project must be calculated on an annual basis. The monthly system improvement rate revenue requirement is one-twelfth of the annual system improvement rate revenue requirement. The annual system improvement rate revenue requirement initially must be calculated using the information available on the last day of the month during which the eligible project is placed in service.

     (d) The proposed system improvement rate to be collected from the customers of the utility. If the eligible project is an improvement to a distribution system, production system or transmission system, the proposed system improvement rate must be based upon water consumption by each customer class during the 12-month period ending on the last day of the month during which the eligible project was placed in service. If the eligible project is an improvement to a wastewater system, the proposed system improvement rate must be based upon the customer class contribution to total revenues for the 12-month period ending on the last day of the month during which the eligible project was placed in service.

Ê The utility has the burden of proving the reasonableness and prudence of the costs incurred to develop the eligible project.

     3.  The system improvement rate revenue requirement calculated as part of an application must be recalculated in any subsequent application to establish a system improvement rate submitted pursuant to subsection 1. The system improvement rate revenue requirement must be modified annually in the manner prescribed by NAC 704.63435.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6343  System improvement rate: Approval of application; authority to limit system improvement rate revenue requirement; deadline. (NRS 703.025, 704.210, 704.661, 704.663)

     1.  The Commission may approve an application to establish a system improvement rate filed pursuant to NAC 704.63425 for the purpose of recovering:

     (a) The system improvement rate revenue requirement associated with the eligible project for which a utility files the application.

     (b) The amortized amount of the balance of the eligible project regulatory asset account for each eligible project included in the system improvement rate as calculated during the 12-month period identified in subsection 3 of NAC 704.63435.

Ê The Commission may, in establishing a new system improvement rate pursuant to this section, incorporate into the new rate an existing system improvement rate which has previously been approved pursuant to this section and which is currently being recovered by the utility. A utility shall not recover the system improvement rate revenue requirement associated with an eligible project simultaneously from more than one approved system improvement rate.

     2.  If the Commission approves the application, the Commission may, in consideration of the rate impact on the customers of the utility, limit the system improvement rate revenue requirement which is eligible for recovery through the system improvement rate to the actual prudently incurred costs related to the eligible project or the approved project budget provided by the Commission pursuant to NAC 704.634, whichever is less.

     3.  If the Commission does not approve the application within 120 days after the filing date of the application, the application shall be deemed denied unless the Commission or presiding officer issues an order extending the time by which the application must be approved.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63435  System improvement rate: Annual application for continuation or adjustment; requirements; deadline for approval. (NRS 703.025, 704.210, 704.661, 704.663)

     1.  A utility that is charging a system improvement rate shall, on or before April 1 of each year after the establishment of the system improvement rate, file an application recommending continuation of the system improvement rate or an adjustment to the system improvement rate.

     2.  An application filed pursuant to subsection 1:

     (a) Must:

          (1) Provide the most current balance in the regulatory asset account for the system improvement rate.

          (2) Recommend an adjustment to account for the difference between the actual revenues from the system improvement rate and the uncollected balance of the system improvement rate revenue requirement.

     (b) May recommend an adjustment to account for the amortized amount of the reported balance of the regulatory asset account for the system improvement rate. If the utility does not provide a recommendation pursuant to this paragraph, the utility shall provide an explanation for the omission of the recommendation.

     3.  For any adjustment recommended pursuant to subsection 2:

     (a) If the eligible project for which the recommendation is proposed is an improvement to a distribution system, production system or transmission system, the recommended adjustment to the system improvement rate must be based upon water consumption by each customer class during the 12-month period for which the application is filed.

     (b) If the eligible project for which the recommendation is proposed is an improvement to a wastewater system, the recommended adjustment must be based upon the customer class contribution to total revenues for the 12-month period for which the application is filed.

     4.  If the Commission does not approve the application within 120 days after the filing date of the application, the application shall be deemed denied unless the Commission or presiding officer issues an order extending the time by which the application must be approved.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6344  Applicability of certain provisions. (NRS 703.025, 704.110, 704.210)  The provisions of NAC 704.63445, 704.6345 and 704.63455 apply only to a general rate case filed pursuant to NRS 704.110 by a utility that, with respect to the provision of water or sewer service had an annual gross operating revenue of $2,000,000 or more for at least 1 year during the immediately preceding 3 years. If the utility furnishes both water and services for the disposal of sewage, its annual gross operating revenue for each service must be considered separately for determining whether the utility meets the requirements of this section for either service.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63445  Test year data for unadjusted water consumption; cost of service study. (NRS 703.025, 704.110, 704.210)

     1.  A utility shall, not less than 45 days before the date on which it files a general rate case application pursuant to NRS 704.110, provide test year data for unadjusted water consumption in an executable format to the Regulatory Operations Staff of the Commission and the Bureau of Consumer Protection in the Office of the Attorney General.

     2.  The Regulatory Operations Staff or the Bureau of Consumer Protection will, not later than 10 business days after receipt of the data provided pursuant to subsection 1, notify the utility whether the utility must file a cost of service study for each customer class of the utility with the general rate case application of the utility.

     3.  If a utility receives a notice of requirement from the Regulatory Operations Staff or the Bureau of Consumer Protection pursuant to subsection 2, the utility shall complete the cost of service study and file the results of the study with the general rate case application of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6345  Considerations of Commission in establishing requirements for revenue generated from certain customer classes. (NRS 703.025, 704.110, 704.210)  The Commission will consider, in establishing the requirements for revenue generated from each customer class that is supplied with water by a utility and in designing the rates for that service:

     1.  The cost of service to each customer class as determined in a cost of service study conducted pursuant to subsection 3 of NAC 704.63445.

     2.  The value of the utility’s service to each customer class and to each individual customer.

     3.  The ratio of the average demand for service by an individual customer or a customer class to the peak demand for that service during a period specified by the Commission.

     4.  The need for continuity in the rates.

     5.  The need for understandable rates.

     6.  The effects of any alternatives for obtaining revenue from each customer class.

     7.  The effects of designing rates on:

     (a) Conservation.

     (b) Efficiency.

     (c) Equity.

     (d) The operating margin.

     (e) The stability of revenues.

     (f) The ratio of the average demand on a utility’s system to the peak demand on the system during a period specified by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63455  Alternative methods for analyzing results of cost of service study. (NRS 703.025, 704.110, 704.210)  Any party to a general rate case application may provide an alternative method or methods of analyzing the results of a cost of service study conducted pursuant to subsection 3 of NAC 704.63445 for the purpose of determining the portion of the revenue requirement that may be recovered from each customer class in consideration of the rate impacts on each customer class. The Commission may consider any alternative method provided pursuant to this section for the purpose of setting rates.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

ACCOUNTING PRACTICES AND RATE MAKING FOR CERTAIN UTILITIES

Uniform System of Accounts

      NAC 704.640  Natural gas companies. (NRS 703.025, 703.191, 704.210)

     1.  The Commission hereby adopts by reference the regulations contained in 18 C.F.R. Part 201 in the form most recently published by the United States Government Printing Office. The volume containing 18 C.F.R. Parts 1-399 is available by mail from the Superintendent of

 

Documents, United States Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $68. The regulations may be accessed free of charge on the Internet at http://www.gpo.gov/fdsys.

     2.  The Commission will review each revision of the publication adopted by reference in subsection 1 to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, the Commission will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     [Pub. Service Comm’n, Gen. Order 14, eff. 8-30-71]—(NAC A by Pub. Utilities Comm’n by R051-09, 1-28-2010; R011-15, 10-27-2015)

      NAC 704.645  Telephone companies. (NRS 703.025, 703.191, 704.210)

     1.  The Commission hereby adopts by reference the regulations contained in 47 C.F.R. Part 32, Uniform System of Accounts for Class A and B Telephone Companies, as those regulations exist on January 1, 1988. That Part is available by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://www.bookstore.gpo.gov, for the price of $18.

     2.  Except as otherwise provided in subsection 3, each company shall disclose, in an attachment to its annual report to the Commission, any changes in methods of accounting or allocation which it has made during the reporting period. The attachment must include a description of the previous methods of accounting or allocation used, the present methods of accounting or allocation used and a calculation of the approximated impact of each change in method upon the company’s weighted cost of capital, rate base and summary of earnings.

     3.  The provisions of subsection 2 do not apply to a competitive supplier.

     [Pub. Service Comm’n, Gen. Order 13, eff. 8-30-71]—(NAC A 4-18-90; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.650  Electric power companies. (NRS 703.025, 703.191, 704.210)

     1.  The Commission hereby adopts by reference the regulations contained in 18 C.F.R. Parts 41, 101 and 290 in the form most recently published by the United States Government Printing Office. The volume containing 18 C.F.R. Parts 1-399 is available by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $68. The regulations may be accessed free of charge on the Internet at http://www.gpo.gov/fdsys.

     2.  The Commission will review each revision of the publication adopted by reference pursuant to subsection 1 to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, the Commission will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     [Pub. Service Comm’n, Gen. Order 15, eff. 8-30-71]—(NAC A by Pub. Utilities Comm’n by R051-09, 1-28-2010; R011-15, 10-27-2015)

Adjustment of Rates in Conformity With Federal Tax Reform

      NAC 704.6502  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.6502 to 704.6546, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.6504 to 704.6522, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6504  “Allowance for funds used during construction” defined. (NRS 703.025, 704.210)  “Allowance for funds used during construction” means the amount properly recorded in P.S.C.N. Account 107 by a utility to reflect the cost of money used to finance construction work in progress.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6506  “Average rate assumption method” defined. (NRS 703.025, 704.210)  “Average rate assumption method” means the method under which the excess tax reserve is reduced over the remaining lives of the property as used in the utility’s regulated books of account which gave rise to the reserve for deferred income taxes, as noted in section 203(e), “Excess Deferred Taxes Related to Changes in Tax Rates,” of the Tax Reform Act of 1986.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6508  “Contributions” defined. (NRS 703.025, 704.210)  “Contributions” means cash or noncash property of which the utility has a beneficial use pursuant to section 118 of the Internal Revenue Code, 26 U.S.C. § 118, as amended. The term includes contributions in aid of construction and customer advances.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.651  “Excess tax reserve” defined. (NRS 703.025, 704.210)  “Excess tax reserve” means the excess of the reserve for deferred taxes, over the amount which would be the balance in the reserve if the amount of the reserve were determined by assuming that the reductions in corporate income tax rate provided in the Tax Reform Act of 1986 were in effect for all prior periods.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6512  “Income tax gross up” defined. (NRS 703.025, 704.210)  “Income tax gross up” means the additional contribution amount calculated pursuant to NAC 704.6532 which is required to indemnify the utility for the additional income tax liability as a result of section 118 of the Internal Revenue Code, 26 U.S.C. § 118, as amended (i.e., “related income tax impact”).

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6514  “P.S.C.N. Account 107” defined. (NRS 703.025, 704.210)  “P.S.C.N. Account 107,” entitled “Construction Work in Progress,” means a balance sheet account which includes the total of the balances of work orders for an item of a utility plant in the process of construction.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6516  “Reverse” defined. (NRS 703.025, 704.210)  “Reverse” means the date certain when for a certain depreciable plant asset or vintage group of assets, the amount of book depreciation first exceeds tax depreciation.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6518  “Reverse South Georgia method” defined. (NRS 703.025, 704.210)  “Reverse South Georgia method” means a method whereby a taxpayer computes the excess tax reserve on all public utility property included in the plant account on the basis of the weighted average life or composite rate used to compute depreciation for regulatory purposes and reduces the excess tax reserve ratably over the remaining regulatory life of the property.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6522  “Vintage” and “vintage group” defined. (NRS 703.025, 704.210)  “Vintage” or “vintage group” means the combination, into a group, of the plant’s assets constructed or acquired in a single fiscal or vintage year. From this group an average life or average service life of a category or account is determined as a unit. Each group contains homogeneous units of plants which are generally alike in character, generally used in the same manner throughout the plant, and operate under the same general conditions.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6524  Provisions obtainable from Internal Revenue Service. (NRS 703.025, 704.210)

     1.  Sections 49, 59A, 118, 166, 167, 168, 172, 263A, and 451 of the Internal Revenue Code may be obtained from the Internal Revenue Service.

     2.  Sections 203(e), 463, and 701(a) of the Tax Reform Act of 1986 (Public Law 99-514) may be obtained from the Internal Revenue Service.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6526  Rules for rate making. (NRS 703.025, 704.210)

     1.  For the purpose of rate making, generally, any timing difference, excluding that associated with items previously flowed through, must be normalized at the applicable current corporate income tax rate.

     2.  Any item of deferred income tax that is generated and associated with items of rate base must be included in the calculation of rate base, including, without limitation, any income tax gross up amounts required by NAC 704.6532.

     3.  Any item of deferred income tax that is generated and associated with items of nonrate-base items must be excluded from rate base.

     4.  Deferred income tax balances must be adjusted to reflect changes in the statutory corporate income tax rate and these adjustments must be amortized to cost of service over a period of time to be determined by the Commission.

     5.  The rate-making treatment associated with items previously flowed through will be determined by the Commission on a case-by-case basis.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6528  Determination of rate base. (NRS 703.025, 704.210)

     1.  For rate-making purposes, the recorded book balances as of the end of the certification period must be used for the following accounts:

     (a) Plant in service;

     (b) Accumulated reserve for book depreciation; and

     (c) Accumulated deferred federal income taxes applicable to accelerated tax depreciation.

     2.  Annualized expenses for rate-making purposes applicable to recorded book plant in service balances as of the end of the certification period include:

     (a) Annualized accelerated tax depreciation on plant balances at the end of the certification period must be calculated and used to calculate the company’s federal income taxes currently payable expense.

     (b) Annualized book depreciation must be calculated for recorded book balances for plant in service at the end of the certification period and reflected as book depreciation expense.

     (c) A calculation must be made utilizing accelerated tax depreciation and straight-line depreciation on plant balances at the end of the certification period. This calculation will be used to generate the annualized deferred federal income taxes applicable to accelerated depreciation and be reflected as a component of cost of service.

     3.  If a corporation chooses not to use a certification period, subsections 1 and 2 will apply to the end of test period balances.

     4.  The above procedure for rate base will reflect a historic rate base which is known and measurable at the end of the certification period for all components of rate base. Cost of service must reflect the annualized expense level for that plant at the end of the certification period. Therefore, all components of cost of service have been synchronized to the end of certification period plant balances.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.653  Calculation of allowance for funds used during construction; inclusion of deferred income tax as component of rate base. (NRS 703.025, 704.210)

     1.  Unless otherwise ordered by the Commission, the rate to be used in the calculation of the allowance for funds used during construction will be the lesser of the gross rate computed in accordance with the provisions of Electric Plant Instructions 3(17) of the Federal Energy Regulatory Commission’s Uniform System of Accounts or the current authorized overall rate of return of the utility as established by the Commission.

     2.  To the extent the use of avoided interest calculations pursuant to the Internal Revenue Code creates timing differences, deferred income tax must be calculated and included as a component of rate base.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6532  Contributions to corporate capital. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference section 118 of the Internal Revenue Code, 26 U.S.C. § 118, as amended.

     2.  All contributions made pursuant to section 118 of the Internal Revenue Code will be increased by an income tax gross up amount pursuant to this section and the utility’s tariff. Except as otherwise provided in subsection 8, the income tax gross up will be calculated under the method as described in subsection 3 for depreciable assets and the method as described in subsection 5 for nondepreciable assets. For rate-making purposes, contributions will be treated as described in subsection 7.

     3.  For depreciable assets, the income tax gross up percentage is the present value of the sum of annual revenue requirements associated with the inclusion of the contribution-related federal income tax amount in the rate base divided by the contribution. The contribution-related federal income tax amount is calculated by multiplying the contribution by the marginal statutory federal income tax rate for the utility. The discount rate to be used in calculating the present value of the sum of annual revenue requirements associated with the inclusion of the contribution-related federal income tax amount in the rate base is the interest rate set for customer deposits that is effective on January 1 of that year in accordance with NRS 704.655. Until the utility has recovered the contribution-related federal income tax amount through the tax benefits of accelerated depreciation on the amount of the contribution, the annual revenue requirement associated with the inclusion of the contribution-related federal income tax amount in the rate base must be calculated using the pretax authorized rate of return for the utility. Except as otherwise provided in subsection 4, the pretax authorized rate of return for the utility must be calculated using a return on equity for the utility that is increased by the statutory income tax rate applicable to the utility using the methodology set forth in subsection 5. For the purpose of calculating the income tax gross up amount for the first year, the annual revenue requirement shall be deemed to be earned at the midpoint of the year.

     4.  For the purpose of subsection 3, unless otherwise determined by the Commission in a water or sewer utility’s general rate case, the authorized rate of return used to calculate the annual revenue requirement for the water or sewer utility shall be deemed to be 10.2 percent. This authorized rate of return is calculated by adjusting the weighted average return on equity, which is deemed to be 6 percent, for federal income taxes. This weighted average return on equity is calculated using an equity ratio which is deemed to be 40 percent and a return on equity which is deemed to be 15 percent.

     5.  For nondepreciable assets, in addition to the contribution, the contributor pays the full income tax burden utilizing the statutory income tax rate applicable to that utility. The income tax gross up percentage is 1 divided by the difference between 1.00 and the statutory income tax rate applicable to that utility. For example, using a 35 percent income tax rate, the income tax gross up percentage is 1 divided by 0.65 (1.00 - 0.35), which equals 1.538462.

     6.  The utility must file a revision to the income tax gross up percentage in its tariff annually to reflect the interest rate set for customer deposits that is effective on January 1 of that year in accordance with NRS 704.655. In addition, the utility must file a revision to the income tax gross up in its tariff when a change in one or more of the components of the income tax gross up calculation, as provided in subsection 3 or 5, would result in a change in the income tax gross up percentage of 1 percent or more.

     7.  The account activity and balances resulting from accounting for the gross up on contributions would be afforded rate-making treatment. For example, deferred federal income tax assets that result from the inclusion of the contribution and income tax gross up in taxable income would be included in the rate base and increase revenue requirement. Conversely, revenue requirement would be reduced as the benefit of future tax depreciation deductions reduces related deferred taxes (i.e., rate base), and as deferred income (i.e., income tax gross up) is amortized and recognized.

     8.  Utilities that receive annual amounts of contributions which are less than 1 percent of total operating revenues or which qualify for simplified procedures or methodologies for a change of rates pursuant to NRS 704.095 may, in lieu of an income tax gross-up method elect to use one of the following methods:

     (a) Rate-base method. The amount of the contribution would not be subject to a gross up. Increased federal income tax that results from the inclusion of the contribution in taxable income would be afforded deferred income tax treatment, thereby increasing rate base. The benefit of future tax depreciation deductions are used to reduce rate base (rate-base effects are reduced to zero at the end of the related assets’ tax life).

     (b) Flow-through method. The amount of the contribution would not be subject to a gross up. Increased federal income tax that results from the inclusion of the contribution in taxable income would increase current federal income tax expense for rate-making purposes. Future tax depreciation benefits would reduce federal income tax expense for rate-making purposes.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6534  Normalization of timing differences. (NRS 703.025, 704.210)

     1.  This section applies only to those timing differences which are mandated to be normalized by the Internal Revenue Code.

     2.  Excess income tax reserves must be calculated for each vintage of assets appearing on a utility’s regulated books of account. The vintages must be analyzed and computed pursuant to section 203(e) of the Tax Reform Act of 1986.

     3.  For those utilities which do not maintain vintage records, a reverse South Georgia method may be used to amortize excess deferred income tax reserves if the use of that method is approved by the Internal Revenue Service.

     4.  The Commission hereby adopts by reference section 203(e) of the Tax Reform Act of 1986.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6536  Net operating loss carrybacks and carryovers. (NRS 703.025, 704.210)

     1.  To the extent losses from the operation of a business are the result of differences unrelated to timing, the effects of carrybacks or carryovers pursuant to section 172 of the Internal Revenue Code, 26 U.S.C. § 172, as amended, must not be considered in determining income taxes in a test year in rate proceedings.

     2.  The Commission hereby adopts by reference section 172, “Net Operating Loss Deduction,” of the Internal Revenue Code, 26 U.S.C. § 172, as amended.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6538  Capitalization and inclusion in inventory costs of certain expenses. (NRS 703.025, 704.210)  The Commission hereby adopts by reference section 263A, “Capitalization and Inclusion in Inventory Costs of Certain Expenses,” of the Internal Revenue Code, 26 U.S.C. § 263A, as amended.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6542  Alternative minimum tax. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference sections 53, “Credit for Prior Year Minimum Tax Liability,” and 55, “Alternative Minimum Tax Imposed,” of the Internal Revenue Code, 26 U.S.C. §§ 53 and 55, as amended.

     2.  For the purposes of rate making, incurrence of a minimum tax must not be included in the determination of income tax expense for the cost of service.

     3.  When establishing the net-to-gross multiplier, the income tax rate to be used is the statutory rate by reference to section 11 of the Internal Revenue Code, 26 U.S.C. § 11, as amended.

     4.  Since the amount paid as minimum tax in any one year can be carried forward as a credit against future years’ income tax liabilities, the actual amount paid must be recorded as prepaid tax and included in the cash working capital component of rate base.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6544  Environmental tax. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference section 59A of the Internal Revenue Code, 26 U.S.C. § 59A, as amended, which establishes a fund for the environmental tax to clean up hazardous substances through 1995.

     2.  For the purposes of rate making, this excise tax must be reflected in the utility’s cost of service.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6546  Use of separate-entity method by utility members of consolidated group. (NRS 703.025, 704.210)

     1.  In computing federal income taxes, utility members of a consolidated group must use a separate-entity method, rather than a consolidated-company approach which includes impacts of nonutility and affiliated operations.

     2.  As used in this section, “consolidated group” means the combination of two or more affiliated corporations or enterprises for the purposes of financial statements, income tax returns, or both, which may include utility and nonutility operations or entities.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

Rate Design for Certain Electric Utilities

      NAC 704.655  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.655 to 704.665, inclusive, apply only to Sierra Pacific Power Company and Nevada Power Company.

     [Pub. Service Comm’n, Gen. Order 33 § 1.2, eff. 9-17-82]

      NAC 704.660  Consideration of marginal cost of service in determining class revenue requirements. (NRS 703.025, 704.210)  The Commission will consider a utility’s marginal (incremental) cost of service to each class of customer in determining the revenue required from that class.

     [Pub. Service Comm’n, Gen. Order 33 § 2.0, eff. 9-17-82]

      NAC 704.662  Rate design based on marginal cost of service. (NRS 703.025, 704.210)

     1.  The rates charged by the utility for supplying electricity to customers of a particular class must reflect the marginal (incremental) cost of serving that class, including any seasonal or hourly differences in the cost of the service, unless the Commission determines, in a proceeding to establish or change the rate, that:

     (a) In the case of a proposed rate which reflects seasonal differences in the cost of service:

          (1) Those differences are so insignificant that application of the rate would not result in conservation of electric energy or efficient use of facilities and resources; or

          (2) Application of the proposed rate would unreasonably affect the utility’s financial condition.

     (b) In the case of a proposed rate which would reflect hourly differences in the cost of service, the cost of providing meters capable of registering the use of electricity during the particular hours when a particular charge for that use is in effect would be greater than the benefits of conservation of electric energy and efficient use of facilities and resources which would be obtained from use of the proposed rate.

     (c) In any case:

          (1) The rate would not be equitable; or

          (2) The expected level of understanding or acceptance of the rate by the customers of the class to which the rate would apply is such that the rate would not likely serve the purpose of this regulation.

     2.  In developing a rate which will reflect the costs described in subsection 1, the utility may group hours of the day, during which the costs of service are of similar magnitude, into two or more daily periods in order to prevent confusion.

     3.  If the utility will incur a net loss of revenue as a result of instituting a rate which reflects the seasonal variations in the cost of service, the utility may apply to the Commission for authority to change its rates in order to obtain expedited recovery of the loss.

     [Pub. Service Comm’n, Gen. Order 33 § 3.0, eff. 9-17-82]

      NAC 704.665  Special rate for interruptible service. (NRS 703.025, 704.210)  Each utility shall each offer a special rate, based on the marginal (incremental) cost of service, for interruptible service when the benefits to the utility in the long run are likely to exceed its costs of providing the service, including its costs of controlling or verifying interruptions.

     [Pub. Service Comm’n, Gen. Order 39, eff. 9-17-82]

Rate Design for Certain Natural Gas Utilities

      NAC 704.6671  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.6671 to 704.6679, inclusive, unless the context otherwise requires:

     1.  “Conservation” means the reduction or elimination of the misallocation of energy which occurs when consumption is less than or greater than the level which would exist in optimal market conditions, for a reason such as improper pricing.

     2.  “Cost of service” means the average (embedded) or the marginal cost of supplying natural gas.

     3.  “Efficiency” means the optimal use of the variable inputs which are necessary for the provision of natural gas.

     [Pub. Service Comm’n, Gen. Order 36 § 2.0, eff. 10-14-82]

      NAC 704.6673  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.6671 to 704.6679, inclusive, apply:

     1.  To utilities engaged in the intrastate sale of natural gas in Nevada.

     2.  Only in a general proceeding to fix rates unless the Commission, on its own motion or upon the timely motion of an interested person, determines that these sections should apply in a separate proceeding to modify the manner in which the revenue to be obtained from each class of customers is determined or the manner in which the rates are designed.

     [Pub. Service Comm’n, Gen. Order 36 § 1.0 subsec. 1.2, eff. 10-14-82]

      NAC 704.6675  Considerations for determination of rates for classes of customers. (NRS 703.025, 704.210)  In determining a utility’s requirements to obtain revenue from each class of customers being supplied with natural gas and in designing the rates for that service, the Commission will consider:

     1.  The cost of service to each class of customers;

     2.  The value of the utility’s service to each class of customers and to each individual customer;

     3.  The ratio of the average demand for service by an individual customer or a class of customers to the peak demand for that service during a particular period;

     4.  The need for continuity in the rates;

     5.  The supply of natural gas;

     6.  The need for understandable rates;

     7.  The effects of any alternatives for obtaining revenue from each class of customers and designing rates on:

     (a) Conservation;

     (b) Efficiency;

     (c) Equity;

     (d) The operating margin;

     (e) The stability of revenues; and

     (f) The ratio of the average demand on a utility’s system to the peak demand on the system during a particular period.

     [Pub. Service Comm’n, Gen. Order 36 § 3.0 subsec. 3.1, eff. 10-14-82]

      NAC 704.6677  Rates to be designed to conserve energy. (NRS 703.025, 704.210)  The Commission will not:

     1.  Allocate a utility’s requirements to obtain revenue from each class of customers; or

     2.  Design rates,

Ê in a manner which will hinder the conservation or efficient use of energy, unless equity so requires.

     [Pub. Service Comm’n, Gen. Order 36 § 3.0 subsec. 3.2, eff. 10-14-82]

      NAC 704.6679  Filing requirements for proceeding to establish or change rates. (NRS 703.025, 704.210)  In a proceeding to establish or change its rates, a utility shall file:

     1.  A study of the cost of service;

     2.  Illustrative rates for all classes of customers based on the study of the cost of service;

     3.  A statement of the cost of the gas supplied to the utility;

     4.  A statement of the cost of the gas supplied to the utility’s suppliers;

     5.  A statement of the utility’s projected supply of gas for the 10 years immediately following the proceeding, differentiating between the supplies which are currently under contract and those which are not;

     6.  A statement of the projected supply of gas of the utility’s suppliers during the 10 years immediately following the proceeding, differentiating between the supplies which are currently under contract and those which are not; and

     7.  A statement of the current prices of alternate fuels for each class of customers, including a projection of those prices for the year following the proceeding.

     [Pub. Service Comm’n, Gen. Order 36 § 4.0, eff. 10-14-82]

Rates for Interruptible Service

      NAC 704.673  Establishment of rate. (NRS 703.025, 704.210, 704.225)  To establish the rate for interruptible service:

     1.  The Regulatory Operations Staff of the Commission shall, on or before August 1 of each year, submit to each public utility, municipal utility and cooperative association in this State a request for information as to the lowest total rate per kilowatt-hour charged by the public utility, municipal utility or cooperative association, respectively, under any of its applicable rate schedules to its residential, commercial or industrial customers or members in this State.

     2.  Each public utility, municipal utility and cooperative association that receives a request for information pursuant to subsection 1 shall, on or before September 1 of the year in which the request is made, provide the requested information to the Regulatory Operations Staff of the Commission.

     3.  The Regulatory Operations Staff of the Commission shall, on or before September 15 of each year, provide to each utility furnishing electricity for interruptible service and the Bureau of Consumer Protection in the Office of the Attorney General the information received pursuant to subsection 2.

     4.  A public utility which furnishes electricity for interruptible service shall, on or before November 1 of each year, file an application with the Commission to revise the rate for interruptible service, calculated in accordance with the provisions of NRS 704.225 using the information provided pursuant to subsection 3.

     (Added to NAC by Pub. Utilities Comm’n by R070-07, eff. 4-17-2008)

      NAC 704.675  Schedule; annual charges. (NRS 703.025, 704.210, 704.225)

     1.  For the period from November 1 to the last day in February, inclusive:

     (a) The schedule containing the rate for interruptible service pursuant to NRS 704.225 must provide for charges which are the same as those provided in the utility’s regular schedule of rates for irrigation.

     (b) Annual charges must be prorated, and any amount attributable to the period from March 1 to October 31, inclusive, must be excluded.

     2.  The schedule containing the rate for interruptible service pursuant to NRS 704.225 must include a provision requiring the customer to agree to an interruption of service at any time during the period from March 1 to October 31, inclusive, upon notification by the utility pursuant to the conditions set forth in the utility’s tariff for interruptible service.

     [Pub. Service Comm’n, Gen. Order 34 § 3.0, eff. 2-5-82]—(NAC A 12-17-87; A by Pub. Utilities Comm’n by R070-07, 4-17-2008; R043-12, 11-1-2012)

      NAC 704.680  Recovery of deficiency. (NRS 703.025, 704.210, 704.225)  If a utility anticipates that a deficiency in revenue will result from its provision of the rate for interruptible service pursuant to NRS 704.225, it shall recover the deficiency and do so in the manner directed by the Commission for that utility.

     [Pub. Service Comm’n, Gen. Order 34 § 4.0, eff. 2-5-82]—(NAC A by Pub. Utilities Comm’n by R070-07, 4-17-2008)

ADDITIONAL REGULATIONS CONCERNING CERTAIN TELECOMMUNICATION SERVICES

General Requirements and Exemptions for Certain Providers and Services

     NAC 704.6802  Designation of companies as providers of last resort. (NRS 703.025, 704.210)

     1.  The following companies or their successors are designated as providers of last resort and shall provide basic network service and business line service to all current and future subscribers within their respective service territories, as filed with and approved by the Commission:

     (a) Beehive Telephone Co., Inc., Nevada;

     (b) Central Telephone Company, d.b.a. Embarq;

     (c) CenturyTel of the Gem State, Inc., d.b.a. CenturyTel;

     (d) Citizens Telecommunications Company of Nevada, d.b.a. Frontier Communications of Nevada;

     (e) Filer Mutual Telephone Company;

     (f) Lincoln County Telephone System, Inc.;

     (g) Moapa Valley Telephone Company;

     (h) Nevada Bell Telephone Company, d.b.a. AT&T Nevada and AT&T Wholesale;

     (i) Oregon–Idaho Utilities, Inc., d.b.a. Humboldt Telephone Company;

     (j) Rio Virgin Telephone Company, d.b.a. Rio Virgin Telephone & Cablevision;

     (k) Rural Telephone Company; and

     (l) Verizon California Inc., d.b.a. Verizon Nevada.

     2.  The companies identified in subsection 1, other than Nevada Bell Telephone Company, d.b.a. AT&T Nevada and AT&T Wholesale, and Central Telephone Company, d.b.a. Embarq, are designated as the providers of last resort for intrastate interexchange toll service within their respective service territories, as defined in tariffs on file with the Commission on January 1, 2007, and shall provide those services between all points of origination and termination within those territories.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A 7-10-96; A by Pub. Utilities Comm’n by R136-07, 1-30-2008; R191-07, 4-17-2008)

      NAC 704.68026  Certain exemptions for provider of commercial mobile radio services. (NRS 703.025, 704.210)  A provider of commercial mobile radio services is exempt from the provisions of this chapter, except that the provisions of NAC 704.6804 to 704.68056, inclusive, and 704.786, 704.7862 and 704.7864 do apply to a provider of commercial mobile radio services.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R124-99, 11-15-99; R058-17, 12-19-2017)

      NAC 704.68028  Confirmation of certain orders for change of telecommunication service. (NRS 703.025, 704.210)  A telecommunication provider shall not submit to another provider of basic service or other provider of local exchange service an order to change telecommunication service generated by telemarketing, door-to-door canvassing or other marketing methods until the order has been confirmed in accordance with at least one of the following procedures:

     1.  The telecommunication provider may obtain the written authorization of the customer to submit the order which confirms:

     (a) The customer’s billing name and address and each telephone number to be covered by the change of service;

     (b) The customer’s decision to change the service; and

     (c) The customer’s understanding of the fee charged for changing the service.

     2.  The telecommunication provider may electronically obtain the customer’s authorization to submit the order if the authorization confirms the information described in subsection 1 and the customer is confirming the authorization from the telephone number on which the service is to be changed. A telecommunication provider electing to confirm sales electronically shall establish one or more toll-free telephone numbers exclusively for that purpose. A call to the toll-free telephone number must connect a customer to a voice response unit, or similar mechanism, that records the required information regarding the change of service. Such a unit or mechanism must automatically record the number of the telephone from which the customer is calling to confirm the order to change service.

     3.  An appropriately qualified and independent third person who is in a location which is physically separate from that of the marketing representative who took the order for the change in service may obtain the customer’s oral authorization to submit the order to change service. The oral authorization must confirm and include appropriate verification data, such as the date of birth of the customer.

     4.  Within 3 business days after the customer’s order to change service, the telecommunication provider may send the customer by first-class mail an information package which includes, but is not limited to:

     (a) A statement that the information is being sent to confirm a marketing order which was placed by the customer within the previous week;

     (b) The name of the customer’s current telecommunication provider;

     (c) The name of the newly requested telecommunication provider;

     (d) A description of the terms and conditions that will be changed and the charges that will be incurred as a result of the change;

     (e) The name of the person ordering the change;

     (f) The name, address and telephone number of both the customer and the soliciting telecommunication provider;

     (g) A postcard, with postage prepaid, which the customer must complete and return to the provider to deny, cancel or confirm the change in service; and

     (h) The name, address and telephone number of the Division of Consumer Complaint Resolution of the Commission for consumer complaints.

Ê A telecommunication provider must wait until it has received the postcard, with postage prepaid, confirming the customer’s order for a change in the service before submitting that order.

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

Performance Standards and Penalties to Encourage Competition and Discourage Discrimination

      NAC 704.6803  “Nonrural incumbent local exchange carrier” defined. (NRS 703.025, 704.210, 704.6881)  As used in NAC 704.6803 to 704.680315, inclusive, unless the context otherwise requires, “nonrural incumbent local exchange carrier” means an incumbent local exchange carrier that does not meet the definition of a rural telephone company set forth in 47 U.S.C. § 153(37).

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680301  Applicability; purpose. (NRS 703.025, 704.210, 704.6881)  The provisions of NAC 704.6803 to 704.680315, inclusive:

     1.  Apply to interconnection, unbundled network elements and resold services of nonrural incumbent local exchange carriers; and

     2.  Are to be used to:

     (a) Determine whether interconnection, unbundled network elements and resold services provided by nonrural incumbent local exchange carriers to competitive local exchange carriers are at least equal in quality to that provided by the nonrural incumbent local exchange carrier to itself or to any subsidiary, affiliate or any other party; and

     (b) Provide remedies if those standards are not met.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680302  Authority of certain providers to file petition for exemption from requirements relating to performance standards and penalties. (NRS 703.025, 704.210, 704.6881)

     1.  Any telecommunication provider required to file a plan pursuant to NAC 704.680303 prior to January 1, 2018, may file with the Commission a petition requesting an exemption, in whole or in part, from the requirements of NAC 704.680303 to 704.680315, inclusive. The Commission will, at the request of any party, conduct a hearing on the petition and issue an order denying the petition or setting forth the requirements of NAC 704.680303 to 704.680315, inclusive, from which the telecommunication provider is exempt.

     2.  If a telecommunication provider files a petition pursuant to subsection 1, the Commission will exempt the telecommunication provider from a requirement of NAC 704.680303 to 704.680315, inclusive, if the Commission finds that:

     (a) The requirement is no longer necessary to encourage competition and discourage discriminatory conduct in the provision of local telecommunication services; and

     (b) The granting of the exemption would not be contrary to the public interest.

     3.  If the Commission issues an order granting a telecommunication provider an exemption, in whole or in part, from the requirements of NAC 704.680303 to 704.680315, inclusive, the telecommunication provider is exempt from those requirements to the extent set forth in the order.

     4.  If the Commission denies a petition filed pursuant to subsection 1, the telecommunication provider who submitted the petition may not file another petition pursuant to this section until at least 18 months after the filing date of the petition that was denied.

     (Added to NAC by Pub. Utilities Comm’n by R113-17, eff. 5-16-2018)

      NAC 704.680303  Plans for reporting and auditing performance measures and establishing performance incentives: Request for approval; hearing; issuance of order; period of validity; request for modification. (NRS 703.025, 704.210, 704.6881)

     1.  A nonrural incumbent local exchange carrier shall, in accordance with NAC 704.6803 to 704.680315, inclusive, file with the Commission a request for the approval of:

     (a) A plan for the reporting and auditing of performance measures; and

     (b) A plan establishing performance incentives.

     2.  The Commission will conduct a hearing on a request for approval of the plans submitted pursuant to subsection 1. At such a hearing, any certificated competitive local exchange carrier doing business in the service areas of the nonrural incumbent local exchange carrier that filed the request for approval may request modifications to the plans.

     3.  The Commission will issue an order granting, denying or modifying a request for the approval or modification of the plans submitted pursuant to subsection 1 or 5.

     4.  A plan which is approved by the Commission pursuant to this section remains in effect until the Commission:

     (a) Modifies the plan pursuant to this section; or

     (b) Issues an order pursuant to NAC 704.680302 exempting the telecommunication provider, in whole or in part, from the requirement to file the plan or from a requirement set forth in the plan.

     5.  Except as otherwise provided in subsection 6:

     (a) A certificated competitive local exchange carrier may, upon good cause shown, file with the Commission a petition requesting modification of a plan of a telecommunication provider which has been approved pursuant to this section. A petition filed pursuant to this paragraph by a certificated competitive local exchange carrier must state the good cause for the filing of the petition and may include, without limitation, revisions or additions to the performance measurements filed pursuant to NAC 704.680305 or to a system of penalties determined pursuant to NAC 704.680315. If a certificated competitive local exchange carrier shows good cause for the filing of a petition pursuant to this paragraph, at the request of any party to the petition, the Commission will hold a hearing on the petition.

     (b) A telecommunication provider may file with the Commission a petition requesting modification of the plan of the telecommunication provider which has been approved pursuant to this section. At the request of any party to a petition filed pursuant to this paragraph, the Commission will hold a hearing on the petition.

     6.  If the Commission issues an order granting, denying or modifying a petition for modification of a plan submitted pursuant to subsection 5, the certificated competitive local exchange carrier or the telecommunication provider who filed the petition may not file another petition for modification of the same plan until at least 18 months after the filing date of the petition that was granted, denied or modified by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R047-02, 10-24-2002; R113-17, 5-16-2018)

      NAC 704.680305  Plan for measuring performance. (NRS 703.025, 704.210, 704.6881)  A nonrural incumbent local exchange carrier shall file with the Commission a plan for measuring performance. Each set of performance measurements included in a plan for measuring performance must include an assessment for measuring the performance of a nonrural incumbent local exchange carrier for:

     1.  Preordering activities, which relate to the exchange of information between a nonrural incumbent local exchange carrier and a competitive local exchange carrier regarding current or proposed customer products and services, or any other information required to initiate the ordering of service by a competitive local exchange carrier. Such activities encompass the critical information needed to submit a provisioning order from a competitive local exchange carrier to a nonrural incumbent local exchange carrier. Measurements for preordering must report the timeliness with which the preordering inquiries are returned to a competitive local exchange carrier by a nonrural incumbent local exchange carrier. At a minimum, preordering measurements must assess the level of service provided for the following types of queries:

     (a) Address verification and required dispatch;

     (b) Requests for a telephone number;

     (c) Requests for customer service records;

     (d) Availability of service;

     (e) Scheduling of service appointments, such as due date;

     (f) Rejected and failed inquiries; and

     (g) Availability of facilities.

     2.  Ordering activities, which include the exchange of information between a nonrural incumbent local exchange carrier and a competitive local exchange carrier regarding requests for service. The number of requests from competitive local exchange carriers that automatically generate a service order in the system of a nonrural incumbent local exchange carrier that creates service orders must be reported within this category. Ordering measurements must assess the level of service for the:

     (a) Cycle time and completeness of an acknowledgment that a request for service has been received;

     (b) Cycle time of a firm confirmation that a valid request for service has been received and a due date for the request assigned;

     (c) Cycle time of rejection of any requests for service with errors; and

     (d) Cycle time and efficiency in which ordering tasks are completed by a nonrural incumbent local exchange carrier.

     3.  Provisioning, which includes the set of activities required to install, change or disconnect service to a customer, the functions to establish or condition physical facilities and the completion of any required software translations to define the feature functionality of the service. Provisioning involves communication between a competitive local exchange carrier and a nonrural incumbent local exchange carrier on the status of a service order, including any delay in meeting the commitment date and the time at which actual completion of service installation has occurred. At a minimum, provisioning measurements must assess the:

     (a) Quality of service installations;

     (b) Cycle time of the installation process; and

     (c) Cycle time of notifications to a competitive local exchange carrier that installation is completed or that installation has been delayed.

     4.  Maintenance, which involves the repair and restoration of customer service. Maintenance functions include the exchange of information between a nonrural incumbent local exchange carrier and a competitive local exchange carrier related to requests for the repair of services, the processing of trouble requests by a nonrural incumbent local exchange carrier, actual service restoration and tracking of maintenance history. At a minimum, maintenance measurements must assess the:

     (a) Cycle time in which trouble requests are resolved by a nonrural incumbent local exchange carrier; and

     (b) Quality of the process for restoring service.

     5.  Network performance, which involves the level at which a nonrural incumbent local exchange carrier provides services and facilitates the processing of calls within its network. A nonrural incumbent local exchange carrier shall complete any upgrades to its network efficiently. If an outage of a network occurs, a nonrural incumbent local exchange carrier shall notify the competitive local exchange carriers so that the competitive local exchange carriers can conduct appropriate management of their network and notify their customers. At a minimum, network performance measurements must assess the level of service provided on the:

     (a) Quality of interconnection;

     (b) Timeliness of notification of outages of the network by a nonrural incumbent local exchange carrier to the competitive local exchange carriers; and

     (c) Timeliness of upgrades to the network, including code openings, that a nonrural incumbent local exchange carrier completes on behalf of a competitive local exchange carrier.

     6.  Billing, which involves the exchange of information necessary for a competitive local exchange carrier to bill its customers, process end-user claims and adjustments, verify a bill from a nonrural incumbent local exchange carrier for services provided to the competitive local exchange carrier and to allow the competitive local exchange carrier to bill for access. Billing includes, without limitation, usage records. At a minimum, billing requirements must assess the:

     (a) Accuracy of the billing process of a nonrural incumbent local exchange carrier; and

     (b) Cycle time of the billing process of a nonrural incumbent local exchange carrier.

     7.  Collocation, which involves the provision to a competitive local exchange carrier of available space within the central end office of a nonrural incumbent local exchange carrier to allow the installation of the equipment of the competitive local exchange carrier. At a minimum, collocation measurements must assess the timeliness with which a nonrural incumbent local exchange carrier:

     (a) Processes a request for collocation from a competitive local exchange carrier; and

     (b) Provides the collocation facilities pursuant to such a request.

     8.  Updates of the databases for directory assistance, directory listings and emergency 911 services, including the processes by which these databases are updated with customer information that has changed as a result of service-provisioning activity. At a minimum, database measurements must assess the:

     (a) Timeliness by which changes to customer information are completed by a nonrural incumbent local exchange carrier; and

     (b) Accuracy by which changes to customer information are incorporated into the appropriate database.

     9.  Interfaces through which a nonrural incumbent local exchange carrier provides competitive local exchange carriers with choices for access to operation support systems for

preordering, maintenance and repair, the availability of which is fundamental to the ability of a competitive local exchange carrier to do business effectively with a nonrural incumbent local exchange carrier. At a minimum, interface measurements must assess the availability of the systems and personnel of a nonrural incumbent local exchange carrier to a competitive local exchange carrier.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680307  Requirements for performance measurements; exemption from performance measurements and reporting requirements. (NRS 703.025, 704.210, 704.6881)

     1.  Each individual measurement described in NAC 704.680305 must, at a minimum, include:

     (a) The title;

     (b) A description;

     (c) The method of calculation;

     (d) The period for which the measurement is being reported;

     (e) The structure for the report;

     (f) The level of reported disaggregation;

     (g) The standard for measurement; and

     (h) A description of the applicable business rules used, as approved by the Commission.

     2.  A nonrural incumbent local exchange carrier may not make changes to any metric, measurement process, start point, end point, definition or any other parameter that would change the measurement, unless the change has been approved by the Commission.

     3.  The Commission may exempt a nonrural incumbent local exchange carrier from its performance measures and reporting requirements set forth in its plans for measuring performance and establishing reporting requirements if the nonrural incumbent local exchange carrier demonstrates that the system processes are providing parity by design.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680309  Plan for establishing reporting requirements; monthly report of performance measurements; confidential information; access to data. (NRS 703.025, 704.210, 704.6881)

     1.  A nonrural incumbent local exchange carrier shall file with the Commission a plan for establishing reporting requirements.

     2.  A nonrural incumbent local exchange carrier shall create a monthly report of its performance measurements. Each monthly report of performance measurements must include, at a minimum, all reportable measures on file with the nonrural incumbent local exchange carrier for which there is activity during the previous month.

     3.  Not later than the 15th day of each month, a nonrural incumbent local exchange carrier shall make available on its website the monthly report of performance measurements for the previous month to each competitive local exchange carrier who has submitted an order for such information to the nonrural incumbent local exchange carrier, the Regulatory Operations Staff of the Commission and the Bureau of Consumer Protection in the Office of the Attorney General.

     4.  Not later than January 31 of each year, a nonrural incumbent local exchange carrier shall file each of its monthly reports for the immediately preceding year with the Staff of the Commission. The compilation of monthly reports of performance measurements must be on a CD-ROM or diskette. Information received pursuant to this subsection is deemed to be confidential.

     5.  A report of performance measurements must include sufficient information to allow for a determination of parity or benchmark achievement by the nonrural incumbent local exchange carrier.

     6.  When reporting begins on a new performance measurement or for a new competitive local exchange carrier, a nonrural incumbent local exchange carrier is only required to report results after a full calendar month of data is available.

     7.  Each competitive local exchange carrier must have access to its own data, aggregated data relating to all competitive local exchange carriers, data relating to the nonrural incumbent local exchange carrier and data relating to any affiliate of the nonrural incumbent local exchange carrier. Data relating to an affiliate of a nonrural incumbent local exchange carrier must not be included in the aggregated data relating to the competitive local exchange carriers.

     8.  A nonrural incumbent local exchange carrier shall make its raw data supporting its results of its performance measurements with regard to competitive local exchange carriers available to its competitive local exchange carriers, the Staff of the Commission and the Bureau of Consumer Protection in the Office of the Attorney General. A nonrural incumbent local exchange carrier shall archive its raw data for at least 24 months, and the raw data must be retained with sufficient detail so that a person requesting to see the raw data can reasonably reconcile the data captured by the nonrural incumbent local exchange carrier for a competitive local exchange carrier with the internal data of the competitive local exchange carrier.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680311  Plan establishing auditing requirements: Request for approval; minimum requirements. (NRS 703.025, 704.210, 704.6881)  A nonrural incumbent local exchange carrier must file with the Commission a request for approval of a plan establishing auditing requirements. At a minimum, a plan establishing auditing requirements must include an identification of comprehensive procedures and cost-allocation methods for an initial audit, annual audits and mini-audits.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680313  Plan establishing performance incentives. (NRS 703.025, 704.210, 704.6881)  A plan establishing performance incentives must:

     1.  Be specific in amount as it relates to applicable performance measures, and in an amount that reasonably encourages competitive conduct and discourages discriminatory conduct.

     2.  Be based on actual or statistical methods of measuring whether parity or a benchmark has been missed for a measure.

     3.  To the extent that financial payment is made to an affected competitive local exchange carrier, provide that any penalty paid as a part of that financial payment to the affected competitive local exchange carrier must be deducted, with interest, from any other award to that affected competitive local exchange carrier under any other judicial or administrative procedure for the same conduct in the same reporting period.

     4.  Be self-executing, subject to limited exceptions which must be specified in the plan.

     5.  Be subject to any other reasonable conditions or limitations approved by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680315  Plan for system of penalties. (NRS 703.025, 704.210, 704.6881)  In accordance with NRS 704.6881, the Commission will conduct a proceeding to determine for each nonrural incumbent local exchange carrier subject to the provisions of NAC 704.6803 to 704.680315, inclusive, a prescribed system of penalties for actions that are inconsistent with the standards adopted in the plans of the nonrural incumbent local exchange carrier approved by the Commission pursuant to NAC 704.680303. A nonrural incumbent local exchange carrier who has received an order from a competitive local exchange carrier shall separately file the plan for its approved system of penalties with the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

Complaints to Resolve Disputes Between Telecommunication Providers

      NAC 704.68035  Definitions. (NRS 703.025, 704.210, 704.6882)  As used in NAC 704.68035 to 704.680365, inclusive, unless the context otherwise requires:

     1.  “Complaint” means a complaint filed by one telecommunication provider against another telecommunication provider.

     2.  “Telecommunication provider” or “telephone company” has the meaning ascribed to it in NRS 704.027.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R136-07, 1-30-2008)

      NAC 704.680351  Applicability. (NRS 703.025, 704.210, 704.6882)  Notwithstanding any provision of this chapter or chapter 703 of NAC to the contrary, NAC 704.68035 to 704.680365, inclusive, apply to complaints made by a telecommunication provider against another telecommunication provider for any dispute arising out of chapters 703 and 704 of NRS, and any regulations adopted pursuant thereto.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R136-07, 1-30-2008)

      NAC 704.680353  Authority to file complaint; certification required. (NRS 703.025, 704.210, 704.6882)

     1.  A telecommunication provider may file a complaint with the Commission to resolve any dispute with another telecommunication provider arising out of chapters 703 and 704 of NRS, and any regulations adopted pursuant thereto.

     2.  Before a telecommunication provider may file a complaint with the Commission against another telecommunication provider, the telecommunication provider shall attempt to resolve the complaint directly with the other telecommunication provider.

     3.  A complaint filed with the Commission by a telecommunication provider against another telecommunication provider must include certification by the complainant that:

     (a) The parties to the complaint have met and conferred in an attempt to settle the matter, but were unable to resolve the matter; or

     (b) The other party to the complaint has refused to meet with the complainant, including a description of the attempts made by the complainant to meet and confer with the other party.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R136-07, 1-30-2008)

      NAC 704.680355  Contents and filing of complaint; protective agreement regarding discovery. (NRS 703.025, 704.210, 704.6882)

     1.  In addition to the certification required by NAC 704.680353, a complaint filed by a telecommunication provider pursuant to NAC 704.68035 to 704.680365, inclusive, must:

     (a) Contain a short and plain written statement of the claim showing that the complainant is entitled to relief;

     (b) Include the facts, statutes, regulations, orders and tariffs that support each claim for relief in the complaint;

     (c) Specify the relief requested, including any interim relief being requested;

     (d) Include a certificate of service, made under penalty of perjury, that sets forth the method of service on the respondent and the Bureau of Consumer Protection in the Office of the Attorney General, in accordance with NAC 703.610 via same-day or overnight delivery, with a copy sent by electronic mail; and

     (e) Include a summary of the complaint, in 25 words or less, suitable for publication by the Commission.

     2.  A complainant must file the original with the Commission. Upon the filing of a complaint, the Commission will designate a docket number for the administrative proceedings on the complaint and assign a presiding Commissioner for those administrative proceedings.

     3.  Not later than 3 business days after the date on which a complaint is filed with the Commission, the parties to the complaint shall execute a protective agreement regarding discovery.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R107-07, 12-4-2007; R136-07, 1-30-2008)

      NAC 704.680357  Answer. (NRS 703.025, 704.210, 704.6882)

     1.  A respondent to a complaint must serve its answer to the complaint within 7 calendar days after the date on which the complaint is filed with the Commission pursuant to NAC 704.680353.

     2.  In its answer, a respondent shall:

     (a) State, in short and concise terms, its defenses to each claim asserted;

     (b) Admit or deny the facts alleged in the complaint;

     (c) State which allegations, if any, the respondent is without knowledge or information sufficient to form a belief as to the truth of the allegations; and

     (d) Set forth any facts and law that constitute an affirmative defense.

     3.  The Commission will consider an unexcused failure of a respondent to file an answer to a complaint within the time prescribed by this section to be an admission by the respondent to all relevant facts stated in the complaint.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680359  Mediation. (NRS 703.025, 704.210, 704.6882)

     1.  Upon the filing of a complaint pursuant to NAC 704.680353, the complaint must be submitted to mediation. Except for the filing of an answer and the filing of any requests for interim relief under NAC 704.680365, the Commission will suspend action on a complaint pending mediation. Except as otherwise provided in this subsection, the Director of Regulatory Operations within the Commission shall preside over the mediation of a complaint pursuant to thi