AB 154 — Revises provisions governing certain notice provided by public utilities. (BDR 58-510)

(ReprintedAssembly withBill amendmentsNo. adopted on April 15, 2021) FIRST REPRINT A.B.

154154–Assemblymen ASSEMBLYRoberts, BTolles, ILLNNguyen, O.Watts;

154–Aand SSEMBLYMENMonroe-Moreno RJoint OBERTSSponsor: , TOLLES, N GUYEN , WATTS ;AND M ONROE -M ORENO FEBRUARY 18, 2021 ____________ JOINT S PONSOR :

ENATORSenator HAMMONDHammond ____________CHAPTER.......... Referred to Committee on Growth and Infrastructure SUMMARY—Revises provisions governing certain notice provided by public utilities.

(BDR 58-510) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

(NRS 704.143-704.1835) Section 1 of this bill authorizes a public utility to provide by electronic transmission any notice that is required to be provided to a customer if the customer requests such transmission and it is within the capability of the public utility to provide the notice electronically.

Section 2 of this bill authorizes a public utility to provide notice of each quarterly rate adjustment to its customers electronically pursuant to section 1 instead of with the customer’s regular monthly bill as required under existing law.

Existing law also requires the quarterly rate of adjustment to be printed on fluorescent colored paper separately from the customer’s bill and prescribes the contents of the quarterly rate of adjustment.

(1) removes the requirement that the quarterly (2) provides that if the quarterly rate of adjustment beis printedprovided onelectronically, fluorescentthe coloredsubject paperline separatelyof fromthe electronic transmission must indicate that such an adjustment is included in the bill;transmission;

(2) provides that if the quarterly rate of adjustment is provided electronically, the subject line of the electronic transmission must indicate that such an adjustment is included in the transmission;

-EXPLANATION *AB154_R1* – 2Matter –in THEbolded PEOPLEitalics OFis THEnew; STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sectionmatter 1.between brackets [omitted material] is material to be omitted.

THE SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:D IN Section 1.

704.110 Except as otherwise provided in NRS 704.075, 704.68861 to 704.68887, inclusive, and 704.7865, or as may otherwise- be81st providedSession by(2021) the– Commission2 pursuant– to NRS 704.095, 704.097 or 704.7621:704.7621:Commission pursuant to NRS 1.

1.

application, the public utility shall submit with its application aae statement showing the recorded results of revenues, expenses, investments and costs of capital for its most recent 12 months for which data were available when the application was prepared.

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 12 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 - *AB154_R1* – 3 – 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 thethend Commission has approved the increased rates.

Within 90 days after the date on which the certification required by this subsection is filed with the- Commission,81st orSession within(2021) the– period3 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.

and (2) Once every 36 months thereafter or on a date specified in anpursuant alternativeto rate-makingNRS 704.7621.g plan approved by the Commission (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 NRSstandards 704.7621.adopted by regulation of the Commission.

(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 by regulation of the Commission.

- *AB154_R1* – 4 – (d) 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 moremoreoth, 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 determining- whether81st theSession public(2021) – 4 – paragraph for either service.c utility meets the requirements of this paragraph The Commission shall adopt regulations setting forth standards for eitherwaivers service.pursuant to paragraphs (c) and (d) and for including the costs incurred by the public utility in preparing and presenting the general rate application before the effective date of any change in rates.

 The Commission shall adopt regulations setting forth standards for waivers pursuant to paragraphs (c) and (d) and for including the costs incurred by the public utility in preparing and presenting the general rate application before the effective date of any change in rates.

If a public utility submits such a statement, the public utility has the burden of proving that the reasonably known and are measurable with reasonable accuracy.are The Commission shall consider expected changes in circumstances setto forthbe 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 statementdegree, arein reasonablythe knownamount and at the time expected, are primarily measurable by recorded or verifiable revenues and expenses and are easily and objectively calculated, with reasonablethe accuracy.calculation of the expected changes relying only secondarily on estimates, forecasts, projections or budgets.

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 - *AB154_R1* – 5 – expected changes in circumstances under consideration, in additionadditionthe to the statement required pursuant to subsection 3 as evidence in establishing just and reasonable rates for the public utility;

If a public utility files with the Commission an application to make changes in any schedule and the Commission does not issue a final written order regarding the proposed changes within the time required- by81st thisSession section,(2021) – 5 – approved by the Commission.he proposed changes shall be deemed to be approved6. by the Commission.

6.

The provisions of this subsection do not prohibit the public utility from filing with the Commission, while a general rate application is pending, an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale pursuant to subsection 7, a quarterly rate adjustment pursuant to subsection 8 or 10, any information relating to deferred accounting requirements pursuant to NRS 704.185 or an annual deferred energy accounting adjustment application pursuant to NRS 704.187,those ifprovisions.ublic the public utility is otherwise authorized to so file by those7. provisions.

7.

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 adjustments to its deferred energy accounting adjustment.

The Commission shall approve or deny such a request not later than 120 - *AB154_R1* – 6 – days after the application is filed with the Commission.

If the Commission approves a request to make quarterly adjustments to the deferred energy accounting adjustment of a public utility pursuant to this subsection, any quarterly adjustment to the deferred energy accounting adjustment must not exceed 2.5 cents per therm of - 81st Session (2021) – 6 – varies by less than 5 percent from the public utility’s annualccount recorded costs of natural gas which are used to calculate quarterly rate adjustments, the deferred energy accounting adjustment must be set to zero cents per therm of natural gas.

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 rate adjustments, the deferred energy accounting adjustment must be set to zero cents per therm of natural gas.