AB 449 — Revises provisions governing public utilities. (BDR 58-888)

(ReprintedAssembly withBill amendmentsNo. adopted on April 21, 2025) FIRST REPRINT A.B.

449449–Assemblymember ASSEMBLYGurr BILLNCHAPTER.......... O .

449–ASSEMBLYMEMBER G URR M ARCH 17, 2025 ____________ Referred to Committee on Growth and Infrastructure SUMMARY—Revises provisions governing public utilities.

(BDR 58-888) 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.

Existing law requires the Public Utilities Commission of Nevada to adopt regulations which provide simplified procedures or methodologies for a change of rates for those public utilities which furnish water or services for the disposal of sewage, or both, and which:

and (2) had during the immediately preceding 12-month period gross sales for water or services for the disposal of letterssewage ofamounting advice to change$4,000,000 ratesor basedless. on an approved nationally recognizeding of inflation index, section 1 requires those regulations to provide for the filing of letters of advice to change fees, as authorized by the Commission, based on such an index.

-In *AB449_R1*addition –to 2providing –for Existingthe lawfiling generallyof requiresinflation aindex, publicsection utility1 torequires submitthose anregulations applicationto andprovide obtainfor the approvalfiling of theletters Commissionof foradvice ato change infees, anyas scheduleauthorized ofby ratesthe orCommission, services.based on such an index.

(NRSExisting 704.110) However, existing law authorizesgenerally requires a public utility to submit otheran criteria,application theand proposedobtain changethe doesapproval notof changethe anyCommission ratefor ora willchange result in anany increaseschedule inof annualrates grossor operatingservices. revenue in an amount that does not exceed $15,000.

Existing(NRS law704.110) additionallyHowever, setsexisting forthlaw variousauthorizes requirementsa forpublic theutility submissionto ofsubmit a letter of advice in lieu of filing an application bywith athe small-scaleCommission providerif, ofamong lastother resort.criteria, the proposed change does not change any rate or will result in an $15,000.

(NRSExisting 704.100)law Sectionadditionally 2sets offorth thisvarious billrequirements authorizesfor atheed publicsubmission utilityof othera changeletter doesof notadvice changein anylieu rateof or will result in an increaseapplication inby annuala grossesmall-scale proposedprovider operatingof revenuelast inresort. an amount that does not exceed $100,000.

(NRS 704.100) Section 2 of this bill authorizes a public utility other than a small-scale provider of last resort to submit a letter of advice if the proposed change does not change any rate or will result in an increase in annual gross operating revenue in an amount that does not exceed $100,000.

- 83rd Session (2025) – 2 – EXPLANATION – Matter in bolded italics is new;

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

If a public utility furnishes both water and services for the disposal of sewage, its gross sales for each service must be considered separately for determining whether the public utility qualifies under this paragraph for either service.

or - *AB449_R1* – 3 – (2) Files the proposed changes with the Commission using a letter of advice in accordance with the provisions of paragraph (f) or (g).

(b) A public utility shall adjust its rates on a quarterly basis between annual rate adjustment applications pursuant to subsection 8costs of natural gas purchased for resale.ublic utility’s recorded (c) An electric utility shall, between annual deferred energy accounting adjustment applications filed pursuant to NRS 704.110704.187, based- 83rd Session (2025) – 3 – NRS 704.110.ates on changesa inquarterly thebasis pursuant to subsection 10 of (d) A public utility’sutility recordedshall costspost copies of naturalall gasproposed purchasedschedules 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 resale.the posting of copies of schedules that are currently in force.

(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.

(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.

(f) Except [as otherwise provided in paragraph (g),] for a public utility that is a small-scale provider of last resort, if the proposed change in any schedule does not change any rate or will result in an increasenot inexceed annual[$15,000:] gross$100,000:ing operating revenue in an amount that does not(1) exceedThe [$15,000:]public $100,000:utility may file the proposed change with the Commission using a letter of advice in lieu of filing an application;

(1) The public utility may file the proposed change with the Commission using a letter of advice in lieu of filing an application;

(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$50,000ual - *AB449_R1* – 4 – 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 that- to83rd theSession best(2025) of– the4 signatory’s– knowledge, information and belief, formed after a reasonable inquiry, the proposed change in schedulescheduleief, 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;

 Not later than 10 business days after the filing of a letter of advice pursuant to subparagraph (1), the Regulatory Operations Staff of the Commission or any other interested party may file with the Commission a request that the Commission order an applicant to file a general rate application in accordance with subsection 3 of NRS 704.110.

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 thetheized by Commission to grant the request for a waiver.

The Commission shall not approve a request for a waiver if the request is submitted - *AB449_R1* – 5 – later than 7 years after the issuance by the Commission of a final order on a general rate application filed by the applicant in accordance with subsection 3 of NRS 704.110.

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 120- 83rd Session (2025) – 5 – 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.

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