Nev. Admin. Code § 704.518 - Rates and charges: Schedule; contract for special services; customer subject to schedule or contract; establishment by utility; exemption from certain provisions
Current through March 28, 2022
1. A utility which
transports natural gas may file for approval by the Commission a schedule to be
applied to transportation customers served by the utility. The schedule may
authorize the utility and a transportation customer to enter into a discounted
rate contract. The schedule:
(a) Must set
forth the terms and conditions of service including, without limitation, the
following terms governing any discounted rate contract between the utility and
a transportation customer:
(1) That the
utility and transportation customer shall jointly file a discounted rate
contract with the Commission at least 60 days prior to the customer taking
service from the utility pursuant to the discounted rate contract;
(2) That the discounted rate contract will be
limited to an initial term of not more than 10 years and must not include any
contract provision that permits the discounted rate contract to be renewed or
otherwise extended beyond the initial term without first filing and obtaining
Commission approval of a new discounted rate contract pursuant to this section
and section 4;
(3) That the
discounted rate contract must conform to the rate design and discount terms as
specified in the schedule in accordance with paragraphs (b) to (g), inclusive,
of this subsection; and
(4) That
the discounted rate contract must include a provision that permits the
Commission to assess additional charges on the transportation customer at any
time during the contract term as determined in an appropriate proceeding before
the Commission.
(b) May
include different rates for customers within the same class upon a showing to
the Commission that the different rates are justified.
(c) Must specify the rate design applicable
to transportation customers taking service pursuant to a discounted rate
contract.
(d) Must explicitly state
which volumetric or demand components of a transportation customer's rates are
to be discounted, the criteria to determine whether a customer is eligible for
the discounts and the range of discounts that may be offered to the volumetric
or demand components of the rate.
(e) Must not permit any discounts to the
fixed components of a transportation customer's rates.
(f) Must require that the discounts included
in any rate provided for by a discounted rate contract are supported by the
utility's most recent Commission-approved class cost of service study or other
evidence sufficient to demonstrate that the transportation customer will pay at
least its incremental costs of service, thereby ensuring that the discounted
rates recover at least the incremental costs that the utility will incur in
serving the transportation customer such that there is no net cost to other
customers of the utility.
(g) Must
require that the discounted rate contract contain a provision for an annual
inflation adjustment.
2.
A utility may provide service to a transportation customer pursuant to a
schedule filed pursuant to subsection 1 if the customer notifies the utility in
writing that the customer wishes to be billed pursuant to the schedule and the
customer and the utility jointly file, in a new Commission docket, with notice
provided in the new docket opened annually pursuant to section 2 of this
regulation, evidence demonstrating that the customer can bypass the facilities
of the utility which transports natural gas using a bona fide alternative and
that bypass of the facilities of the utility is:
(a) Physically feasible and imminent based
upon evidence demonstrating the ability of the customer or its agent to
construct physical infrastructure for natural gas service from a bona fide
alternative within a reasonable amount of time;
(b) Economically feasible based upon evidence
demonstrating that taking service from a bona fide alternative would be more
economical than taking service from the utility during the proposed contractual
period, taking into account all of the costs of constructing or using physical
infrastructure other than that of the utility; and
(c) Operationally feasible and imminent based
upon evidence demonstrating that each transportation customer or its agent is
operationally capable of constructing and operating natural gas facilities.
The transportation customer must provide the foregoing evidence to the utility before the utility and the transportation customer jointly file any application for approval of a discounted rate contract pursuant to section 4.
3. If a utility which seeks to transport
natural gas for a transportation 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 a transportation
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 a transportation customer, the
utility shall file with the Commission an application for the approval of a
contract for special services between the utility and the transportation
customer. A contract for special services must specify the method, terms,
conditions and rates by which the services are to be rendered to the
transportation customer. A utility shall not provide service to a
transportation customer pursuant to a contract for special services until the
contract is approved by the Commission.
4. A utility may provide service to a
transportation customer pursuant to a contract for special services, which
shall be supported with cost estimates, studies and other documentary evidence
when the contract for special services is filed with the Commission, 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 and the utility have demonstrated to the Commission that the customer
can bypass the facilities of the utility which transports natural gas using a
bona fide alternative and that bypass of the facilities of the utility is:
(a) Physically feasible and imminent based
upon evidence demonstrating the ability of the customer or its agent to
construct physical infrastructure for natural gas service from a bona fide
alternative within a reasonable amount of time;
(b) Economically feasible based upon evidence
demonstrating that taking service from a bona fide alternative would be more
economical than taking service from the utility during the proposed contractual
period, taking into account all of the costs of constructing or using physical
infrastructure other than that of the utility; and
(c) Operationally feasible and imminent based
upon evidence demonstrating that each transportation customer or its agent is
operationally capable of constructing and operating natural gas facilities.
The transportation customer must provide the foregoing evidence to the utility before the utility and the transportation customer jointly file the application for approval of a contract for special services pursuant to subsection 3.
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 transports
natural gas after consultation with each affected customer.
Notes
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