Nev. Admin. Code § 704.Sec. 13 - NEW

1. 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.
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 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.
(d) 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.
4. 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 account;
(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 customer's bill.


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
NRS 703.025, 704.210, 704.7983

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