Nev. Admin. Code § 704.Sec. 13 - NEW

1. Until the rate-effective period for the separate rates established after an electric utility filed its initial request pursuant to subsection 4 of section 12 of LCB File No. R085-19, the electric utility may, upon placing into operation a new capital project constructed or acquired by and owned by the electric utility pursuant to an element of a natural disaster protection plan that is incremental to the normal course of business of the electric utility, create a regulatory asset or liability account for the capital project.

2. Beginning 1 month after the date on which a new capital project for which a regulatory asset or liability account is created pursuant to subsection 1 is placed into plant in service, the electric utility that maintains the account shall separately calculate and record in the account:

(a) A return on investment for the capital project using the most recently authorized pretax rate of return on the net plant balance of the capital project. The net plant balance of the capital project must be calculated by subtracting from the costs of the capital project the sum of the accumulated depreciation and the accumulated deferred income tax for the capital project.

(b) Depreciation expenses related to capital projects included in the natural disaster protection plan pursuant to paragraph (c) of subsection 2 of NRS 704.7983.

(c) Actual incremental or decremental monthly operations and maintenance costs, in comparison to the costs incurred by the electric utility in the normal course of business, that are incurred to carry out the natural disaster protection plan.

(d) Except as otherwise provided in this paragraph, carrying charges on the costs described in paragraph (c) at the most recently authorized rate of return, excluding the equity component of such authorized rate of return. The electric utility shall cease recording carrying charges pursuant to this paragraph upon the beginning of the rate-effective period for the separate rates established after the electric utility filed its initial request pursuant to subsection 4 of section 12 of LCB File No. R085-19.

3. The amounts recorded in a regulatory asset or liability account pursuant to subsection 2 must be separately identified until included in a rate established pursuant to section 12 of LCB File No. R085-19. Once costs have been transferred from the regulatory asset or liability account into rates, the electric utility shall cease recording the amounts described in subsection 2 in the regulatory asset or liability account.

4. An electric utility shall include in each application submitted to the Commission pursuant to section 12 of LCB File No. R085-19 a request to clear the accumulated balance in a regulatory asset or liability account created pursuant to subsection 1 and include the account in the request. The request must include:

(a) A proposed period for recovery and amortization of the regulatory asset or liability that ensures that the utility does not recover more than the actual accumulated balance of the account;

(b) A detailed reconciliation of the amount of recovery requested to the approved budget items, showing carrying charges separately;

(c) The projected impact of the recovery requested on the amounts billed to customers; and

(d) Proposed rate design and rates by customer class as a separate line item on a customer's bill.

Notes

Nev. Admin. Code § 704.Sec. 13

Added to NAC by Bd. of Exam'rs for Marriage & Fam. Therapists by R085-19A, eff. 2/20/2020; A by R181-24A, eff. 11/15/2024

NRS 703.025, 704.210, 704.7983