An electric utility may, upon placing into operation a new capital project
constructed or acquired by and owned by the electric utility pursuant to a
natural disaster protection plan, create a regulatory asset or liability
account for the capital project.
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.
Depreciation expenses related to capital projects that are preventive measures
and programs included in the natural disaster protection plan pursuant to
paragraph (c) of subsection 2 of NRS 704.7983.
(c) Actual incremental monthly operations and
maintenance costs incurred for the capital project to carry out the natural
disaster protection plan.
Carrying charges on the costs described in paragraph (c) at the most recently
authorized rate of return.
3. The amounts recorded in a regulatory asset
or liability account pursuant to subsection 2 must be separately identified and
excluded from a general rate case.
An electric utility shall annually submit
to the Commission 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
(b) A detailed
reconciliation of the amount of recovery requested to the approved budget
items, showing carrying charges separately; and
(c) Proposed rate design and rates by
customer class for the annual recovery requested in a separate line item on a
Admin. Code §
Added to NAC
by Bd. of Exam'rs for Marriage & Fam. Therapists by