AB 524 — Revises certain provisions governing electric utilities. (BDR 58-985)

The provisions of this subsection do not prohibit [the] a 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, if the public utility is otherwise authorized to so file by those provisions.

A public utility which purchases natural gas for resale must request approval from the Commission to adjust its rates on a - *AB524_R1*82nd Session (2023) – 7 – quarterly basis between annual rate adjustment applications based on changes in the public utility’s recorded costs of natural gasgasd purchased for resale.

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.gas.nting adjustment must be 9.

9.

The public utility shall begin providing such written notice to its customers not later than 30 days after the date on which the public utility files its written notice withrequired theby Commissionthis pursuantparagraph:t to paragraph (a).

The written notice required(1) Must be printed separately, if included with the customer’s regular monthly bill, or the subject line of the electronic transmission must indicate that notice of a quarterly rate adjustment is included, if provided by thiselectronic paragraph:transmission pursuant to NRS 704.188;

(1) Must be printed separately, if included with the customer’s regular monthly bill, or the subject line of the electronic transmission must indicate that notice of a quarterly rate adjustment is included, if provided by electronic transmission pursuant to NRS 704.188;

(I)- The82nd totalSession amount(2023) of– the8 increase– or decrease in the public utility’s revenues from the rate adjustment, stated in dollars and as a percentage;

- *AB524_R1* – 8 – (II) The amount of the monthly increase or decrease in charges for each class of customer or class of service, stated in dollars and as a percentage;

The annual rate adjustment application is subject to the requirements for notice and a hearing pursuant to NRS 703.320 and the requirements for a consumer hearing session pursuant to subsection 1 of NRS 704.069.

(e) The Commission shall not allow the public utility to recover any recorded costs of natural gas which were the result of any practice or transaction that was unreasonable or was undertaken, managed or performed imprudently by the public utility, and the Commission shall order the public utility to adjust its rates if the Commission determines that any recorded costs of natural gasgass if the included in any quarterly rate adjustment or the annual rate adjustment application were not reasonable or prudent.

The Commission shall approve or deny such a- request82nd notSession later(2023) than– 1209 days– after the application is filed with the Commission.

The Commission may approve the request if thetheled with Commission finds that approval of the request is in the public interest.

If the Commission approves a request to make quarterly adjustments to the deferred energy accounting adjustment of an - *AB524_R1* – 9 – electric utility pursuant to this subsection, any quarterly adjustment to the deferred energy accounting adjustment must not exceed 0.25 cents per kilowatt-hour of electricity.

(a) The electric utility shall file written notice with the Commission on or before August 15, 2007, and every quarter thereafter of the quarterly rate adjustment to be made by the electric utility for the following quarter.

The electric utility shall begin providing such written notice to its customers not later than 30 days after the date on which the electric utility files a written notice with the Commission pursuant to paragraph (a).

(I)- The82nd totalSession amount(2023) of– the10 increase– or decrease in the electric utility’s revenues from the rate adjustment, stated in dollars and as a percentage;

- *AB524_R1* – 10 – (III) A statement that customers may send written comments or protests regarding the rate adjustment to the Commission;

(c) The electric utility shall file an annual deferred energy accounting adjustment application pursuant to NRS 704.187 with the Commission.

(e) The Commission shall not allow the electric utility to recover any recorded costs of purchased fuel and purchased power whichwhichrecover were the result of any practice or transaction that was unreasonable or was undertaken, managed or performed imprudently by the electric utility, and the Commission shall order the electric utility to adjust its rates if the Commission determines that any recorded costs of purchased fuel and purchased power included in any quarterly rate adjustment or the annual deferred energy accounting adjustment application were not reasonable or prudent.

12.- 82nd Session (2023) – 11 – accounting adjustment application pursuant to subsection 11 and NRS 704.187 while a general rate application is pending, the electric utility shall:

If an electric utility files an annual deferred energy accounting adjustment application pursuant to subsection 11 and NRS 704.187 while a general rate application is pending, the electric utility shall:

and - *AB524_R1* – 11 – (b) Supplement its general rate application with the same information, if such information was not submitted with the general rate application.

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 or 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 elimination pursuant to NRS 704.751 and the regulations adopted pursuant thereto, shall be deemed to be a prudent investment.

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

implement a reduced rate for low- 15.

A public utility which purchases natural gas for resale or an electric utility that makes quarterly adjustments to its deferred energy accounting adjustment pursuant to subsection 8 or 10 may submit- to82nd theSession Commission(2023) for– approval12 an– application to discontinue making quarterly adjustments to its deferred energy accountingaccountingtinue adjustment and to subsequently make annual adjustments to its deferred energy accounting adjustment.

- *AB524_R1* – 12 – (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 rate applies during the specified period, not including kilowatt-hours sold pursuant to an expanded solar access program established pursuant to NRS 704.7865.

(b) “Electric utility” has the meaning ascribed to it in NRSNRS(c) 704.187.“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.

(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.

A utility which supplies electricity in this State shall, on or before June 1 of every third year, or more often if necessary, in the manner specified by the Commission, submit a plan to increase its supply of electricity or decrease the demands made on its system by its customers to the Commission.

(1)- Forecast82nd theSession future(2023) demands,– except13 that– a forecast of the future retail electric demands of the utility or utilities must notnote include the amount of energy and capacity proposed pursuant to subsection [5] 6 as annual limits on the total amount of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources through transactions approved by the Commission pursuant to an application submitted pursuant to NRS 704B.310 on or after May 16, 2019;

[and] - *AB524_R1* – 13 – (b) Designate renewable energy zones and revise the designated renewable energy zones as the Commission deems necessary [.] ;

The Commission shall require the utility or utilities to includeinc(a) inAn energy efficiency program for residential customers which reduces the plan:consumption of electricity or any fossil fuel and which includes, without limitation, the use of new solar thermal energy sources.

(a) An energy efficiency program for residential customers which reduces the consumption of electricity or any fossil fuel and which includes, without limitation, the use of new solar thermal energy sources.

and [(3)] (III) If the plan is submitted on or before June 1, 2027, uses sources of supply that result in, by the year 2030, an 80 percent reduction in carbon dioxide emissions from the generation of electricity- to82nd meetSession (2023) – 14 – compared to the demandsamount of customerssuch ofemissions in the utilityyear 2005.y as compared(2) toAt least one scenario that provides for the amountconstruction or acquisition of suchenergy emissionsresources through contract or ownership to be placed into service to close an open position utilizing dedicated energy resources in thethis yearState 2005.and dedicated energy resources delivered through firm transmission.

(2)A Atsignificant leastshare oneof scenario that provides for the constructionrenewable orenergy acquisitionfacilities ofand energy resourcesstorage throughsystems contractincluded or ownership to be placed into service to close an open position utilizing dedicated energy resources in thisthe Statescenario andmust dedicatedbe energyowned resourcesby deliveredthe throughutility. firm transmission.

- *AB524_R1* – 14 – (d) An analysis of the effects of the requirements of NRS 704.766 to 704.776, inclusive, on the reliability of the distribution system of the utility or utilities and the costs to the utility or utilities toinclude providean electricevaluation serviceof tothe allcosts customers.and benefits of addressing issues of reliability through investment in the distribution system.

The analysis must include an evaluation of the costs and benefits of addressing issues of reliability through investment in the distribution system.

(2) The cost of constructing or acquiring, operating and maintaining the energy resource or, if the energy resource is contracted for by the utility, the price of the energy to be supplied by the energy resource;

(1)- The82nd abilitySession of(2023) the– utility15 to– decrease its reliance on market purchases to meet the utility’s open energy loadloadeliance on requirements, including, without limitation, any appropriate reserves, and the forecast of energy needs over the next 10 years;

(4) The ability of the utility to increase access to carbon- free energy, support compliance with the renewable portfolio standard and advance the goals for the reduction of greenhouse - *AB524_R1* – 15 – gas emissions set forth in NRS 445B.380 and 704.7820 through a balanced portfolio of energy supply and demand-side resources;

(5) The ability of the utility to demonstrate to a regional entity that the utility has adequate resources to meet the forecast for energy needs over the next 10 years;

The distributed resourcesres(a) planEvaluate must:the locational benefits and costs of distributed resources.

(a) Evaluate the locational benefits and costs of distributed resources.

(b)- Propose82nd orSession identify(2023) standard– tariffs,16 contracts– or other mechanisms for the deployment of cost-effective distributeddistributedther resources that satisfy the objectives for distribution planning.

[5.]include 6.in the plan a proposal for annual limits on the total amount of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources through transactions approved by the Commission pursuant to an application submitted pursuant to NRS 704B.310 on or after May 16, 2019.

The Commission shall require the utility or utilities to include in the plan a proposal for annual limits on the total amount - *AB524_R1* – 16 – of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources through transactions approved by the Commission pursuant to an application submitted pursuant to NRS 704B.310 on or after May 16, 2019.

(c) Information concerning the infrastructure of the utility or utilitiesresources;that that is available to accommodate market-based new electric resources;(d) Proposals to ensure the stability of rates and the availability and reliability of electric service;

(d) Proposals to ensure the stability of rates and the availability and reliability of electric service;

- 82nd Session (2023) – 17 – [6.] 7.

(a) Was not an end-use customer of the electric utility at any timetim(b) beforeWould Junehave 12,a 2019;peak load of 10 megawatts or more in the service territory of an electric utility within 2 years of initially taking electric service.

and (b) Would have a peak load of 10 megawatts or more in the service territory of an electric utility within 2 years of initially taking electric service.

(e) “Historically“Energy underservedstorage community”system” has the meaning ascribed to it in NRS 704.78343.704.793.

(f) “Low-income“Historically household”underserved community” has the meaning ascribed to it in NRS 704.78347.704.78343.

[(f)] (g) “New“Low-income electrichousehold” resource” has the meaning ascribed to it in NRS 704B.110.704.78347.

-[(g)] *AB524_R1* – 17 – (h) “Provider“New of new electric resources”resource” has the meaning ascribed to it in NRS 704B.130.704B.110.

[(h)] (i) “Renewable“Provider energyof zones”new meanselectric specificresources” geographichas zonesthe wheremeaning renewableascribed energy resources are sufficient to developit generationin capacityNRS and704B.130. where transmission constrains the delivery of electricity from those resources to customers.

(j)zones “Sensitivitywhere analysis”renewable meansenergy aresources setare ofsufficient methodsto ordevelop proceduresgeneration whichcapacity resultsand inwhere atransmission determinationconstrains orthe estimationdelivery of theelectricity sensitivityfrom ofthose aresources result to acustomers. change in given data or a given assumption.

[(j)] (k) “Sensitivity analysis” means a set of methods or procedures which results in a determination or estimation of the sensitivity of a result to a change in given data or a given assumption.

The Commission shall require each utility which supplies electricity in this State, not less than 4 months before filing a plan required pursuant to NRS 704.741, or within a reasonable period before filing an amendment to such a plan [pursuant to NRS 704.751,] in accordance with the regulations adopted by the Commission pursuant to NRS 704.741, to meet with personnel from the Commission and the Bureau of Consumer Protection in the - 82nd Session (2023) – 18 – Office of the Attorney General and any other interested persons to provide an overview of the anticipated filing or amendment.

Each utility which supplies electricity in this State shall, before filing a plan required pursuant to NRS 704.741 or an amendment to such a plan, schedule at least one consumer session to review the plan or amendment and provide an opportunity forforon interested persons to:

The Commission may limit participation of an intervener in the hearing to avoid - *AB524_R1* – 18 – duplication and may prohibit continued participation in the hearing by an intervener if the Commission determines that continued participation will unduly broaden the issues, will not provide additional relevant material evidence or is not necessary to further the public interest.

(b) The plan identifies and takes into account any present and projected reductions in the demand for energy that may result from measures to improve energy efficiency in the industrial, - 82nd Session (2023) – 19 – commercial, residential and energy producing sectors of the area being served.

(c) The plan adequately demonstrates the economic, environmental and other benefits to this State and to the customers ofmeasures theand utilitysources orof utilitiessupply:ociated associated with the following possible measures(1) andImprovements sourcesin ofenergy supply:efficiency;

(1) Improvements in energy efficiency;

 In considering the measures and sources of supply set forth in paragraph (c) of subsection 4 and determining the preference given to such measures and sources of supply, the Commission shall -given *AB524_R1* – 19 – consider the cost of those measures and sources of supply to the customers of the electric utility or utilities.

and (b) Adopt regulations establishing a process for considering such commitments including, without limitation, contracts for the sale- of82nd energy,Session leases(2023) – 20 – letters of credit.ases of land and mineral rights, cash deposits and letters8. of credit.

8.

In considering whether to accept or modify a proposal for annual limits on the total amount of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources through transactions approved by the Commission pursuant to an application submitted pursuant to NRS 704B.310 after May 16, 2019, which is included in the plan pursuant to subsection [5] 6 of NRS 704.741, the Commission shall consider whether the proposed annual limits:

- *AB524_R1* – 20 – 10.

In considering whether to accept or modify a plan to accelerate704.7867, transportationthe electrificationCommission shall consider:n submitted pursuant to NRS 704.7867,(a) Whether the Commissionproposed shallinvestments, consider:incentives, rate designs, systems and programs are reasonably expected to achieve one or more of the following:

(a) Whether the proposed investments, incentives, rate designs, systems and programs are reasonably expected to achieve one or more of the following:

(2)- Improve82nd theSession ability(2023) of– the21 electric– utility to integrate renewable energy resources which generate electricity on ananntegrate intermittent basis into the transmission and distribution grid;

(b) Whether the proposed investments, incentives, rate designs, systems and programs provide electric services and pricing thatthatns, customers value.

and (b)paragraph Within(a).210 210 days for all portions of the plan not described in paragraph (a).If the Commission issues an order modifying the plan, the utility or utilities may consent to or reject some or all of the modifications by filing with the Commission a notice to that effect.

- *AB524_R1* – 21 –  If the Commission issues an order modifying the plan, the utility or utilities may consent to or reject some or all of the modifications by filing with the Commission a notice to that effect.

2.- 82nd Session (2023) – 22 – shall issue an order accepting or modifying the amendment orssion specifying any portions of the amendment it deems to be inadequate:

If a utility files an amendment to a plan, the Commission shall issue an order accepting or modifying the amendment or specifying any portions of the amendment it deems to be inadequate:

Any order issued by the Commission accepting or modifying a plan required pursuant to NRS 704.741 or an amendment to such a plan must include the justification of the Commission for thethech a preferences given pursuant to subsection 5 of NRS 704.746 to the measures and sources of supply set forth in paragraph (c) of subsection 4 of NRS 704.746.

Any order issued by the Commission accepting or modifying an energy efficiency plan or an amendment to such a plan must, if the energy efficiency plan remains cost effective, require that not less than 10 percent of the total expenditures of the utility or utilities on approved energy efficiency and conservation programs in the energy efficiency plan must be specifically directed to energy efficiency measures for - *AB524_R1* – 22 – customers of the utility or utilities in low-income households and residential customers and public schools in historically underserved communities, through both targeted programs and programs directed at residential customers and public schools in general.

- 82nd Session (2023) – 23 – 6.

As used in this subsection, “capacity” means an amount of firm electric generating capacity used by the electric utility or utilities for the purpose of preparing a plan filed with the Commission pursuant to NRS 704.736 to 704.754, inclusive.inclusive.the 8.

8.

This actsection becomes effective onupon Julypassage 1,and 2023.approval.

Section 1 of this act becomes effective on July 1, 2023.

3.

Sections 2 to 8, inclusive, of this act become effective:

(a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act;

and (b) On October 1, 2023, for all other purposes.

4.

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