SB 300 — Revises provisions governing the rates charged by electric utilities. (BDR 58-302)

As used in sections 5 to 18, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 6 to 15, inclusive, of this act have the meanings ascribed to them in those sections.

Sec.

- *SB300_R2* – 6 – Sec.

“Multi-year rate plan” means a rate mechanism under which the Commission sets rates and revenue requirements 80th Session (2019) – 6 – for a multi-year plan period of more than 36 months, including, without limitation, a plan which authorizes periodic changes in rates, including, without limitation, adjustments to accounts for inflation or capital investments, without a general rate application.

may1. be included in such a plan and any limitations on suchat alternative rate-making mechanisms as the Commission deems types of alternative rate-making mechanisms that may be used in the concert within the same alternative rate-making plan.

Establish the alternative rate-making mechanisms that may be included in such a plan and any limitations on such alternative rate-making mechanisms as the Commission deems appropriate, including, without limitation, any restrictions on the types of alternative rate-making mechanisms that may be used in concert within the same alternative rate-making plan.

Establish requirements for an electric utility for which the Commission has approved an alternative rate-making plan to keep or cause to be kept any information and records which the utility would have been required to submit to the Commission as part of - *SB300_R2* – 7 – an application pursuant to NRS 704.110 or 704.187, if the filing of any such application is delayed or excused pursuant to the alternative rate-making plan.

80th Session (2019) – 7 – 6.

(c) Enables the delivery of electric service and options for services and pricing that customers value including, without limitation, the development and the use of renewable resources by customers that prioritize such resources above other factors,sfactors, by including price.

operational(d) efficiencyFosters ofstatewide theimprovements electricalto grid.conomic and (e) Furthers the publiceconomic interest including, without limitation, the promotion of safe, economic, efficient and reliableoperational electricefficiency service to all customers of the electricelectrical utility.grid.

(e) Furthers the public interest including, without limitation, the promotion of safe, economic, efficient and reliable electric service to all customers of the electric utility.

-80th *SB300_R2*Session (2019) – 8 – Sec.

session3. pursuant to NRS 704.069 to solicit comments from the public before taking action on an application submitted pursuant to 4.bsThe Commission shall not approve an application submitted pursuant to subsection 1 unless the Commission determines that the plan:

The Commission shall conduct at least one consumer session pursuant to NRS 704.069 to solicit comments from the public before taking action on an application submitted pursuant to subsection 1.

4.

The Commission shall not approve an application submitted pursuant to subsection 1 unless the Commission determines that the plan:

80th Session (2019) – 9 – (a) An earnings-sharing mechanism that balances the interests of customers that purchase electricity for consumption in this State and the shareholders of the electric utility.

- *SB300_R2* – 9 – (b) A term or condition waiving the requirement that the electric utility file a general rate application every 36 months pursuant to subsection 3 of NRS 704.110 or extending beyond 36 months the time between required general rate application filings.

704.100Sec. 1.RS 7Except as otherwise provided in NRS 704.075:

and19. 704.68861 to 704.68887, inclusive, or as may otherwise be 704.097 [:] or section 17 of this act:

NRS 704.095704.100 ,is [or]hereby (a)amended Ato publicread utilityas shallfollows: not make changes in any schedule, unless the public utility:

704.100 1.

Except as otherwise provided in NRS 704.075 and 704.68861 to 704.68887, inclusive, or as may otherwise be provided by the Commission pursuant to NRS 704.095 , [or] 704.097 [:] or section 17 of this act:

(a) A public utility shall not make changes in any schedule, unless the public utility:

(b) A public utility shall adjust its rates on a quarterly basis between annual rate adjustment applications pursuant to subsection 8 of NRS 704.110 based on changes in the public utility’s recorded costs of natural gas purchased for resale.

80th Session (2019) – 10 – (c) An electric utility shall, between annual deferred energy accounting adjustment applications filed pursuant to NRS 704.187, adjust its rates on a quarterly basis pursuant to subsection 10 of NRS 704.110.

- *SB300_R2* – 10 – (d) A public utility shall post copies of all proposed schedules and all new or amended schedules in the same offices and in substantially the same form, manner and places as required by NRS 704.070 for the posting of copies of schedules that are currently in force.

 A letter of advice filed pursuant to this paragraph must include a certification by the attorney for the public utility or an affidavit by an authorized representative of the public utility that to the best of the signatory’s knowledge, information and belief, formed after asta of reasonable inquiry, the proposed change in schedule does not revenue of the public utility in an amount that exceeds $15,000.rating (g) If the applicant is a small-scale provider of last resort and the proposed change in any schedulerate willor result in an increase in the annual gross operating revenue in an amount that does not exceed $50,000 or 10 percent of the applicant’spublic annualutility grossin operatingan revenue,amount whicheverthat isexceeds less:$15,000.

(g) If the applicant is a small-scale provider of last resort and the proposed change in any schedule will result in an increase in annual gross operating revenue in an amount that does not exceed $50,000 or 10 percent of the applicant’s annual gross operating revenue, whichever is less:

(I) Includes with the letter of advice a certification by the attorney for the small-scale provider of last resort or an affidavit by an authorized representative of the small-scale provider of last resort 80th Session (2019) – 11 – that to the best of the signatory’s knowledge, information and belief, formed after a reasonable inquiry, the proposed change in schedule does not change any rate or result in an increase in the annual gross operating revenue of the small-scale provider of last resort in an amount that exceeds $50,000 or 10 percent, whichever is less;

- *SB300_R2* – 11 – (II) Demonstrates that the proposed change in schedule is required by or directly related to a regulation or order of the Federal Communications Commission;

An applicant that is a small-scale provider of last resort may submit to the Commission a written request for a waiver of the 5-year period specified in sub-subparagraph (III) of subparagraph (1) of paragraph (g) of subsection 1.

The Commission shall, not later than 90 days after receipt of such a request, issue an order approving theor applicantdenying provides proof satisfactory to the Commissionrequest. that the applicant is not earning more than the rate of return authorized by the Commission and that it is in the public interest for the Commission to grant the request for a waiver.

The Commission may approve the request if the applicant provides proof satisfactory to the Commission that the applicant is not earning more than the rate of return authorized by the Commission and that it is in the public interest for the Commission to grant the request for a waiver.

If the Commission approves a request for a waiver submitted pursuant to this subsection, the applicant shall file the letter of advice pursuant to subparagraph (1) of paragraph (g) of subsection 1 not earlier than 12080th Session (2019) – 12 – days after the date on which the applicant submitted the request for a waiver pursuant to this subsection, unless the order issued by the Commission approving the request for a waiver specifies a different period for the filing of the letter of advice.

- *SB300_R2* – 12 – Sec.

If a public utility files with the Commission a general rate application, the public utility shall submit with its application a statement showing the recorded results of revenues, expenses, whichinvestments dataand werecosts available when the application was prepared.hs for Except as otherwise provided in subsection 4, in determining Commission shall consider evidence in support of thecapital increased rates based upon actual recorded results of operations for theits samemost recent 12 months,months adjusted for increased revenues, any increased investment in facilities, increased expenses for depreciation, certain other operating expenses as approved by the Commission and changes in the costs of securities which aredata knownwere andavailable arewhen measurable with reasonable accuracy at the timeapplication ofwas filingprepared. and which will become effective within 6 months after the last month of those 12 months, but the public utility shall not place into effect any increased rates until the changes have been experienced and certified by the public utility to the Commission and the Commission has approved the increased rates.

Except as otherwise provided in subsection 4, in determining whether to approve or disapprove any increased rates, the Commission shall consider evidence in support of the increased rates based upon actual recorded results of operations for the same months, adjusted for increased revenues, any increased investment in facilities, increased expenses for depreciation, certain other operating expenses as approved by the Commission and changes in the costs of securities which are known and are measurable with reasonable accuracy at the time of filing and which will become effective within 6 months after the last month of those months, but the public utility shall not place into effect any increased rates until the changes have been experienced and 80th Session (2019) – 13 – certified by the public utility to the Commission and the Commission has approved the increased rates.

Within 90 days after the date - *SB300_R2* – 13 – on which the certification required by this subsection is filed with the Commission, or within the period set forth in subsection 2, whichever time is longer, the Commission shall make such order in reference to the increased rates as is required by this chapter.

(c) A public utility that furnishes water for municipal, industrial or domestic purposes or services for the disposal of sewage, or both, which had an annual gross operating revenue of $2,000,000 or more for at least 1 year during the immediately preceding 3 years and which had not filed a general rate application with the Commission on or after July 1, 2005, shall file a general rate application on or before June 30, 2008, and at least once every 36 months thereafter unless waived by the Commission pursuant to standards adopted byerby regulation of the Commission.

(d) A public utility that furnishes water for municipal, industrial or domestic purposes or services for the disposal of sewage, or both, 80th Session (2019) – 14 – which had an annual gross operating revenue of $2,000,000 or more for at least 1 year during the immediately preceding 3 years and which had filed a general rate application with the Commission on or after July 1, 2005, shall file a general rate application on or before June 30, 2009, and at least once every 36 months thereafter unless waived by the Commission pursuant to standards adopted by regulation of the Commission.

If a public utility furnishes both water and services for the disposal of sewage, its annual gross operating revenue for each service must be considered separately for - *SB300_R2* – 14 – determining whether the public utility meets the requirements of this paragraph for either service.

The Commission shall consider expected changes in circumstances to be reasonably known and measurable with reasonable accuracy if the expected changes in circumstances consist of specific and identifiable events or programs rather than general trends, patterns or developments, have an objectively high probability of occurring to the degree, in the amount and at the time expected, are primarily measurable by recorded or verifiable revenues and expenses and are easily and objectively calculated, with the calculation of the expected changes relying only secondarily on estimates, forecasts, projections or budgets.

(a) The Commission shall consider the statement submitted pursuant to this subsection and evidence relevant to the statement, including all reasonable projected or forecasted offsets in revenue and expenses that are directly attributable to or associated with the 80th Session (2019) – 15 – expected changes in circumstances under consideration, in addition to the statement required pursuant to subsection 3 as evidence in establishing just and reasonable rates for the public utility;

- *SB300_R2* – 15 – 6.

or (b) A public utility which purchases natural gas for resale and which adjusts its rates on a quarterly basis pursuant to subsection 8.

A public utility which purchases natural gas for resale must request approval from the Commission to adjust its rates on a quarterly basis between annual rate adjustment applications based on changes in the public utility’s recorded costs of natural gas purchased for resale.

A public utility which purchases natural gas for resale and which adjusts its rates on a quarterly basis may request approval from the Commission to make quarterly 80th Session (2019) – 16 – adjustments to its deferred energy accounting adjustment.

If the balance of the public utility’s deferred account varies by less than 5 percent from the public utility’s annual recorded costs of natural gas which are used to calculate quarterly - *SB300_R2* – 16 – rate adjustments, the deferred energy accounting adjustment must be set to zero cents per therm of natural gas.

(I) The total amount of the increase or decrease in the public utility’s revenues from the rate adjustment, stated in dollars and as a (II)percentage; The amount of the monthly increase or decrease in charges for each class of customer or class of service, stated in dollars a(III) A statement that customers may send written comments or protests regarding the rate adjustment to the Commission;

(IV)(II) AThe statementamount thatof the transactionsmonthly andincrease recordedor costsdecrease ofin naturalcharges gas which are the basis for anyeach quarterlyclass rateof adjustmentcustomer willor beclass reviewedof forservice, reasonablenessstated and prudence in thedollars nextand proceedingas helda bypercentage; the Commission to review the annual rate adjustment application pursuant to paragraph (d);

(III) A statement that customers may send written comments or protests regarding the rate adjustment to the Commission;

80th Session (2019) – 17 – (IV) A statement that the transactions and recorded costs of natural gas which are the basis for any quarterly rate adjustment will be reviewed for reasonableness and prudence in the next proceeding held by the Commission to review the annual rate adjustment application pursuant to paragraph (d);

- *SB300_R2* – 17 – There is no presumption of reasonableness or prudence for any quarterly rate adjustment or for any transactions or recorded costs of natural gas included in any quarterly rate adjustment or the annual rate adjustment application, and the public utility has the burden of proving reasonableness and prudence in the proceeding.

If the Commission approves a request to make quarterly electricadjustments utility pursuant to this subsection, any quarterly adjustment to the deferred energy accounting adjustment mustof notan exceed 0.25 utility’s deferred account varies by less than 5 percent from thectric electric utility’sutility annualpursuant recordedto coststhis forsubsection, purchasedany fuelquarterly oradjustment purchased power which are used to calculate quarterly rate adjustments, the deferred energy accounting adjustment must benot setexceed to0.25 zero cents per kilowatt-hour of electricity.

If the balance of the electric utility’s deferred account varies by less than 5 percent from the 80th Session (2019) – 18 – electric utility’s annual recorded costs for purchased fuel or purchased power which are used to calculate quarterly rate adjustments, the deferred energy accounting adjustment must be set to zero cents per kilowatt-hour of electricity.

A quarterly rate adjustment is not subject to the - *SB300_R2* – 18 – requirements for notice and a hearing pursuant to NRS 703.320 or the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.

(IV) A statement that the transactions and recorded costs of purchased fuel or purchased power which are the basis for any quarterly rate adjustment will be reviewed for reasonableness and prudence in the next proceeding held by the Commission to review 80th Session (2019) – 19 – the annual deferred energy accounting adjustment application pursuant to paragraph (d);

andountingand adjustment application (V) Any other information required by the Commission.

There is no presumption of reasonableness or prudence for any quarterly rate adjustment or for any transactions or recorded costs of purchased fuel and purchased power included in any quarterly rate adjustment or the annual deferred energy accounting - *SB300_R2* – 19 – adjustment application, and the electric utility has the burden of proving reasonableness and prudence in the proceeding.

A utility facility identified in a 3-year plan submitted pursuant to NRS 704.741 and accepted by the Commission for acquisition or construction pursuant to NRS 704.751 and the regulations adopted pursuant thereto, or the retirement oreor 80th Session (2019) – 20 – elimination of a utility facility identified in an emissions reduction and capacity replacement plan submitted pursuant to NRS 704.7316 and accepted by the Commission for retirement or elimination7316elimination pursuant to NRS 704.751 and the regulations adopted pursuant thereto, shall be deemed to be a prudent investment.

and - *SB300_R2* – 20 – (b) Authorize a utility to implement a reduced rate for low- income residential customers.

(a) “Deferred energy accounting adjustment” means the rate of a public utility which purchases natural gas for resale or an electric utility that is calculated by dividing the balance of a deferred account during a specified period by the total therms or kilowatt- hours which have been sold in the geographical area to which the rat(b)rate “Electricapplies utility”during has the meaningspecified ascribedperiod. to it in NRS 704.187.

counties”80th meansSession an(2019) electric– utility21 that,– with(b) regard“Electric toutility” has the provisionmeaning ofascribed electricto service, derives more of its annual gross operating revenue in this State from customers located in counties whose population is 700,000 or more than it does from customers located in countiesNRS whose704.187. population is less than 700,000.

(c) “Electric utility that primarily serves densely populated counties” means an electric utility that, with regard to the provision of electric service, derives more of its annual gross operating revenue in this State from customers located in counties whose population is 700,000 or more than it does from customers located in counties whose population is less than 700,000.

Two or more utilities that are affiliated through common ownership and that have an - *SB300_R2* – 21 – interconnected system for the transmission of electricity shall submit a joint plan.

80th Session (2019) – 22 – (c) A comparison of a diverse set of scenarios of the best combination of sources of supply to meet the demands or the best methods to reduce the demands, which must include at least one scenario of low carbon intensity that includes the deployment of distributed generation.

(d) An analysis of the effects of the requirements of NRS 704.766 to [704.777,] 704.776, inclusive, on the reliability of the distribution system of the utility or utilities and the costs to the utility or utilities to provide electric service to all customers.

- *SB300_R2* – 22 – (a) Evaluate the locational benefits and costs of distributed resources.

(e) Identify barriers to the deployment of distributed resources, including, without limitation, safety standards related to technology 80th Session (2019) – 23 – or operation of the distribution system in a manner that ensures reliable service.

emitted(a) per“Carbon unitintensity” ofmeans energythe consumed.amountamount of carbon by weight (b)emitted “Distributedper generationunit system”of has the meaning ascribed to it (c) “Distributed resources” means distributed generation systems, energy efficiency,consumed. energy storage, electric vehicles and demand-response technologies.

(b) “Distributed generation system” has the meaning ascribed to it in NRS 701.380.

(c) “Distributed resources” means distributed generation systems, energy efficiency, energy storage, electric vehicles and demand-response technologies.

- *SB300_R2* – 23 – Sec.

80th Session (2019) – 24 – (b) May, at its own expense and with the written consent of the customer-generator, install one or more additional meters to monitor the flow of electricity in each direction.

(c) Except as otherwise provided in subsection 7, shall not charge the customer-generator any fee or charge that is different than that charged to other customers of the utility in the rate class to which the customer-generator would belong if the customer- gen(d)generator Shalldid not reducehave the minimum monthly charge of the customer-generator based on the electricity generated by the cus3.merIf the net metering system of a customer-generator who accepts the offer of a utility for net metering hassystem. a capacity of more than 25 kilowatts, the utility:

(d) Shall not reduce the minimum monthly charge of the customer-generator based on the electricity generated by the customer-generator and fed back to the utility.

3.

If the net metering system of a customer-generator who accepts the offer of a utility for net metering has a capacity of more than 25 kilowatts, the utility:

- *SB300_R2* – 24 – (c) Shall not reduce the minimum monthly charge of the customer-generator based on the electricity generated by the customer-generator and fed back to the utility.

80th Session (2019) – 25 – 6.

and (b) The customer-generator sells or transfers his or her interest in the contiguous property,  the net metering system ceases to be eligible to participate in net metering.

metering system ceases to be eligible to participate in net 7.

(a) If applicable, the universal energy charge imposed pursuant to NRS 702.160;

ande,and the universal energy charge imposed pursuant (b) Any charges imposed pursuant to chapter 701B of NRS or NRS 704.7827 or 704.785 which are assessed against other customers in the same rate class as the customer-generator.

and - *SB300_R2* – 25 – (b) Replacing the originally installed net metering system, as needed, at any time before 20 years after the date of the installation of the originally installed net metering system.

and (3) Interconnection, 80th Session (2019) – 26 –  based on the allowable size of the net metering system.

704.776 If the Legislature provides by law for an open, competitive retail electric energy market for all electricity customers within a service territory:

energy market for all electricity customers 1.

Each person providing electric service in that service territory shall be deemed to be a utility for the purposes of NRS 704.766 to [704.777,] 704.776, inclusive;

for the purposes of NRS 2.

- *SB300_R2* – 26 – (a) Uses the electricity that it generates from renewable energy or energy from a qualified recovery process in this State;

80th Session (2019) – 27 – Sec.

-~~~~~ *SB300_R2*19 –80th 27Session –(2019) TEXT OF REPEALED SECTION 704.777 Commission required to open investigatory docket rates;

biennial report to Legislature.ct of net metering on 1.

The Commission shall open an investigatory docket to establish a methodology to determine the impact, if any, of net metering pursuant to NRS 704.766 to 704.777, inclusive, on rates charged by a utility to its customers in this State.

2.

On or before June 30, 2020, and biennially thereafter, the Commission shall submit to the Director of the Legislative Counsel Bureau for transmittal to the next regular session of the Legislature a report concerning the impact of net metering pursuant to NRS 704.766 to 704.777, inclusive, on rates charged by a utility to its customers in this State.

The report must contain:

1, calculations of:

methodology established pursuant to subsection (1) Whether net metering pursuant to NRS 704.766 to 704.777, inclusive, has an impact on rates charged by a utility to its customers in this State;

and (2) The amount of any increase or decrease in such rates as a result of net metering pursuant to NRS 704.766 to 704.777, inclusive;

(b) An explanation of the methodology used to make the calculations required by paragraph (a);

(c) The data used to make the calculations required by paragraph (a), including, without limitation, avoided generation capacity, upgrades;ransmission and generation capacity and avoided system (d) A comparison of the impact on rates of net metering pursuant to NRS 704.766 to 704.777, inclusive, and the impact on rates of capital expenditures by the utility;

(e) A description of the process for obtaining input from stakeholders in developing the methodology required by subsection 1;

and (f) A summary of comments on the written report from interested persons.

H - *SB300_R2*