2005 Nevada Revised Statutes - Chapter 704 — Regulation of Public Utilities Generally

CHAPTER 704 - REGULATION OF PUBLICUTILITIES GENERALLY

GENERAL PROVISIONS

NRS 704.001 Purposeand policy of Legislature in enacting chapter.

NRS 704.005 Definitions.

NRS 704.007 Biomassdefined.

NRS 704.010 Commissiondefined.

NRS 704.012 ConsumersAdvocate defined.

NRS 704.015 Persondefined.

NRS 704.020 Publicutility or utility defined.

NRS 704.030 Personsnot included in public utility or utility.

NRS 704.031 Powerto subpoena person claiming exemption.

NRS 704.032 Participationof Commission on Economic Development in proceedings before Commission.

ANNUAL ASSESSMENTS

NRS 704.033 Levyand collection; limitations.

NRS 704.035 Reporton revenue; computation, payment and adjustment of assessment; penalty fordelinquent assessment; action for collection; transfer to Consumers Advocate.

GENERAL RIGHTS AND OBLIGATIONS

NRS 704.040 Chargesfor services must be just and reasonable; plan of alternative regulation forpublic utilities that provide telecommunication services; fair and impartialregulation of certain telecommunication services; fund for maintaining availabilityof telephone service.

NRS 704.050 Specialcontract rates.

NRS 704.060 Chargefor shorter haul included within longer haul.

RATES AND SCHEDULES

NRS 704.061 Definitions.

NRS 704.062 Applicationto make changes in any schedule and application defined.

NRS 704.065 Ratedefined.

NRS 704.066 Scheduledefined.

NRS 704.068 Actsdeemed to be change in schedule.

NRS 704.069 Commissionrequired to conduct consumer session for certain rate cases; Commissionrequired to conduct general consumer session annually in certain counties.

NRS 704.070 Publicutility required to file current schedules with Commission and to post currentschedules at certain offices; public inspection of current schedules.

NRS 704.075 Separatestandards for rates for natural gas supplied to commercial and industrialcustomers; exemption from certain provisions concerning rates.

NRS 704.095 Simplifiedprocedure or methodology for changing rates for certain public utilitiesfurnishing water or services for sewage.

NRS 704.097 Simplifiedprocedure for obtaining certificate of public convenience and necessity and forchanging rates for certain public utilities furnishing liquefied petroleum gas.

NRS 704.100 Procedurefor changing schedule: Approval of Commission required; filing application orletter of advice; quarterly rate adjustments for certain utilities; postingproposed, new and amended schedules; limitation on use of certain informationto justify rate increase; power of Commission to dispense with hearing incertain matters.

NRS 704.110 Procedurefor changing schedule: Investigation by Commission; parties; time within whichCommission must act; general rate application; application to recover increasedcost of purchased fuel, purchased power or natural gas purchased for resale;quarterly rate adjustments for certain utilities; application to clear deferredaccounts; recovery of costs to plan and construct certain facilities; requestby PAR carrier.

NRS 704.120 Commissionmay substitute just and reasonable rates, regulations, practices or servicesafter investigation and hearing.

NRS 704.130 Rateseffective and regulations enforceable until modified by Commission or court.

NRS 704.140 Freeor reduced rates for transportation unlawful; exceptions; penalty.

GENERAL STANDARDS AND PRACTICES

NRS 704.143 Physicallyor mentally handicapped person entitled to full and equal enjoyment offacilities for public transportation; unlawful denial of services andfacilities.

NRS 704.145 Unlawfulto refuse service of public transportation or charge additional fee or depositto certain persons accompanied by service animal or service animal in training;remedies.

NRS 704.150 Dutyof connecting railroad to transfer car for just and reasonable charge.

NRS 704.160 Dutyof railroad to provide and maintain depots, stations and other facilities.

NRS 704.170 Dutyof railroad to furnish freight cars to shippers; regulations.

NRS 704.175 Compliancewith standards for electrical construction; inspection; exemption.

NRS 704.183 Examinationof certain public utilities.

NRS 704.1835 Commissionrequired to adopt or amend regulations relating to termination of utilityservice for gas, water or electricity.

DEFERRED ACCOUNTING

NRS 704.185 Useof deferred accounting by certain natural gas utilities; procedure;limitations.

NRS 704.187 Useof deferred accounting by certain electric utilities; procedure; limitations.

REPORTS AND RECORDS

NRS 704.190 Reportand investigation of accident; regulations; forms; public inspection of report;inadmissibility of report in action for damages.

NRS 704.195 Recordingof telephone call concerning emergency or service outage; disclosure.

NRS 704.197 Publicutility to provide name and address of person listed in records of utility uponrequest of public administrator or deputy; immunity for disclosure made in goodfaith.

NRS 704.201 Investigationby law enforcement agency: Subpoena for name and address of person listed inrecords of customers.

NRS 704.202 Investigationby law enforcement agency: Disclosure of name and address of person listed inrecords of customers.

NRS 704.206 Provisionof list of customers for district judge or jury commissioner; reimbursement forcost of compiling list; immunity from liability for disclosure of list.

OTHER STANDARDS AND PRACTICES

NRS 704.210 Powersof Commission: Adoption of regulations; supervision and regulation of publicutilities.

NRS 704.215 Powersof Commission: Adoption of certain rules, regulations and rates by reference.

NRS 704.220 Powersof Commission: Fixing standards; examination and testing of product or service.

NRS 704.223 Authorizationof purchase or transmission of electricity to certain businesses to reduceoverall cost of electricity to business.

NRS 704.225 Regulationsrequiring lower rates for electricity for irrigation pumps: Interruptibleservice.

NRS 704.230 Installationand use of water meters; separate rate for residential users. [Effective untilcertain conditions concerning agreement between Sierra Pacific Power Companyand Pyramid Lake Paiute Tribe have been met.]

NRS 704.230 Installationof water meters required by certain residential buildings; exceptions.[Effective when certain conditions concerning agreement between Sierra PacificPower Company and Pyramid Lake Paiute Tribe have been met.]

NRS 704.235 Useby local government of facilities of public utility for treatment, transportationor exchange of water.

NRS 704.240 Powersof Commission: Purchase of apparatus for examinations and tests; entry onpremises to make examination and test.

NRS 704.250 Powersof Commission: Standards for maintenance, use and operation of electric poles,wires, cables and appliances.

NRS 704.260 Powersof Commission: Requiring repair and construction of property and use ofappliances for safety; regulations.

NRS 704.280 Powersof Commission: Regulation of lines and tracks; regulations; safety devices.

NRS 704.285 Violationof law governing interception or disclosure of communications made by wire orradio: Investigation; hearing; orders to cease and desist.

NRS 704.300 Railroadcrossings: Powers of Commission; payment of expenses.

NRS 704.305 Railroadcrossings: Apportionment of costs of construction, reconstruction andprotective devices; maintenance of surface.

NRS 704.307 Railroads:Duty of Commission to ensure safety; regulations.

NRS 704.309 Railroads:Commission to levy and collect annual assessments; payment of penalty; sale ortransfer of certificate of public convenience and necessity; action forcollection of assessment or penalty.

NRS 704.310 Sale of surplus light, heat or power by person not public utility; approval by Commission.

NRS 704.320 Purchaseof surplus water or electric current by public utility for resale; applicationfiled with Commission; approval of application; seller not deemed publicutility.

STOCKS AND SECURITY TRANSACTIONS

NRS 704.322 Securitydefined.

NRS 704.323 Issuanceof security or assumption of obligation by privately owned public utilitysubject to authorization by Commission; exceptions.

NRS 704.324 Orderauthorizing issuance of security or assumption of obligation; variable-ratesecurities; supplemental order; findings; conditions.

NRS 704.325 Limitationson application of security or proceeds.

NRS 704.326 Guaranteeor obligation of State not implied.

NRS 704.327 Paymentof necessary expenses of Commission by public utility.

NRS 704.328 Inapplicabilityof NRS 704.322 to 704.326, inclusive, to certain public utilities.

MERGERS, ACQUISITIONS OR CHANGES IN CONTROL

NRS 704.329 Mergers,acquisitions or changes in control of public utility or entity that holdscontrolling interest in public utility: Authorization of Commission required;time within which Commission must act; exceptions.

CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY

NRS 704.3296 Electricutility defined.

NRS 704.330 Publicutility to obtain certificate of public convenience or necessity; exceptions;terms and conditions; orders to cease and desist; duplication of service.

NRS 704.340 Municipalitiesand certain trusts for furtherance of public functions not required to obtaincertificates; approval and jurisdiction of Commission.

NRS 704.350 Prerequisitesto issuance of certificate.

NRS 704.360 Conductof investigations and hearings.

NRS 704.370 Issuanceor refusal of certificate: Terms and conditions; hearing required for certainapplications; power of Commission to dispense with hearing for certainapplications.

NRS 704.380 Publicutility beginning, prosecuting or completing new construction withoutcertificate: Levy of tolls and charges prohibited and void.

NRS 704.390 Discontinuance,modification or restriction of service: Authorization of Commission required;hearing required for certain applications; power of Commission to dispense withhearing for certain applications.

NRS 704.400 Orderof Commission prima facie lawful from date of order.

NRS 704.410 Transferof certificate: Authorization of Commission required; hearing required forcertain transfers; power of Commission to dispense with hearing for certaintransfers; factors considered; effectiveness of certificate after transfer.

NRS 704.430 Penalty;separate offenses.

VALUATION OF PROPERTY

NRS 704.440 Investigationand ascertainment of value of property of public utility.

VIOLATIONS, PENALTIES AND REMEDIES

NRS 704.595 Civilpenalty for violation of regulations adopted in conformity with Natural GasPipeline Safety Act of 1968; compromise and recovery of penalty.

NRS 704.600 Failureor refusal to make reports or allow examination unlawful; penalty.

NRS 704.630 Additionalcivil remedies of Commission.

NRS 704.635 Orderby Commission to cease and desist.

NRS 704.638 Unlawfulto post sign on device of public utility used to support line for telegraph,telephone or electricity.

NRS 704.640 Criminalpenalties.

NRS 704.645 Remediesof State cumulative; election of remedies.

CUSTOMER DEPOSITS

NRS 704.655 Publicutility required to pay interest on deposits made by customers; penalty.

WATER SERVICE AND SEWAGE SERVICE

NRS 704.660 Publicutility supplying water required to provide sufficient water for protectionfrom fire at reasonable rates; regulations by Commission.

NRS 704.662 Planof water conservation: Requirement and procedure for adoption; review byCommission; election to comply with plan adopted by Commission.

NRS 704.6622 Planof water conservation: Contents; approval by Commission.

NRS 704.6624 Planto provide incentives for water conservation: Procedure for adoption; revision;review and approval by Commission.

NRS 704.664 Facilityfor treatment of water acquired and constructed by county: Approval ofCommission required for imposition of tax to finance facility if water taxed issupplied by public utility; determination by Commission.

NRS 704.6642 Facilityfor treatment of water acquired and constructed by county: Billing andcollection of tax imposed on customers of public utility.

NRS 704.6644 Facilityfor treatment of water acquired and constructed by county: Public utilitys useof water treatment services provided by facility authorized; Commissionsapproval of agreement for use required.

NRS 704.6646 Facilityfor treatment of water acquired and constructed by county: Operation andmaintenance of facility by public utility authorized; Commissions approval ofagreement for operation and maintenance required.

NRS 704.665 Waterto be provided through single connection to building containing multiple unitsfor occupancy; exception.

NRS 704.667 Publicutility not required to furnish water for man-made lake or stream if prohibitedor restricted by ordinance in certain counties; exceptions.

NRS 704.6672 Reviewof water supply and sewage service for certain proposed subdivisions: Duties ofCommission; fee; exceptions.

NRS 704.6674 Supplierof water or services for sewage: Regulation by county; exceptions; appointmentof receiver upon petition of county commissioners.

NRS 704.6676 Supplierof water or services for sewage: Appointment of receiver upon petition ofCommission.

NRS 704.668 Disposalor encumbrance of property by certain public utilities furnishing water orservices for sewage: Approval of Commission required; hearing required incertain matters; regulations.

GEOTHERMAL ENERGY

NRS 704.669 Regulationof sale of geothermal energy to public.

COOPERATIVE ASSOCIATIONS, NONPROFIT CORPORATIONS ANDASSOCIATIONS AND OTHER SIMILAR ENTITIES

NRS 704.673 Cooperatives,nonprofit corporations and associations supplying services both to public andmembers declared public utilities; regulation by Commission.

NRS 704.675 Cooperatives,nonprofit corporations and associations supplying services to members onlydeclared public utilities; limited jurisdiction of Commission.

NRS 704.677 Certificatesof public convenience and necessity to be issued to certain cooperatives,nonprofit corporations and associations; contents of statement and certificate.

BROADBAND SERVICE

NRS 704.684 Limitationson regulation of broadband service.

BROADCAST TELEVISION SERVICE

NRS 704.687 Limitationson exclusion of televised broadcasts of sporting or other special events.

TELECOMMUNICATION SERVICE

Standards and Practices

NRS 704.6873 Commissionrequired to adopt regulations for provision of telecommunication services topublic schools, public libraries, providers of health care serving rural areas,persons with low income and persons in rural, insular and high-cost areas.

NRS 704.6875 Customerentitled to written notice of duration of certain calls.

 

Competition Among Providers; Complaints

NRS 704.6881 Establishmentof standards and penalties to encourage competition and discouragediscrimination in provision of local telecommunication services.

NRS 704.6882 Establishmentof expedited procedures for certain complaints filed by provider againstanother provider.

NRS 704.6883 Judicialreview of certain decisions of Commission.

NRS 704.6884 Providersrequired to comply with state and federal consumer and antitrust protections;providers subject to laws governing unfair trade practices for violations ofstandards established by Commission.

 

PAR Carriers

NRS 704.68904 Definitions.

NRS 704.68908 Affectedperson defined.

NRS 704.6891 Affiliateof an incumbent local exchange carrier and affiliate defined.

NRS 704.68912 Basicnetwork service defined.

NRS 704.68916 Competitiveservice defined.

NRS 704.6892 Competitivesupplier defined.

NRS 704.68922 Deregulatedservice defined.

NRS 704.68924 Discretionaryservice defined.

NRS 704.68928 ElectingPAR carrier defined.

NRS 704.68932 Incumbentlocal exchange carrier defined.

NRS 704.68936 Localarea of transport and access or LATA defined.

NRS 704.6894 Otheressential service defined.

NRS 704.68942 PARcarrier defined.

NRS 704.68944 Pricefloor defined.

NRS 704.68946 Telecommunicationdefined.

NRS 704.68947 Telecommunicationservice defined.

NRS 704.68948 Authorityof PAR carrier to become electing PAR carrier for purposes of regulation;procedure for making election.

NRS 704.68952 Regulationof electing PAR carrier: Limitations on power of Commission regarding earningsand rates; termination and continuation of plan of alternative regulation;limitations on receipt of money from fund created pursuant to NRS 704.040.

NRS 704.68956 Regulationof electing PAR carrier: Approval of Commission required to discontinue orchange terms and conditions relating to provision of certain basic networkservices.

NRS 704.6896 Reclassificationof basic network services: Authority of Commission; adoption of criteria forreclassification; period for acting on request for reclassification from PARcarrier.

NRS 704.68964 Flexibilityin pricing and terms of services: Authority of PAR carrier; procedure andrequirements for exercising flexibility; PAR carrier permitted to bill customerusing fixed price or amount for package of services.

NRS 704.68966 Flexibilityin pricing and terms of services: Prohibition against anticompetitive acts andpractices and unreasonable discrimination among similarly situated customers.

NRS 704.68968 Promotionalprice reductions: Notice; duration; geographic area; nondiscriminatory basis.

NRS 704.68972 Introductionof new services: Notice; conditions; exemption from certain regulations of Commission;classification; price.

NRS 704.68976 Ratesfor services to be averaged geographically; exception.

NRS 704.6898 Intrastateaccess prices: Maximum amount; offset of reductions.

NRS 704.68984 Powersand duties of Commission and PAR carriers under certain federal and state lawspreserved.

ELECTRIC SERVICE

Conversion of Certain Generation Facilities

NRS 704.701 Definitions.

NRS 704.706 Conversionof facility to allow firing by coal: Application for adjustment of rates;public hearing.

NRS 704.711 Decisionon application for adjustment; conditions; requirements for approval; federalor state grants.

NRS 704.716 Calculationof amount of adjustment; effect on rates, prices and charges.

NRS 704.721 Filingof tariff on date of conversion.

NRS 704.726 Annualaccounting of cost of conversion and revenues from adjustment in rates;termination of adjustment upon recovery of cost of conversion.

NRS 704.731 Faithof State pledged.

 

Optional Pricing and Resource Planning

NRS 704.736 Applicability.

NRS 704.738 Programof optional pricing for electricity generated from renewable energy:Authorization of Commission required; Commission may authorize higher rates.

NRS 704.741 Planto increase supply or decrease demands: Triennial submission required; contentsprescribed by regulation.

NRS 704.746 Publichearing on adequacy of plan; determination by Commission.

NRS 704.751 Orderaccepting plan or specifying inadequacies; recovery of costs from customers.

 

Disposal of Generation Assets

NRS 704.7561 Definitions.

NRS 704.7565 Affiliatedefined.

NRS 704.7568 Disposeof a generation asset defined.

NRS 704.7571 Electricutility defined.

NRS 704.7575 Generationasset defined.

NRS 704.7578 Interestin a generation asset defined.

NRS 704.7581 Persondefined.

NRS 704.7585 Provisionsdo not prohibit certain transactions involving generation assets or otherproperty.

NRS 704.7588 Conditionsand limitations on disposal of generation assets; approval of Commissionrequired; application; parties; effect of certain orders.

NRS 704.7591 Conditionsand limitations on disposal of generation assets pursuant to certain mergers,acquisitions, transactions and transfers.

NRS 704.7595 Effectof violation.

 

Disclosures to Customers

NRS 704.763 Electricutility required to disclose certain information to retail customers; format,contents and methods of disclosure; regulations; exceptions.

Net Metering Systems

NRS 704.766 Legislativedeclaration.

NRS 704.767 Definitions.

NRS 704.768 Customer-generatordefined.

NRS 704.769 Netmetering defined.

NRS 704.771 Netmetering system defined.

NRS 704.7715 Renewableenergy defined.

NRS 704.772 Utilitydefined.

NRS 704.773 Utilityrequired to offer net metering; limitations; rights and duties regarding energymeters and imposition of certain fees and charges.

NRS 704.774 Standards;utility prohibited from requiring certain customer-generators to meetadditional requirements.

NRS 704.775 Billing;calculation of net energy measurement; treatment of excess electricity; certainexcess electricity deemed electricity generated or acquired from renewableenergy system for purposes of portfolio standard.

 

Portfolio Standard

NRS 704.7801 Definitions.

NRS 704.7802 Energyefficiency measure defined.

NRS 704.7803 Portfolioenergy credit defined.

NRS 704.7804 Portfolioenergy system or efficiency measure defined.

NRS 704.7805 Portfoliostandard defined.

NRS 704.7808 Providerof electric service and provider defined.

NRS 704.7809 Qualifiedenergy recovery process defined.

NRS 704.7811 Renewableenergy defined.

NRS 704.7815 Renewableenergy system defined.

NRS 704.7818 Retailcustomer defined.

NRS 704.7819 Utilityprovider defined.

NRS 704.7821 Establishmentof portfolio standard; requirements; reimbursement of costs of solar energysystems; portfolio energy credits; renewable energy contracts and energyefficiency contracts; exemptions; regulations.

NRS 704.78215 Calculationof portfolio energy credits.

NRS 704.7822 Calculationof electricity generated or acquired from certain solar photovoltaic systems.

NRS 704.7823 Systemthat draws or creates electricity from tires deemed not to be renewable energysystem; exception; calculation of electricity generated or acquired fromcertain systems that utilize reverse polymerization process.

NRS 704.7825 Reports.

NRS 704.7827 Temporaryrenewable energy development program.

NRS 704.7828 Regulations;enforcement; administrative fines.

 

Colorado River Commission of Nevada

NRS 704.787 Authorityto sell electricity and provide transmission service and distribution serviceto certain customers without being subject to jurisdiction of Public UtilitiesCommission of Nevada; tariff for distribution service; duties of certainelectric utility.

UNLAWFUL ACTS AGAINST PUBLIC UTILITIES

NRS 704.800 Unlawfulacts involving theft or damage to property: Criminal penalties.

NRS 704.805 Unlawfulacts involving theft or damage to property: Civil remedies.

CONSTRUCTION OF UTILITY FACILITIES: UTILITY ENVIRONMENTALPROTECTION ACT

NRS 704.820 Shorttitle.

NRS 704.825 Declarationof legislative findings and purpose.

NRS 704.830 Definitions.

NRS 704.834 Appropriatefederal agency defined.

NRS 704.840 Commenceto construct defined.

NRS 704.842 Environmentalreview defined.

NRS 704.845 Localgovernment defined.

NRS 704.848 Otherpermitting entity defined.

NRS 704.850 Persondefined.

NRS 704.855 Publicutility and utility defined.

NRS 704.860 Utilityfacility defined.

NRS 704.863 Applicability.

NRS 704.865 Permitrequired to construct utility facility; transfer of permit; exemptions; waiverof exemption.

NRS 704.870 Requirementsfor filing application: Form and contents; procedure when federal agency isrequired to conduct environmental analysis; time for filing amendedapplication; service; public notice.

NRS 704.873 Commissionhas exclusive jurisdiction to determine need for utility facilities of certainpublic utilities; other permitting entities precluded from considering need.

NRS 704.875 Reviewof application by Division of Environmental Protection of State Department ofConservation and Natural Resources.

NRS 704.877 Dutyto accept and incorporate findings and conclusions of environmental review thatalready has been conducted; duplicative review prohibited; exception; duty tocooperate and coordinate to avoid duplication of activities.

NRS 704.880 Powerof Commission to dispense with hearing for certain applications; practice andprocedure at hearings.

NRS 704.885 Partiesto proceeding for permit; limited appearance; intervention.

NRS 704.890 Grantor denial of application: Required findings; conditions and modifications.

NRS 704.8905 Grantor denial of application: Time within which Commission and other permittingentities must act; determination upon record; terms, conditions andmodifications; service of Commission order.

NRS 704.891 Reportsto be filed with Commission by person holding permit who is not public utility.

NRS 704.893 Limitationson purchase of capacity of utility facility by certain public utilities.

NRS 704.895 Rehearing;judicial review.

NRS 704.897 Effectof provisions on jurisdiction of Commission over public utilities servingretail customers in State.

NRS 704.900 Cooperationwith other states and Federal Government.

UTILITY SERVICE PROVIDED TO MOBILE HOME PARKS AND COMPANYTOWNS

NRS 704.905 Definitions.

NRS 704.910 Applicabilityof provisions to mobile home parks; utility or alternative seller prohibitedfrom selling to landlord at higher rate.

NRS 704.920 Applicabilityof provisions to company towns; examination of lines and equipment; costs;consequences of refusal to allow examination; repair of unsafe lines orequipment.

NRS 704.930 Mannerof provision and interruption of service by landlord of mobile home park orowner of company town; notice of proposed increase in rates.

NRS 704.940 Rates;service charges; proration and limitations on certain charges for water;itemization of charges; retention of copy of billings; transfer of balance bylandlord upon termination of interest in mobile home park.

NRS 704.950 Complaints:Investigation by Division of Consumer Complaint Resolution; action byCommission; enforcement of order.

NRS 704.960 Annualreport to be filed by landlord of mobile home park or owner of company town.

LIQUEFIED PETROLEUM GAS SERVICE

NRS 704.964 Leaseof tank for storage of liquefied petroleum gas: Removal of tank upon request;requirements for refund; penalty.

NATURAL GAS SERVICE

Discretionary Service

NRS 704.9901 Collectionof taxes, fees and assessments from customers: Duties of providers; billingrequirements; disciplinary action for failure to comply.

 

Resource Planning

NRS 704.991 Informationalreport to Commission required regarding anticipated demand, estimated cost,sources of gas and significant operational or capital requirements.

 

Competitive Service

NRS 704.993 Definitions.

NRS 704.994 Alternativeseller defined.

NRS 704.995 Persondefined.

NRS 704.996 Potentiallycompetitive service defined.

NRS 704.997 Alternativeplan of regulation for utility that supplies natural gas: Requirements;regulations; applicability of statutory provisions; use of name or logo byaffiliate; sale of service relating to supply of natural gas by unlicensedalternative seller unlawful.

NRS 704.998 Licensingof alternative sellers: Requirements; regulations; denial, limitation,suspension or revocation.

NRS 704.9985 Collectionof taxes, fees and assessments from customers: Duties of public utilities andalternative sellers; billing requirements; disciplinary action for failure tocomply.

NRS 704.999 Restorationof service: Conditions; tariffs.

_________

 

GENERAL PROVISIONS

NRS 704.001 Purposeand policy of Legislature in enacting chapter. Itis hereby declared to be the purpose and policy of the Legislature in enactingthis chapter:

1. To confer upon the Commission the power, and tomake it the duty of the Commission, to regulate public utilities to the extentof its jurisdiction;

2. To provide for fair and impartial regulation ofpublic utilities;

3. To provide for the safe, economic, efficient,prudent and reliable operation and service of public utilities; and

4. To balance the interests of customers andshareholders of public utilities by providing public utilities with theopportunity to earn a fair return on their investments while providingcustomers with just and reasonable rates.

(Added to NRS by 1993, 836; A 1997, 1904)

NRS 704.005 Definitions. As used in this chapter, unless the context otherwise requires,the words and terms defined in NRS 704.007to 704.030, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1985, 1016; A 2001, 3244)

NRS 704.007 Biomassdefined. Biomass means any organic matterthat is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes andresidues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

(Added to NRS by 2001, 3242)

NRS 704.010 Commissiondefined. Commission means the PublicUtilities Commission of Nevada.

(Supplied in revision; A 1985, 1016; 1997, 1904)

NRS 704.012 ConsumersAdvocate defined. Consumers Advocate meansthe Consumers Advocate of the Bureau of Consumer Protection in the Office ofthe Attorney General.

(Added to NRS by 2001, 3242)

NRS 704.015 Persondefined. Person is limited to a personengaged in or intending to engage in the operation of a public utility.

(Added to NRS by 1969, 1161; A 1985, 539, 1016)

NRS 704.020 Publicutility or utility defined.

1. Public utility or utility includes:

(a) Any person who owns, operates, manages or controlsany railroad or part of a railroad as a common carrier in this state, or carsor other equipment used thereon, or bridges, terminals, or sidetracks, or anydocks or wharves or storage elevators used in connection therewith, whether ornot they are owned by the railroad.

(b) Any telephone company that provides atelecommunication service to the public, but only with regard to thoseoperations of the telephone company which consist of providing atelecommunication service to the public.

(c) Any radio or broadcasting company orinstrumentality that provides a common or contract service.

(d) Any company that owns cars of any kind orcharacter, used and operated as a part of railroad trains, in or through thisstate. All duties required of and penalties imposed upon any railroad or anyofficer or agent thereof are, insofar as applicable, required of and imposedupon the owner or operator of any telephone company that provides atelecommunication service to the public, any radio or broadcasting company orinstrumentality that provides a common or contract service and any company thatowns cars of any kind or character, used and operated as a part of railroadtrains in or through this state, and their officers and agents, and theCommission may supervise and control all such companies, instrumentalities andpersons to the same extent as railroads.

2. Public utility or utility also includes:

(a) Any person who owns, operates or controls anyditch, flume, tunnel or tunnel and drainage system, charging rates, fares ortolls, directly or indirectly.

(b) Any plant or equipment, or any part of a plant orequipment, within this state for the production, delivery or furnishing for orto other persons, including private or municipal corporations, heat, gas, coalslurry, light, power in any form or by any agency, water for business,manufacturing, agricultural or household use, or sewerage service, whether ornot within the limits of municipalities.

(c) Any system for the distribution of liquefiedpetroleum gas to 10 or more users.

TheCommission may supervise, regulate and control all such utilities, subject tothe provisions of this chapter and to the exclusion of the jurisdiction,regulation and control of such utilities by any municipality, town or village,unless otherwise provided by law.

3. The provisions of this chapter and the term publicutility apply to all railroads, express companies, car companies and allassociations of persons, whether or not incorporated, that do any business as acommon carrier upon or over any line of railroad within this state.

[Part 7:109:1919; A 1925, 243; 1928, 58; NCL 6106](NRS A 1963, 10, 811, 1115; 1967, 1230; 1969, 1155; 1971, 724; 1977, 630;1981, 154; 1983, 154; 1985, 1016, 2049; 1987, 1541; 1997, 1904; 2003, 3036)

NRS 704.030 Personsnot included in public utility or utility. Publicutility or utility does not include:

1. Persons engaged in the production and sale ofnatural gas, other than sales to the public, or engaged in the transmission ofnatural gas other than as a common carrier transmission or distribution line orsystem.

2. Persons engaged in the business of furnishing, forcompensation, water or services for the disposal of sewage, or both, to personswithin this State if:

(a) They serve 25 persons or less; and

(b) Their gross sales for water or services for thedisposal of sewage, or both, amounted to $5,000 or less during the immediatelypreceding 12 months.

3. Persons not otherwise engaged in thebusiness of furnishing, producing or selling water or services for the disposalof sewage, or both, but who sell or furnish water or services for the disposalof sewage, or both, as an accommodation in an area where water or services forthe disposal of sewage, or both, are not available from a public utility,cooperative corporations and associations or political subdivisions engaged inthe business of furnishing water or services for the disposal of sewage, orboth, for compensation, to persons within the political subdivision.

4. Persons who are engaged in the production and saleof energy, including electricity, to public utilities, cities, counties orother entities which are reselling the energy to the public.

5. Persons who are subject to the provisions of NRS 590.465 to 590.645, inclusive.

6. Persons who are engaged in the sale or use ofspecial fuel as defined in NRS 366.060.

7. Persons who provide water from water storage,transmission and treatment facilities if those facilities are for the storage,transmission or treatment of water from mining operations.

[Part 7:109:1919; A 1925, 243; 1928, 58; NCL 6106](NRS A 1963, 403, 816; 1969, 1001; 1971, 725, 1208; 1979, 1717; 1981,661; 1983, 234, 1227; 1985, 1017, 2298; 1987, 477, 1388, 1542; 1997, 1905; 2001, 346)

NRS 704.031 Powerto subpoena person claiming exemption. The Commissionmay by subpoena require any person claiming to be exempt from regulation byreason of NRS 704.030 to appear beforeit with all of his relevant books, papers and records, and to testifyconcerning the scope, nature and conduct of his business.

(Added to NRS by 1983, 234)

NRS 704.032 Participationof Commission on Economic Development in proceedings before Commission. The Commission on Economic Development may participate inproceedings before the Public Utilities Commission of Nevada concerning apublic utility in the business of supplying electricity or natural gas toadvocate the accommodation of the State Plan for Industrial Development and Diversification.The Commission on Economic Development may intervene as a matter of right in aproceeding pursuant to NRS 704.736 to 704.751, inclusive, or 704.991.

(Added to NRS by 1993, 818; A 1997, 1906)

ANNUAL ASSESSMENTS

NRS 704.033 Levyand collection; limitations.

1. Except as otherwise provided in subsection 6, theCommission shall levy and collect an annual assessment from all publicutilities, providers of discretionary natural gas service and alternativesellers subject to the jurisdiction of the Commission.

2. Except as otherwise provided in subsections 3 and4, the annual assessment must be:

(a) For the use of the Commission, not more than 3.50mills; and

(b) For the use of the Consumers Advocate, not morethan 0.75 mills,

on eachdollar of gross operating revenue derived from the intrastate operations ofsuch utilities, providers of discretionary natural gas service and alternativesellers in the State of Nevada. The total annual assessment must be not morethan 4.25 mills.

3. The levy for the use of the Consumers Advocatemust not be assessed against railroads.

4. The minimum assessment in any 1 year must be $100.

5. The gross operating revenue of the utilities mustbe determined for the preceding calendar year. In the case of:

(a) Telephone utilities, except as provided inparagraph (c), the revenue shall be deemed to be all intrastate revenues.

(b) Railroads, the revenue shall be deemed to be therevenue received only from freight and passenger intrastate movements.

(c) All public utilities, providers of discretionarynatural gas service and alternative sellers, the revenue does not include theproceeds of any commodity, energy or service furnished to another publicutility, provider of discretionary natural gas service or alternative sellerfor resale.

6. Providers of commercial mobile radio service arenot subject to the annual assessment and, in lieu thereof, shall pay to theCommission an annual licensing fee of $200.

(Added to NRS by 1963, 1113; A 1965, 543; 1969, 1001;1971, 726; 1973, 331, 1832; 1975, 907; 1977, 548; 1981, 1678; 1983, 531; 1989,618; 1997, 1906; 2001,1762, 3244, 3272; 2003, 235)

NRS 704.035 Reporton revenue; computation, payment and adjustment of assessment; penalty fordelinquent assessment; action for collection; transfer to Consumers Advocate.

1. On or before June 15 of each year, the Commissionshall mail revenue report forms to all public utilities, providers ofdiscretionary natural gas service and alternative sellers under itsjurisdiction, to the address of those utilities, providers of discretionarynatural gas service and alternative sellers on file with the Commission. Therevenue report form serves as notice of the Commissions intent to assess suchentities, but failure to notify any such entity does not invalidate theassessment with respect thereto.

2. Each public utility, provider of discretionarynatural gas service and alternative seller subject to the provisions of NRS 704.033 shall complete the revenue reportreferred to in subsection 1, compute the assessment and return the completedrevenue report to the Commission accompanied by payment of the assessment andany penalty due, pursuant to the provisions of subsection 5.

3. The assessment is due on July 1 of each year, butmay, at the option of the public utility, provider of discretionary natural gasservice and alternative seller, be paid quarterly on July 1, October 1, January1 and April 1.

4. The assessment computed by the public utility,provider of discretionary natural gas service or alternative seller is subjectto review and audit by the Commission, and the amount of the assessment may beadjusted by the Commission as a result of the audit and review.

5. Any public utility, provider of discretionarynatural gas service or alternative seller failing to pay the assessmentprovided for in NRS 704.033 on or beforeAugust 1, or if paying quarterly, on or before August 1, October 1, January 1or April 1, shall pay, in addition to such assessment, a penalty of 1 percentof the total unpaid balance for each month or portion thereof that theassessment is delinquent, or $10, whichever is greater, but no penalty mayexceed $1,000 for each delinquent payment.

6. When a public utility, provider of discretionarynatural gas service or alternative seller sells, transfers or conveyssubstantially all of its assets or, if applicable, its certificate of publicconvenience and necessity, the Commission shall determine, levy and collect theaccrued assessment for the current year not later than 30 days after the sale,transfer or conveyance, unless the transferee has assumed liability for theassessment. For purposes of this subsection, the jurisdiction of the Commissionover the selling, transferring or conveying public utility, provider ofdiscretionary natural gas service or alternative seller continues until it haspaid the assessment.

7. The Commission may bring an appropriate action inits own name for the collection of any assessment and penalty which is not paidas provided in this section.

8. The Commission shall, upon collection, transfer tothe Account for the Consumers Advocate that portion of the assessmentscollected which belongs to the Consumers Advocate.

(Added to NRS by 1963, 1113; A 1967, 1383; 1969,1156; 1973, 457, 1833; 1981, 1678; 1989, 1473; 1997, 1907; 2001, 1763, 3244, 3272; 2003, 372; 2005, 1276)

GENERAL RIGHTS AND OBLIGATIONS

NRS 704.040 Chargesfor services must be just and reasonable; plan of alternative regulation forpublic utilities that provide telecommunication services; fair and impartialregulation of certain telecommunication services; fund for maintainingavailability of telephone service.

1. Every public utility shall furnish reasonablyadequate service and facilities, and the charges made for any service renderedor to be rendered, or for any service in connection therewith or incidentalthereto, must be just and reasonable.

2. Every unjust and unreasonable charge for service ofa public utility is unlawful.

3. The Commission may exempt, to the extent it deemsreasonable, services related to telecommunication or public utilities whichprovide telecommunication services from any or all of the provisions of thischapter, upon a determination after hearing that the services are competitiveor discretionary and that regulation thereof is unnecessary. For the purposesof this subsection, basic local exchange service and access services providedto interexchange carriers are not discretionary.

4. The Commission shall adopt regulations necessary toestablish a plan of alternative regulation for a public utility that providestelecommunication services. The plan of alternative regulation may include, butis not limited to, provisions that:

(a) Allow adjustment of the rates charged by a publicutility that provides telecommunication services during the period in which theutility elects the plan of alternative regulation.

(b) Provide for flexibility of pricing fordiscretionary services and services that are competitive.

(c) Specify the provisions of this chapter, NRS 426.295 and chapter707 of NRS that do not apply to a public utility that elects to beregulated under the plan of alternative regulation.

(d) Except as otherwise provided in this paragraph and NRS 704.68952, if the public utility isan incumbent local exchange carrier, allow the incumbent local exchange carrierto select the duration of the period in which the incumbent local exchangecarrier is to be regulated under the plan of alternative regulation. Theincumbent local exchange carrier may not select a period that is less than 3years or more than 5 years. The provisions of this paragraph do not apply to aplan of alternative regulation of an incumbent local exchange carrier regulatedunder a plan of alternative regulation that was approved by the Commissionbefore June 11, 2003.

5. A public utility that elects to be regulated undera plan of alternative regulation established pursuant to subsection 4 is notsubject to the remaining provisions of this chapter, NRS 426.295 or chapter707 of NRS to the extent specified pursuant to paragraph (c) of subsection4.

6. All providers of telecommunication services whichoffer the same or similar service must be subject to fair and impartialregulation, to promote adequate, economical and efficient service.

7. The Commission may provide for the levy andcollection of an assessment, in an amount determined by the Commission, from apublic utility that provides telecommunication services in order to maintainthe availability of telephone service. Assessments levied pursuant to thissubsection must be maintained in a separate fund established by the Commission.The Commission shall contract with an independent administrator to administerthe fund pursuant to open competitive bidding procedures established by theCommission. The independent administrator shall collect the assessments leviedand distribute them from the fund pursuant to a plan which has been approved bythe Commission. Money in the fund must be used for the sole purpose ofmaintaining the availability of telephone service.

8. As used in this section:

(a) Incumbent local exchange carrier has the meaningascribed to it in NRS 704.68932.

(b) Interexchange carrier means any person providingintrastate telecommunications service for a fee between two or more exchanges.

[9:109:1919; 1919 RL p. 3157; NCL 6108](NRS A1985, 1018; 1989, 579; 1993, 2017; 1995, 402; 2003, 2638, 3037)

NRS 704.050 Specialcontract rates.

1. Nothing in this chapter shall be construed toprevent concentration, commodity, transit and other special contract rates, butall such rates shall be open to all shippers of a like kind of traffic undersimilar circumstances and conditions, and shall be subject to the provisions ofthis chapter as to the printing and filing of the same.

2. All such rates shall be under the supervision andregulation of the Commission.

[16:109:1919; 1919 RL p. 3159; NCL 6115]

NRS 704.060 Chargefor shorter haul included within longer haul. Nothingin this chapter shall be construed:

1. To allow any railroad to charge more for a shorterthan for a longer haul, either for passengers or freight, when the shorter haulis included within the longer; or

2. To authorize the Commission to allow such charge tobe made.

[20:109:1919; 1919 RL p. 3161; NCL 6120]

RATES AND SCHEDULES

NRS 704.061 Definitions. As used in NRS 704.061to 704.110, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 704.062, 704.065 and 704.066 have the meanings ascribed to themin those sections.

(Added to NRS by 2001, 3243)

NRS 704.062 Applicationto make changes in any schedule and application defined. Application to make changes in any schedule andapplication include, without limitation:

1. A general rate application;

2. An application to recover the increased cost ofpurchased fuel, purchased power, or natural gas purchased for resale; and

3. An application to clear deferred accounts.

(Added to NRS by 2001, 3243)

NRS 704.065 Ratedefined. Rate means any individual or jointrate, toll or charge imposed by a public utility for a service performed orproduct furnished by the public utility.

(Added to NRS by 2001, 3243)

NRS 704.066 Scheduledefined. Schedule means any schedule thatestablishes or otherwise sets the rates for a public utility and any individualor joint rule, regulation, practice, classification or measurement that in anymanner affects those rates.

(Added to NRS by 2001, 3243)

NRS 704.068 Actsdeemed to be change in schedule. For the purposesof NRS 704.061 to 704.110, inclusive, a public utility shallbe deemed to make changes in a schedule if the public utility implements a newschedule or amends an existing schedule.

(Added to NRS by 2001, 3243)

NRS 704.069 Commissionrequired to conduct consumer session for certain rate cases; Commissionrequired to conduct general consumer session annually in certain counties.

1. Except as otherwise provided in subsection 8 of NRS 704.110, the Commission shall conduct aconsumer session to solicit comments from the public in any matter pendingbefore the Commission pursuant to NRS704.061 to 704.110, inclusive, inwhich:

(a) A public utility has filed a general rateapplication, an application to recover the increased cost of purchased fuel,purchased power, or natural gas purchased for resale or an application to clearits deferred accounts; and

(b) The changes proposed in the application will resultin an increase in annual gross operating revenue, as certified by theapplicant, in an amount that will exceed $50,000 or 10 percent of theapplicants annual gross operating revenue, whichever is less.

2. In addition to the case-specific consumer sessionsrequired by subsection 1, the Commission shall, during each calendar year,conduct at least one general consumer session in the county with the largestpopulation in this State and at least one general consumer session in thecounty with the second largest population in this State. At each generalconsumer session, the Commission shall solicit comments from the public onissues concerning public utilities. Not later than 60 days after each generalconsumer session, the Commission shall submit the record from the generalconsumer session to the Legislative Commission.

(Added to NRS by 2001, 3243; A 2005, 1919)

NRS 704.070 Publicutility required to file current schedules with Commission and to post currentschedules at certain offices; public inspection of current schedules. Unless exempt under the provisions of NRS 704.075, 704.095 or 704.097:

1. Each public utility shall file with the Commission,within a time to be fixed by the Commission, a copy of all schedules that arecurrently in force for the public utility. Such schedules must be open topublic inspection.

2. A copy of each schedule that is currently in forcefor the public utility, or so much of the schedule as the Commission deemsnecessary for inspection by the public, must be:

(a) Printed in plain type and posted in each office ofthe public utility where payments are made to the public utility by itscustomers; and

(b) Open to inspection by the public and in such formand place as to be readily accessible to and conveniently inspected by thepublic.

[Part 14:109:1919; A 1933, 228; 1931 NCL 6113](NRSA 1985, 1126; 1989, 1834; 2001, 3245)

NRS 704.075 Separatestandards for rates for natural gas supplied to commercial and industrialcustomers; exemption from certain provisions concerning rates.

1. As used in this section, with respect to the saleof natural gas:

(a) Generating customer means a customer whogenerates electricity by burning natural gas.

(b) Industrial customer means a customer engagedprimarily in manufacturing or processing which changes raw or unfinishedmaterials into another form or creates another product.

(c) Large commercial customer means a customer whoserequirements equal or exceed 50,000 cubic feet of natural gas per day on anyday and which is an institution, an agency of federal, state or localgovernment, or engaged primarily in renting out offices or other commercialspace, in providing lodging or in the sale of other goods or services.

2. The Commission shall establish standards for thesetting, increase or decrease of rates for natural gas to generating,industrial and large commercial customers. These standards must authorizeincreases or decreases on less than 30 days notice. Establishing differentclasses of customers, and charging different rates to customers of the sameclass, for these customers do not violate this chapter.

3. The Commission may, for sales to generating,industrial and large commercial customers:

(a) Exempt the rates for natural gas from thoseprovisions of NRS 704.070, 704.100 and 704.110 that the Commission determines arenot needed to protect the public interest.

(b) Authorize the establishment of different classes ofcustomer or the charging of different rates for customers of the same class,based on value of the service and on the customers ability to change from onefuel to another.

(Added to NRS by 1985, 1125; A 2001, 3246)

NRS 704.095 Simplifiedprocedure or methodology for changing rates for certain public utilitiesfurnishing water or services for sewage. TheCommission shall adopt regulations which provide a simplified procedure ormethodology for a change of rates for those public utilities which furnishwater or services for the disposal of sewage, or both, to persons within thisState for compensation, and which:

1. Serve 3,000 or fewer persons; and

2. Had during the immediately preceding 12-monthperiod gross sales for water or services for the disposal of sewage, or both,amounting to $1,000,000 or less.

(Added to NRS by 1979, 1717; A 1987, 477; 1991, 144; 2001, 1764)

NRS 704.097 Simplifiedprocedure for obtaining certificate of public convenience and necessity and forchanging rates for certain public utilities furnishing liquefied petroleum gas. The Commission may adopt regulations which providesimplified procedures for obtaining certificates of public convenience andnecessity and for changing rates for those public utilities which furnish onlyliquefied petroleum gas.

(Added to NRS by 1989, 1834)

NRS 704.100 Procedurefor changing schedule: Approval of Commission required; filing application orletter of advice; quarterly rate adjustments for certain utilities; postingproposed, new and amended schedules; limitation on use of certain informationto justify rate increase; power of Commission to dispense with hearing incertain matters. Except as otherwise providedin NRS 704.075 and 704.68904 to 704.68984, inclusive, or as may otherwisebe provided by the Commission pursuant to NRS704.095 or 704.097 or pursuant tothe regulations adopted by the Commission in accordance with subsection 4 of NRS 704.040:

1. A public utility shall not make changes in anyschedule, unless the public utility:

(a) Files with the Commission an application to makethe proposed changes and the Commission approves the proposed changes pursuantto NRS 704.110; or

(b) Files the proposed changes with the Commissionusing a letter of advice in accordance with the provisions of subsection 5.

2. A public utility shall adjust its rates on aquarterly basis between annual rate adjustment applications pursuant tosubsection 8 of NRS 704.110 based onchanges in the public utilitys recorded costs of natural gas purchased forresale.

3. A public utility shall post copies of all proposedschedules and all new or amended schedules in the same offices and insubstantially the same form, manner and places as required by NRS 704.070 for the posting of copies ofschedules that are currently in force.

4. A public utility may not set forth as justificationfor a rate increase any items of expense or rate base that previously have beenconsidered and disallowed by the Commission, unless those items are clearlyidentified in the application and new facts or considerations of policy foreach item are advanced in the application to justify a reversal of the priordecision of the Commission.

5. Except as otherwise provided in subsection 6, ifthe proposed change in any schedule does not change any rate or will result inan increase in annual gross operating revenue, as certified by the publicutility, in an amount that does not exceed $2,500:

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

(b) The Commission shall determine whether it shoulddispense with a hearing regarding the proposed change.

6. If the applicant is a public utility furnishingtelephone service and the proposed change in any schedule will result in an increasein annual gross operating revenue, as certified by the applicant, in an amountthat does not exceed $50,000 or 10 percent of the applicants annual grossoperating revenue, whichever is less, the Commission shall determine whether itshould dispense with a hearing regarding the proposed change.

7. In making the determination pursuant to subsection5 or 6, the Commission shall first consider all timely written protests, anypresentation that the Regulatory Operations Staff of the Commission may desireto present, the application of the public utility and any other matters deemedrelevant by the Commission.

[14:109:1919; A 1933, 228; 1931 NCL 6113](NRS A1971, 1117; 1975, 1450; 1979, 1718; 1985, 636, 1126; 1987, 653, 1694; 1989,1834; 2001, 3246;2003, 3038; 2005, 1919)

NRS 704.110 Procedurefor changing schedule: Investigation by Commission; parties; time within whichCommission must act; general rate application; application to recover increasedcost of purchased fuel, purchased power or natural gas purchased for resale; quarterlyrate adjustments for certain utilities; application to clear deferred accounts;recovery of costs to plan and construct certain facilities; request by PARcarrier. Except as otherwise provided in NRS 704.075 and 704.68904 to 704.68984, inclusive, or as may otherwisebe provided by the Commission pursuant to NRS704.095 or 704.097 or pursuant tothe regulations adopted by the Commission in accordance with subsection 4 of NRS 704.040:

1. If a public utility files with the Commission anapplication to make changes in any schedule, including, without limitation,changes that will result in a discontinuance, modification or restriction ofservice, the Commission shall investigate the propriety of the proposed changesto determine whether to approve or disapprove the proposed changes. If anelectric utility files such an application and the application is a generalrate application or an application to clear its deferred accounts, the ConsumersAdvocate shall be deemed a party of record.

2. Except as otherwise provided in subsections 3 and13, if a public utility files with the Commission an application to makechanges in any schedule, the Commission shall issue a written order approvingor disapproving, in whole or in part, the proposed changes:

(a) For a public utility that is a PAR carrier, notlater than 180 days after the date on which the application is filed; and

(b) For all other public utilities, not later than 210days after the date on which the application is filed.

3. If a public utility files with the Commission ageneral rate application, the public utility shall submit with its applicationa statement showing the recorded results of revenues, expenses, investments andcosts of capital for its most recent 12 months for which data were availablewhen the application was prepared. Except as otherwise provided in subsection4, in determining whether to approve or disapprove any increased rates, theCommission shall consider evidence in support of the increased rates based uponactual recorded results of operations for the same 12 months, adjusted forincreased revenues, any increased investment in facilities, increased expensesfor depreciation, certain other operating expenses as approved by theCommission and changes in the costs of securities which are known and aremeasurable with reasonable accuracy at the time of filing and which will becomeeffective within 6 months after the last month of those 12 months, but thepublic utility shall not place into effect any increased rates until thechanges have been experienced and certified by the public utility to theCommission and the Commission has approved the increased rates. The Commissionshall also consider evidence supporting expenses for depreciation, calculatedon an annual basis, applicable to major components of the public utilitysplant placed into service during the recorded test period or the period forcertification as set forth in the application. Adjustments to revenues,operating expenses and costs of securities must be calculated on an annualbasis. Within 90 days after the date on which the certification required bythis subsection is filed with the Commission, or within the period set forth insubsection 2, whichever time is longer, the Commission shall make such order inreference to the increased rates as is required by this chapter. An electricutility shall file a general rate application pursuant to this subsection atleast once every 24 months based on the following schedule:

(a) An electric utility that primarily serves lessdensely populated counties shall file a general rate application on or beforeOctober 3, 2005, and at least once every 24 months thereafter.

(b) An electric utility that primarily serves denselypopulated counties shall file a general rate application on or before November15, 2006, and at least once every 24 months thereafter.

4. In addition to submitting the statement requiredpursuant to subsection 3, a public utility which purchases natural gas for resalemay submit with its general rate application a statement showing the effects,on an annualized basis, of all expected changes in circumstances. If such astatement is filed, it must include all increases and decreases in revenue andexpenses which may occur within 210 days after the date on which its generalrate application is filed with the Commission if such expected changes incircumstances are reasonably known and are measurable with reasonable accuracy.If a public utility submits such a statement, the public utility has the burdenof proving that the expected changes in circumstances set forth in thestatement are reasonably known and are measurable with reasonable accuracy. Ifthe Commission determines that the public utility has met its burden of proof:

(a) The Commission shall consider the statementsubmitted pursuant to this subsection and evidence relevant to the statement inaddition to the statement required pursuant to subsection 3 as evidence inestablishing just and reasonable rates for the public utility; and

(b) The public utility is not required to file with theCommission the certification that would otherwise be required pursuant tosubsection 3.

5. If a public utility files with the Commission anapplication to make changes in any schedule and the Commission does not issue afinal written order regarding the proposed changes within the time required bythis section, the proposed changes shall be deemed to be approved by theCommission.

6. If a public utility files with the Commission ageneral rate application, the public utility shall not file with the Commissionanother general rate application until all pending general rate applicationsfiled by that public utility have been decided by the Commission unless, afterapplication and hearing, the Commission determines that a substantial financialemergency would exist if the public utility is not permitted to file anothergeneral rate application sooner. The provisions of this subsection do notprohibit the public utility from filing with the Commission, while a generalrate application is pending, an application to recover the increased cost ofpurchased fuel, purchased power, or natural gas purchased for resale pursuantto subsection 7 or an application to clear its deferred accounts pursuant tosubsection 9, if the public utility is otherwise authorized by those provisionsto file such an application.

7. A public utility may file an application to recoverthe increased cost of purchased fuel, purchased power, or natural gas purchasedfor resale once every 30 days. The provisions of this subsection do not applyto:

(a) An electric utility using deferred accountingpursuant to NRS 704.187; or

(b) A public utility which purchases natural gas forresale and which adjusts its rates on a quarterly basis between annual rateadjustment applications pursuant to subsection 8.

8. A public utility which purchases natural gas forresale must request approval from the Commission to adjust its rates on aquarterly basis between annual rate adjustment applications based on changes inthe public utilitys recorded costs of natural gas purchased for resale. If theCommission approves such a request:

(a) The public utility shall file written notice withthe Commission before the public utility makes a quarterly rate adjustmentbetween annual rate adjustment applications. A quarterly rate adjustment is notsubject to the requirements for notice and a hearing pursuant to NRS 703.320 or the requirements for aconsumer session pursuant to subsection 1 of NRS704.069.

(b) The public utility shall provide written notice ofeach quarterly rate adjustment to its customers by including the written noticewith a customers regular monthly bill. The public utility shall beginproviding such written notice to its customers not later than 30 days after thedate on which the public utility files its written notice with the Commissionpursuant to paragraph (a). The written notice that is included with acustomers regular monthly bill:

(1) Must be printed separately on fluorescent-coloredpaper and must not be attached to the pages of the bill; and

(2) Must include the following:

(I) The total amount of the increase ordecrease in the public utilitys revenues from the rate adjustment, stated indollars and as a percentage;

(II) The amount of the monthly increase ordecrease in charges for each class of customer or class of service, stated indollars and as a percentage;

(III) A statement that customers may sendwritten comments or protests regarding the rate adjustment to the Commission;and

(IV) Any other information required by theCommission.

(c) The public utility shall file an annual rateadjustment application with the Commission. The annual rate adjustmentapplication is subject to the requirements for notice and a hearing pursuant toNRS 703.320 and the requirements for aconsumer session pursuant to subsection 1 of NRS704.069.

(d) The proceeding regarding the annual rate adjustmentapplication must include a review of each quarterly rate adjustment and areview of the transactions and recorded costs of natural gas included in eachquarterly rate adjustment and the annual rate adjustment application. There isno presumption of reasonableness or prudence for any quarterly rate adjustmentor for any transactions or recorded costs of natural gas included in anyquarterly rate adjustment or the annual rate adjustment application, and thepublic utility has the burden of proving reasonableness and prudence in theproceeding.

(e) The Commission shall not allow the public utilityto recover any recorded costs of natural gas which were the result of anypractice or transaction that was unreasonable or was undertaken, managed orperformed imprudently by the public utility, and the Commission shall order thepublic utility to adjust its rates if the Commission determines that anyrecorded costs of natural gas included in any quarterly rate adjustment or theannual rate adjustment application were not reasonable or prudent.

9. Except as otherwise provided in subsection 10 andsubsection 5 of NRS 704.100, if anelectric utility using deferred accounting pursuant to NRS 704.187 files an application to clearits deferred accounts and to change one or more of its rates based upon changesin the costs for purchased fuel or purchased power, the Commission, after apublic hearing and by an appropriate order:

(a) Shall allow the electric utility to clear itsdeferred accounts by refunding any credit balance or recovering any debitbalance over a period not to exceed 3 years, as determined by the Commission.

(b) Shall not allow the electric utility to recover anydebit balance, or portion thereof, in an amount that would result in a rate ofreturn during the period of recovery that exceeds the rate of return authorizedby the Commission in the most recently completed rate proceeding for theelectric utility.

10. Before allowing an electric utility to clear itsdeferred accounts pursuant to subsection 9, the Commission shall determinewhether the costs for purchased fuel and purchased power that the electricutility recorded in its deferred accounts are recoverable and whether therevenues that the electric utility collected from customers in this State forpurchased fuel and purchased power are properly recorded and credited in itsdeferred accounts. The Commission shall not allow the electric utility torecover any costs for purchased fuel and purchased power that were the resultof any practice or transaction that was undertaken, managed or performedimprudently by the electric utility.

11. If an electric utility files an application toclear its deferred accounts pursuant to subsection 9 while a general rateapplication is pending, the electric utility shall:

(a) Submit with its application to clear its deferredaccounts information relating to the cost of service and rate design; and

(b) Supplement its general rate application with thesame information, if such information was not submitted with the general rateapplication.

12. A utility facility identified in a 3-year plansubmitted pursuant to NRS 704.741 andaccepted by the Commission for acquisition or construction pursuant to NRS 704.751 and the regulations adoptedpursuant thereto shall be deemed to be a prudent investment. The utility mayrecover all just and reasonable costs of planning and constructing such afacility.

13. A PAR carrier may, in accordance with this sectionand NRS 704.100, file with theCommission a request to approve or change any schedule to provide volume orduration discounts to rates for telecommunication service for an offering madeto all or any class of business customers. The Commission may conduct a hearingrelating to the request, which must occur within 45 days after the date therequest is filed with the Commission. The request and schedule shall be deemedapproved if the request and schedule are not disapproved by the Commissionwithin 60 days after the date the Commission receives the request.

14. As used in this section:

(a) Electric utility has the meaning ascribed to itin NRS 704.187.

(b) Electric utility that primarily serves denselypopulated counties has the meaning ascribed to it in NRS 704.187.

(c) Electric utility that primarily serves lessdensely populated counties has the meaning ascribed to it in NRS 704.187.

(d) PAR carrier has the meaning ascribed to it in NRS 704.68942.

[Part 14:109:1919; A 1933, 228; 1931 NCL 6113](NRSA 1969, 998; 1975, 1451, 1559; 1977, 482; 1979, 1106, 1719; 1983, 240; 1985,636, 1127; 1989, 1012, 1835; 1991, 776; 1997, 1908; 1999, 3261; 2001, 347, 3247; 2003, 3039; 2005, 1277, 1920)

NRS 704.120 Commissionmay substitute just and reasonable rates, regulations, practices or servicesafter investigation and hearing.

1. If, upon any hearing and after due investigation,the rates, tolls, charges, schedules or joint rates shall be found to beunjust, unreasonable or unjustly discriminatory, or to be preferential, orotherwise in violation of any of the provisions of this chapter, the Commissionshall have the power to fix and order substituted therefor such rate or rates,tolls, charges or schedules as shall be just and reasonable.

2. If it shall in like manner be found that anyregulation, measurement, practice, act or service complained of is unjust,unreasonable, insufficient, preferential, unjustly discriminatory or otherwisein violation of the provisions of this chapter, or if it be found that theservice is inadequate, or that any reasonable service cannot be obtained, theCommission shall have the power to substitute therefor such other regulations,measurements, practices, service or acts and make such order relating theretoas may be just and reasonable.

3. When complaint is made of more than one rate,charge or practice, the Commission may, in its discretion, order separatehearings upon the several matters complained of and at such times and places asit may prescribe.

4. No complaint shall at any time be dismissed becauseof the absence of direct damage to the complainant.

5. The Commission may at any time, upon its ownmotion, investigate any of the rates, tolls, charges, rules, regulations,practices and service, and, after a full hearing as above provided, by order,make such changes as may be just and reasonable, the same as if a formalcomplaint had been made.

[27:109:1919; 1919 RL p. 3163; NCL 6127]

NRS 704.130 Rateseffective and regulations enforceable until modified by Commission or court.

1. All rates, charges, classifications and joint ratesfixed by the Commission are in force, and are prima facie lawful, from the dateof the order until changed or modified by the Commission, or pursuant to NRS 703.373 to 703.376, inclusive.

2. All regulations, practices and service prescribedby the Commission must be enforced and are prima facie reasonable unless suspendedor found otherwise in an action brought for the purpose, pursuant to theprovisions of NRS 703.373 to 703.376, inclusive, or until changed ormodified by the Commission itself upon satisfactory showing made, or by thepublic utility by filing a bond pursuant to NRS703.374.

[32:109:1919; A 1955, 407](NRS A 1983, 968; 1997,1909)

NRS 704.140 Freeor reduced rates for transportation unlawful; exceptions; penalty.

1. It is unlawful for any person engaged in businessas a public utility to give or furnish to any state, district, county ormunicipal officer of this State, or to any person other than those namedherein, any pass, frank, free or reduced transportation, or for any state,district, county or municipal officer to accept any pass, frank, free orreduced transportation.

2. This section does not prevent the carriage, storageor hauling of property free or at reduced rates for the United States, theState of Nevada, or any political subdivision thereof, for charitable purposes.

3. This chapter does not prohibit a public utilityfrom giving free or reduced rates for transportation of:

(a) Its own officers, Commission agents, employees,attorneys, physicians and surgeons and members of their families, and pensionedand disabled ex-employees, their minor children or dependents, or witnessesattending any legal investigation in which such carrier is interested.

(b) Inmates of hospitals or charitable institutions andpersons over 65 years of age.

(c) Persons who are physically handicapped or mentallyhandicapped and who present a written statement from a physician to thateffect.

(d) Persons injured in accidents or wrecks andphysicians and nurses attending such persons.

(e) Persons providing relief in cases of commondisaster, or for contractors and their employees, in carrying out theircontract with such carrier.

(f) Peace officers when on official duty.

(g) Attendants of livestock or other property requiringthe care of an attendant, including return passage to the place of shipment, ifthere is no discrimination among such shippers of a similar class.

(h) Employees of other carriers subject to regulationin any respect by the Commission, or for the officers, agents, employees,attorneys, physicians and surgeons of such other carriers, and the members oftheir families.

4. This chapter does not prohibit public utilitiesfrom giving reduced rates for transportation to:

(a) Indigent, destitute or homeless persons, when underthe care or responsibility of charitable societies, institutions or hospitals,and the necessary agents employed in such transportation.

(b) Students of institutions of learning.

5. Employees, as used in this section, includesfurloughed, pensioned and superannuated employees, and persons who have becomedisabled or infirm in the service of any such carrier, and persons travelingfor the purpose of entering the service of any such carrier.

6. Any person violating the provisions of this sectionshall be punished by a fine of not more than $500.

[21:109:1919; A 1928, 21; 1931, 18; 1947, 74; 1943NCL 6121](NRS A 1967, 655; 1969, 1157; 1971, 726; 1979, 203)

GENERAL STANDARDS AND PRACTICES

NRS 704.143 Physicallyor mentally handicapped person entitled to full and equal enjoyment offacilities for public transportation; unlawful denial of services andfacilities.

1. All physically or mentally handicapped persons areentitled to the full and equal enjoyment of the facilities of any commoncarrier or other means of public conveyance and transportation operating withinthis state.

2. It is unlawful for any person, firm, partnership orcorporation to deny any of the privileges granted by subsection 1.

3. It is unlawful for any common carrier or othermeans of public conveyance or transportation operating within this state, todeny the equal enjoyment of its services and facilities to a physicallyhandicapped person by the arbitrary, capricious or unreasonable interference,direct or indirect, with the use of aids and appliances used by such physicallyhandicapped person for purposes of mobility.

(Added to NRS by 1969, 587; A 1971, 1058; 1979, 204)

NRS 704.145 Unlawfulto refuse service of public transportation or charge additional fee or depositto certain persons accompanied by service animal or service animal in training;remedies.

1. It is unlawful for a common carrier or other meansof public conveyance or transportation operating in this State to:

(a) Refuse service to a person with a disabilitybecause he is accompanied by a service animal;

(b) Refuse service to a person who is training aservice animal because he is accompanied by the service animal in training; or

(c) Charge an additional fee or a deposit for a serviceanimal or service animal in training.

2. This section does not relieve a person with adisability who is accompanied by a service animal or a person who trains aservice animal from liability for damage which may be caused by the serviceanimal or service animal in training.

3. Persons with disabilities accompanied by serviceanimals on common carriers or other means of public conveyance or transportationoperating in this State are subject to the same conditions and limitations thatapply to persons without disabilities who are not so accompanied.

4. A common carrier or other means of publicconveyance or transportation operating in this State that violates any of theprovisions of subsection 1 is civilly liable to the person against whom theviolation was committed for:

(a) Actual damages;

(b) Such punitive damages as may be determined by ajury, or by a court sitting without a jury, which must not be more than threetimes the amount of actual damages, except that in no case may the punitivedamages be less than $750; and

(c) Reasonable attorneys fees as determined by thecourt.

5. The remedies provided in this section arenonexclusive and are in addition to any other remedy provided by law,including, without limitation, any action for injunctive or other equitablerelief available to the aggrieved person or brought in the name of the peopleof this State or the United States.

6. As used in this section:

(a) Service animal has the meaning ascribed to it in NRS 426.097.

(b) Service animal in training has the meaningascribed to it in NRS 426.099.

(Added to NRS by 1969, 587; A 1971, 1059; 1973, 1499;1981, 1921; 1987, 825; 1995, 1996; 1997, 76; 2003, 2639, 2978; 2005, 634)

NRS 704.150 Dutyof connecting railroad to transfer car for just and reasonable charge. All railroad corporations whose tracks connect shalltransfer cars reciprocally from one railroad to the other upon demand ofshippers or of the railroad concerned at just and reasonable charges to befixed by the Commission.

[19:109:1919; 1919 RL p. 3160; NCL 6119]

NRS 704.160 Dutyof railroad to provide and maintain depots, stations and other facilities.

1. Every railroad shall provide and maintain adequatedepots and depot buildings at its regular stations and establish new stationswherever required, for the accommodation of passengers. Depot buildings shallbe kept clean, well lighted and warm for the comfort and accommodation of thetraveling public.

2. All railroads shall keep and maintain adequate andsuitable freight depots, wherever needed, buildings, switches and sidetracksfor the receiving, handling and delivering of freight transported or to betransported by such railroad.

[22:109:1919; 1919 RL p. 3161; NCL 6122]

NRS 704.170 Dutyof railroad to furnish freight cars to shippers; regulations.

1. Every railroad shall, when within its power to doso, and upon reasonable notice, furnish suitable cars to any and all personswho may apply therefor, for the transportation of any and all kinds of freightin carload lots. In case of insufficiency of cars at any time to meet allrequirements, such cars as are available shall be distributed among the severalapplicants therefor in proportion to their respective immediate requirementswithout discrimination between shippers or competitive or noncompetitiveplaces. Preference may be given to shipments of livestock and perishableproperty.

2. The Commission shall have the power to enforcereasonable regulations for furnishing cars to shippers, and switching the same,and for the loading and unloading thereof, and the weighing of the cars andfreight offered for shipment over any line of railroad.

[23:109:1919; 1919 RL p. 3161; NCL 6123]

NRS 704.175 Compliancewith standards for electrical construction; inspection; exemption.

1. Except as provided in subsection 2, any publicutility which installs or modifies any electrical supply line in any buildingor facility which it owns or operates, if the building or facility is open andaccessible to the general public, shall perform such installation ormodification as if the National Electrical Code adopted by the National FireProtection Association applied to such work, and any local government whichregulates electrical construction shall inspect such work within itsjurisdiction for compliance with this section.

2. Communication equipment and related apparatus areexempted from the provisions of subsection 1 only if the equipment andapparatus is owned, installed, operated and maintained by a public utilitywhich provides communication services under the jurisdiction of the Commission.

(Added to NRS by 1977, 1493)

NRS 704.183 Examinationof certain public utilities.

1. The Commission may order an examination of thecondition and management of any public utility under its jurisdiction which isa telephone company, electric light, heat and power company or a natural gascompany.

2. The Commission and the public utilities shallestablish, and revise annually, a list of not less than 20 persons qualified toconduct such examinations.

3. If an examination is ordered:

(a) The public utility shall select a person to conductthe examination from such list; and

(b) The Commission, the public utility and the personselected shall determine the manner, scope and cost of the examination and the contentand form of reports issued at the conclusion of the examination.

4. Except where the Commission, after a hearing,determines that an examination of a public utility is in the public interest,the Commission shall not order an examination if a prior examination has beenconducted within the preceding 5 years.

5. The costs of an examination are allowable expensesof the public utility for the purpose of rate making.

(Added to NRS by 1977, 1375; A 1985, 2050)

NRS 704.1835 Commissionrequired to adopt or amend regulations relating to termination of utilityservice for gas, water or electricity.

1. For the purposes of protecting the health ofresidential customers who receive gas, water or electricity from publicutilities, the Commission shall adopt or amend regulations that:

(a) Establish the criteria that will be used todetermine when a public utility is required to postpone its termination ofutility service to the residence of a residential customer who has failed topay for such service. Such criteria may be based in part upon the residentialcustomers ability to pay.

(b) Require a public utility to postpone itstermination of utility service to the residence of a residential customer whohas failed to pay for such service if the residential customer satisfies thecriteria established by the Commission and termination of the utility serviceis reasonably likely to threaten the health of an occupant of the residence ofthe residential customer.

2. In addition to the regulations adopted pursuant tosubsection 1, for the purposes of regulating public utilities that provide gas,water or electricity to landlords who pay for the utility service and whodistribute or resell the gas, water or electricity to one or more residentialtenants, the Commission shall adopt or amend regulations to require a publicutility to use its best efforts to post, in a conspicuous location, notice ofthe intent of the public utility to terminate utility service because thelandlord has failed to pay for such service. Such notice must providesufficient information to allow residential tenants or their occupants tocontact the public utility if termination of the utility service is reasonablylikely to threaten the health of an occupant of the residence of a residentialtenant.

3. A public utility shall not terminate utilityservice for gas, water or electricity without complying with the regulationsadopted by the Commission pursuant to this section.

4. As used in this section:

(a) Gas includes, without limitation, liquefiedpetroleum gas and natural gas.

(b) Landlord means a landlord who is subject, inwhole or in part, to the provisions of chapter118A or 118B of NRS.

(Added to NRS by 2001, 3242)

DEFERRED ACCOUNTING

NRS 704.185 Useof deferred accounting by certain natural gas utilities; procedure; limitations.

1. Except as otherwise provided in subsection 8 of NRS 704.110, a public utility whichpurchases natural gas for resale may record upon its books and records indeferred accounts all cost increases or decreases in the natural gas purchasedfor resale. Any public utility which uses deferred accounting to reflectchanges in costs of natural gas purchased for resale shall include in itsannual report to the Commission a statement showing the allocated rate ofreturn for each of its operating departments in Nevada which uses deferredaccounting.

2. If the rate of return for any department usingdeferred accounting pursuant to subsection 1 is greater than the rate of returnallowed by the Commission in the last rate proceeding, the Commission shallorder the utility which recovered any costs of natural gas purchased for resalethrough rates during the reported period to transfer to the next energyadjustment period that portion of such recovered amounts which exceeds theauthorized rate of return.

3. A public utility which purchases natural gas forresale may request approval from the Commission to record upon its books andrecords in deferred accounts any other cost or revenue which the Commissiondeems appropriate for deferred accounting and which is not otherwise subject tothe provisions of subsections 1 and 2. If the Commission approves such arequest, the Commission shall determine the appropriate requirements forreporting and recovery that the public utility must follow with regard to eachsuch deferred account.

(Added to NRS by 1975, 1560; A 1979, 1108; 1999, 3263; 2003, 1257; 2005, 1924)

NRS 704.187 Useof deferred accounting by certain electric utilities; procedure; limitations.

1. Except as otherwise provided in section 36 ofchapter 16, Statutes of Nevada 2001, beginning on March 1, 2001, an electricutility that purchases fuel or power shall use deferred accounting by recordingupon its books and records in deferred accounts all increases and decreases incosts for purchased fuel and purchased power that are prudently incurred by theelectric utility.

2. An electric utility using deferred accounting shallinclude in its annual report to the Commission a statement showing, for theperiod of recovery, the allocated rate of return for each of its operatingdepartments in this State using deferred accounting. If, during the period ofrecovery, the rate of return for any operating department using deferredaccounting is greater than the rate of return authorized by the Commission inthe most recently completed rate proceeding for the electric utility, theCommission shall order the electric utility that recovered costs for purchasedfuel or purchased power through its rates during the reported period totransfer to the next energy adjustment period that portion of the amountrecovered by the electric utility that exceeds the authorized rate of return.

3. Except as otherwise provided in this section, anelectric utility using deferred accounting shall file an annual application toclear its deferred accounts based on the following schedule:

(a) An electric utility that primarily serves lessdensely populated counties shall file an annual application to clear itsdeferred accounts on December 1, 2005, and in December of each year thereafteron a date specified by the Commission.

(b) An electric utility that primarily serves denselypopulated counties shall file an annual application to clear its deferredaccounts on January 17, 2006, and in January of each year thereafter on a datespecified by the Commission.

4. An electric utility using deferred accounting mayfile a semiannual application to clear its deferred accounts if the net changein revenues necessary to clear its deferred accounts for the reported period ismore than 5 percent of the total revenues generated by the electric utilityduring that period from its rates for purchased fuel and purchased power mostrecently authorized by the Commission.

5. As used in this section:

(a) Application to clear its deferred accounts meansan application filed by an electric utility pursuant to this section andsubsection 9 of NRS 704.110.

(b) Costs for purchased fuel and purchased powermeans all costs which are prudently incurred by an electric utility and whichare required to purchase fuel, to purchase capacity and to purchase energy. Theterm does not include any costs that the Commission determines are not recoverablepursuant to subsection 10 of NRS 704.110.

(c) Electric utility means any public utility orsuccessor in interest that:

(1) Is in the business of providing electricservice to customers;

(2) Holds a certificate of public convenienceand necessity issued or transferred pursuant to this chapter; and

(3) In the most recently completed calendar yearor in any other calendar year within the 7 calendar years immediately precedingthe most recently completed calendar year, had a gross operating revenue of$250,000,000 or more in this State.

The termdoes not include a cooperative association, nonprofit corporation, nonprofitassociation or provider of electric service which is declared to be a publicutility pursuant to NRS 704.673 andwhich provides service only to its members.

(d) Electric utility that primarily serves denselypopulated counties means an electric utility that, with regard to theprovision of electric service, derives more of its annual gross operatingrevenue in this State from customers located in counties whose population is400,000 or more than it does from customers located in counties whose populationis less than 400,000.

(e) Electric utility that primarily serves lessdensely populated counties means an electric utility that, with regard to theprovision of electric service, derives more of its annual gross operatingrevenue in this State from customers located in counties whose population isless than 400,000 than it does from customers located in counties whosepopulation is 400,000 or more.

(Added to NRS by 2001, 345; A 2005, 1279, 1924)

REPORTS AND RECORDS

NRS 704.190 Reportand investigation of accident; regulations; forms; public inspection of report;inadmissibility of report in action for damages.

1. Every public utility operating in this State shall,whenever an accident occurs in the conduct of its operation causing death, giveprompt notice thereof to the Commission, in such manner and within such time asthe Commission may prescribe. If, in its judgment, the public interest requiresit, the Commission may cause an investigation to be made forthwith of anyaccident, at such place and in such manner as the Commission deems best.

2. Every such public utility shall report to theCommission, at the time, in the manner and on such forms as the Commission byits printed rules and regulations prescribes, all accidents happening in thisState and occurring in, on or about the premises, plant, instrumentality orfacility used by any such utility in the conduct of its business.

3. The Commission shall adopt all reasonable rules andregulations necessary for the administration and enforcement of this section.The rules and regulations must require that all accidents required to bereported pursuant to this section be reported to the Commission at least onceevery calendar month by such officer or officers of the utility as theCommission directs.

4. The Commission shall adopt and utilize all accidentreport forms, which must be so designed as to provide a concise and accuratereport of the accident. The report must show the true cause of the accident.The accident report forms adopted for the reporting of railroad accidents must,as near as practicable, be the same in design as the railroad accident reportforms provided and used by the Surface Transportation Board.

5. If any accident is reported to the Commission bythe utility as being caused by or through the negligence of an employee andthereafter the employee is absolved from such negligence by the utility andfound not to be responsible for the accident, that fact must be reported by theutility to the Commission.

6. Each accident report required to be made by apublic utility pursuant to this section must be filed in the office of theCommission and there preserved. Each accident report required to be made by apublic utility pursuant to this chapter and each report made by the Commissionpursuant to its investigation of any accident:

(a) Except as otherwise provided in subsection 2 of NRS 703.190, must be open to publicinspection; and

(b) Notwithstanding any specific statute to thecontrary, must not, in whole or in part, be admitted as evidence or used forany purpose in any suit or action for damages arising out of any mattermentioned in:

(1) The accident report required to be made bythe public utility; or

(2) The report made by the Commission pursuantto its investigation.

[34:109:1919; A 1937, 404; 1931 NCL 6134](NRS A1967, 1384; 1997, 1630; 2001, 1764)

NRS 704.195 Recordingof telephone call concerning emergency or service outage; disclosure.

1. A public utility may record any telephone call:

(a) Concerning an emergency; or

(b) Relating to a service outage,

if thetelephone call is received on a line specified for such telephone calls, thenumber of which is published in an appropriate telephone directory. Thepublication must contain a notice to callers that a telephone call received onthat line concerning an emergency or relating to a service outage is subject torecording.

2. A telephone call made pursuant to subsection 1 isnot a private conversation and the existence, content, substance, purport,effect or meaning of the conversation recorded may be disclosed by any person.

3. As used in this section, record means theacquisition of the contents of a wire communication through the use of arecording device.

(Added to NRS by 1989, 657)

NRS 704.197 Publicutility to provide name and address of person listed in records of utility uponrequest of public administrator or deputy; immunity for disclosure made in goodfaith.

1. A public administrator or deputy designated by himmay submit a written request to a public utility for the name and address of aperson listed in the records of the public utility if the information isnecessary to assist the public administrator in carrying out his dutiespursuant to chapter 253 of NRS.

2. Upon receipt of a written request pursuant tosubsection 1, a public utility shall disclose the name and address of theperson listed in the records of customers of the public utility to the publicadministrator or a deputy designated by him.

3. A disclosure made in good faith pursuant tosubsection 1 does not give rise to any action for damages for the disclosure ofthe name and address of a customer by a public utility.

(Added to NRS by 1999, 921)

NRS 704.201 Investigationby law enforcement agency: Subpoena for name and address of person listed inrecords of customers.

1. To further a criminal or civil investigation, thechief executive officer of a law enforcement agency of this State or a commandofficer designated by him may issue a subpoena to a public utility for the nameand address of a person listed in the records of the customers of the publicutility.

2. The subpoena must:

(a) If available, contain the social security number ofthe person about whom the subpoena is made;

(b) Contain a statement that the subpoena is made tofurther a criminal or civil investigation being conducted by the agency; and

(c) Be signed by the chief executive officer of the lawenforcement agency or the command officer he has designated.

3. As used in this section, command officer means anofficer in charge of a department, division or bureau of the law enforcementagency.

(Added to NRS by 1989, 803; A 1991, 147; 1997, 102)

NRS 704.202 Investigationby law enforcement agency: Disclosure of name and address of person listed inrecords of customers.

1. Upon receipt of a subpoena by a law enforcementagency pursuant to NRS 704.201, a publicutility shall disclose the name and address of the person listed in the recordsof customers of the public utility to the agency.

2. The public utility may charge a reasonable fee forany administrative expense related to the disclosure.

3. A disclosure made in good faith pursuant tosubsection 1 does not give rise to any action for damages for the disclosure ofthe name and address of a customer by a public utility.

(Added to NRS by 1989, 803; A 1997, 102)

NRS 704.206 Provisionof list of customers for district judge or jury commissioner; reimbursement forcost of compiling list; immunity from liability for disclosure of list.

1. In a county whose population is less than 400,000,a public utility, other than a public utility furnishing telephone services,shall provide a list of the names and addresses of the customers of the publicutility upon the request of any:

(a) District judge; or

(b) Jury commissioner,

for use inthe selection of jurors.

2. The court or jury commissioner who requests thelist of customers shall reimburse the public utility for the reasonable cost ofcompiling the list.

3. A disclosure made in good faith pursuant tosubsection 1 does not give rise to any action for damages for the disclosure ofthe name and address of a customer by a public utility.

(Added to NRS by 1989, 2041)(Substituted in revisionfor NRS 704.147)

OTHER STANDARDS AND PRACTICES

NRS 704.210 Powersof Commission: Adoption of regulations; supervision and regulation of publicutilities. The Commission may:

1. Adopt necessary and reasonable regulationsgoverning the procedure, administration and enforcement of the provisions ofthis chapter, subject to the provisions of NRS416.060.

2. Prescribe classifications of the service of allpublic utilities and, except as otherwise provided in NRS 704.075, fix and regulate the ratestherefor.

3. Fix just and reasonable charges for transportationof all intrastate freight and passengers and the rates and tolls for the use oftelephone lines within the State.

4. Adopt just and reasonable regulations for theapportionment of all joint rates and charges between public utilities.

5. Consider the need for the conservation of energywhen acting pursuant to the provisions of subsections 1, 2 and 3.

[17:109:1919; 1919 RL p. 3159; NCL 6116](NRS A1969, 1158; 1977, 552, 884; 1985, 1129; 1997, 1910)

NRS 704.215 Powersof Commission: Adoption of certain rules, regulations and rates by reference. The Commission may adopt by reference all or part of anyappropriate:

1. Rule, regulation or rate related totelecommunications services issued by an agency of the Federal Government or ofany state.

2. Regulation proposed by the National Association ofRegulatory Utility Commissioners or code issued by a national or stateprofessional society.

A copy ofeach such rule, regulation, rate schedule related to telecommunicationsservices or code so adopted must be included with the regulations filed withthe Secretary of State.

(Added to NRS by 1969, 1000; A 1991, 515)

NRS 704.220 Powersof Commission: Fixing standards; examination and testing of product or service.

1. The Commission may, when necessary:

(a) Ascertain and prescribe for each kind of publicutility adequate, convenient and serviceable standards for the measurement ofquality, pressure, voltage or other conditions pertaining to the supply of theproduct or service rendered by any public utility; and

(b) Prescribe reasonable regulations for theexamination and testing of such products or service and for the measurementthereof.

2. Any consumer, user or person served may have thequality or quantity of the product or the character of any service rendered byany public utility tested upon the payment of fees fixed by the Commission,which fees, however, shall be paid by the public utility and repaid to thecomplaining party if the quality or quantity of the product or the character ofthe service be found by the Commission defective or insufficient in a degree tojustify the demand for testing; or the Commission may apportion the feesbetween the parties as justice may require.

[Part 13:109:1919; A 1931, 320; 1955, 421]

NRS 704.223 Authorizationof purchase or transmission of electricity to certain businesses to reduceoverall cost of electricity to business.

1. If a business with a new industrial load has beencertified by the Commission on Economic Development pursuant to NRS 231.139, the Public Utilities Commissionof Nevada may authorize a public utility that furnishes electricity for the businessto purchase or transmit a portion of the electricity provided to the businessto reduce the overall cost of the electricity to the business. The purchases ofelectricity may be made by the business with the new industrial load, byagreement between the public utility and the business or by the public utilityon behalf of the business, and must be made in accordance with such rates,terms and conditions as are established by the Public Utilities Commission ofNevada.

2. If additional facilities are determined by theaffected utility to be required as the result of authorization granted pursuantto subsection 1, the facilities must be constructed, owned and operated by theaffected utility. The business must agree as a condition to the authorizationgranted pursuant to subsection 1 to continue its business in operation inNevada for 30 years. The agreement must require appropriate security for thereimbursement of the utility for the remaining portion of the value of thefacilities which has not been depreciated by the utility and will not bemitigated by use of the facilities for other customers in the event that thebusiness, or its successor in interest, does not remain in operation for 30years.

3. Nothing in this section authorizes the FederalEnergy Regulatory Commission to order the purchase or transmittal ofelectricity in the manner described in subsection 1.

4. All of the rules, regulations and statutespertaining to the Public Utilities Commission of Nevada and public utilitiesapply to actions taken pursuant to this section.

5. Any authorization granted by the Public UtilitiesCommission of Nevada pursuant to this section must include such terms andconditions as the Commission determines are necessary to ensure that the ratesor charges assessed to other customers of the public utility do not subsidizethe cost of providing service to the business.

(Added to NRS by 1993, 817; A 1997, 1910)

NRS 704.225 Regulationsrequiring lower rates for electricity for irrigation pumps: Interruptibleservice. The Commission shall by regulationrequire each public utility which furnishes electricity to provide lower ratesfor electricity for irrigation pumps under a schedule which:

1. Will be applied:

(a) From March 1 to October 31, inclusive; and

(b) If the customer concedes to the utility a right tointerrupt services to the customers irrigation pumps under conditionsestablished by the utility and approved by the Commission.

2. Provides for a rate for interruptible service perkilowatt-hour of electricity used. The rate must not exceed the lowest chargeper kilowatt-hour offered by the public utility under any of its rate schedulesapplicable to its residential, commercial or industrial customers in Nevada. Nocharges may be included for minimum billings or costs relating to stand-by,customers or demand.

(Added to NRS by 1981, 1152; A 1987, 22)

NRS 704.230 Installationand use of water meters; separate rate for residential users. [Effective untilcertain conditions concerning agreement between Sierra Pacific Power Companyand Pyramid Lake Paiute Tribe have been met.]

1. Except as otherwise provided in this section or inany special law for the incorporation of a city, it is unlawful for any publicutility, for any purpose or object whatever, in any city or town containingmore than 7,500 inhabitants, to install, operate or use, within such city ortown, any mechanical water meters or similar mechanical device, to measure thequantity of water delivered to residential water users.

2. A public utility which furnishes water shall filewith the Commission a schedule establishing a separate individual and jointrate or charge for residential users who have installed water meters or similardevices to measure the consumption of water.

3. A water meter or similar device may be installed tomeasure the consumption of water by a residential customer:

(a) With the consent of the customer; and

(b) To obtain information concerning a representativesample of residential customers to determine what benefits, if any, would bederived from the installation and use of water meters for residential customersgenerally.

Unless theresidential customer has agreed, in writing, to pay the separate rate, thepublic utility shall charge the residential customer for whom a meter isinstalled the same amount for water used as if no meter had been installed.

4. A water meter or similar device may be installed tomeasure the quantity of water delivered and determine the charge to residentialusers of water if:

(a) The owner of the property on which it is installedconsents in writing to the installation, operation and use of the device; and

(b) The written consent is recorded with the countyrecorder of the county in which the property is located.

The writtenconsent binds any successor in interest to that property to the provisionsthereof.

5. Every newly constructed residential building whichis occupied for the first time after July 1, 1988, must be equipped with awater meter.

6. This section does not apply to cities and townsowning and operating municipal waterworks, or to cities and towns located in acounty whose population is 400,000 or more.

[Part 13:109:1919; A 1931, 320; 1955, 421](NRS A1961, 101; 1967, 357; 1969, 1545; 1977, 1402; 1979, 559; 1985, 656; 1989, 1934)

NRS 704.230 Installation of water meters requiredby certain residential buildings; exceptions. [Effective when certainconditions concerning agreement between Sierra Pacific Power Company andPyramid Lake Paiute Tribe have been met.]

1. Every newly constructed residential building whichis occupied for the first time after July 1, 1988, must be equipped with awater meter.

2. Subsection 1 does not apply to cities and townsowning and operating municipal waterworks, or to cities and towns located in acounty whose population is 400,000 or more.

[Part 13:109:1919; A 1931, 320; 1955, 421](NRS A1961, 101; 1967, 357; 1969, 1545; 1977, 1402; 1979, 559; 1985, 656; 1989, 1394,1934, 1937, effective when certain conditions concerning agreement betweenSierra Pacific Power Company and Pyramid Lake Paiute Tribe have been met)

NRS 704.235 Useby local government of facilities of public utility for treatment,transportation or exchange of water.

1. The Commission may, upon application of a localgovernment which provides water services, issue an order directing a publicutility which has facilities for the treatment and transmission of water toallow the local government to use the facilities to treat, transport orexchange water, or any combination thereof, to service connections not servedby the public utility. The order may require the public utility to doeverything reasonably necessary, as determined by the Commission, to treat,transport or exchange water. The Commission shall determine the rates andcharges to be paid by the local government to the public utility for theservices provided. In making this determination, the Commission shall considerall direct and indirect costs attributable to the treatment, transportation orexchange of water. The order may impose conditions and requirements on thelocal government and public utility to ensure that customers of the utilitycontinue to receive at just and reasonable rates, an adequate supply of water.

2. A local government which files an application withthe Commission pursuant to subsection 1 shall file a copy of that applicationwith each city planning commission of an affected incorporated city and withthe regional planning commission of an affected county, if one exists, for itsreview and comment.

3. The provisions of this section do not preclude anylocal government from bringing an action pursuant to chapter 37 of NRS for the same purpose for whicha local government is allowed to use the facilities of a public utilitypursuant to this section.

(Added to NRS by 1989, 726)

NRS 704.240 Powersof Commission: Purchase of apparatus for examinations and tests; entry onpremises to make examination and test.

1. The Commission may, in its discretion, purchasesuch materials, apparatus and standard measuring instruments for suchexamination and tests as it deems necessary.

2. The Commission may enter upon any premises occupiedby any public utility for the purpose of making the examination and testsprovided for in this chapter and set up and use on the premises any necessaryapparatus and appliances and occupy reasonable space therefor.

3. Any public utility refusing to allow theexamination to be made as herein provided is subject to the penaltiesprescribed in NRS 703.380.

[Part 13:109:1919; A 1931, 320; 1955, 421](NRS A1981, 1598)

NRS 704.250 Powersof Commission: Standards for maintenance, use and operation of electric poles,wires, cables and appliances. The Commissionis authorized and directed to prescribe the standards for the maintenance, useand operation of electric poles, wires, cables and appliances of all publicutilities within the State engaged in the business of furnishing electricpower, light and energy.

[Part 13:109:1919; A 1931, 320; 1955, 421]

NRS 704.260 Powersof Commission: Requiring repair and construction of property and use ofappliances for safety; regulations. TheCommission shall have power, in the interest of safety or service, afterhearing:

1. To determine and order required and necessaryrepairs, reinforcements, construction and connection of property, lines,equipment, appliances, buildings, tracks and all property used or useful inpublic utility service.

2. To order the use of safety appliances in the interestof the public.

3. To make and enforce necessary rules andregulations.

[Part 18:109:1919; A 1925, 243; 1929, 73; NCL 6117](NRS A 1973, 1024)

NRS 704.280 Powersof Commission: Regulation of lines and tracks; regulations; safety devices. The Commission may:

1. Regulate the manner in which power, telephone andtelegraph lines, pipelines and the tracks of any street, steam or electricrailroad or other common carrier cross or connect with any other such lines orcommon carriers.

2. Prescribe such regulations and safety devices,respectively, as may be necessary for the purpose of securing adequate serviceand for the protection of the public.

[Part 18:109:1919; A 1925, 243; 1929, 73; NCL 6117](NRS A 1963, 813; 1981, 155)

NRS 704.285 Violationof law governing interception or disclosure of communications made by wire orradio: Investigation; hearing; orders to cease and desist.

1. The Commission, upon its own information orknowledge or upon a complaint by any person, firm, partnership or corporationthat any public utility is acting in violation of the provisions of NRS 179.410 to 179.515, inclusive, or NRS 200.610 to 200.690, inclusive, or is knowinglyallowing another person to violate those provisions, shall proceed without noticeto make an investigation of the information or complaint.

2. If, after its investigation, the Commissiondetermines that there is probable cause to believe that the utility is actingin violation of the provisions of NRS179.410 to 179.515, inclusive, or NRS 200.610 to 200.690, inclusive, or allowing another toact in violation of those provisions, the Commission shall forthwith issue acease and desist order to the utility. The order is permanent unless theutility, within 20 days after receipt of the order, files a written request fora hearing with the Commission.

3. When a written request for a hearing is filedpursuant to subsection 2, the Commission shall conduct the hearing pursuant tothe provisions of NRS 703.320 to 703.370, inclusive.

4. If, as the result of a hearing, it is determinedthat the utility is acting in violation of the provisions of NRS 179.410 to 179.515, inclusive, or NRS 200.610 to 200.690, inclusive, or allowing another toact in violation of those provisions, the Commission shall issue a permanentcease and desist order and notify the district attorney of the county where theviolation occurred of its determination.

5. This section is applicable whether or not theutility involved is required to have a certificate of public convenience andnecessity from the Commission.

(Added to NRS by 1967, 958; A 1969, 999; 1973, 1750;1979, 247)

NRS 704.300 Railroadcrossings: Powers of Commission; payment of expenses.

1. After an investigation and hearing, which has beeninitiated either upon the Commissions own motion, or as the result of thefiling of a formal application or complaint by the Department ofTransportation, the board of county commissioners of any county, the town boardor council of any town or municipality, or any railroad company, the Commissionmay determine, and order for the safety of the traveling public:

(a) The elimination, alteration, addition or change ofa highway crossing or crossings over any railroad at grade, or above or belowgrade, including its approaches and surface.

(b) Changes in the method of crossing at grade, orabove or below grade.

(c) The closing of a crossing and the substitution ofanother therefor.

(d) The removal of obstructions to the public view inapproaching any crossing.

(e) Such other details of use, construction andoperation as may be necessary to make grade-crossing elimination, changes andbetterments for the protection of the public and the prevention of accidentseffective.

2. The Commission shall order that the cost of anyelimination, removal, addition, change, alteration or betterment so orderedmust be divided and paid in such proportion by the State, county, town ormunicipality and the railroad or railroads interested as is provided accordingto the circumstances occasioning the cost, in NRS704.305.

3. All costs incurred by reason of any hearing heldunder this section before the Commission, including but not limited topublication of notices, reporting, transcripts and rental of hearing room, mustbe apportioned 50 percent to the governmental unit or units affected and 50percent to the railroad or railroads.

[18A:109:1919; 1919 RL p. 3160; NCL 6118](NRS A1963, 813; 1971, 573; 1979, 1816)

NRS 704.305 Railroadcrossings: Apportionment of costs of construction, reconstruction andprotective devices; maintenance of surface.

1. The entire cost of a new grade crossing or a newgrade separation, including any automatic protection devices that may berequired, where no existing grade crossing located at or in the immediatevicinity of the new grade crossing or grade separation structure is eliminated,shall be apportioned to and borne by the governmental unit or units affected ifa governmental unit initiates the proceeding, or by the railroad or railroadsif the proceeding is initiated by a railroad.

2. Where a new grade separation will directly resultin the elimination of an existing grade crossing located at or in the immediatevicinity of the grade separation or an existing grade separation isreconstructed, 13 percent of the cost shall be apportioned to and borne by therailroad or railroads and the remainder of the cost shall be apportioned to andborne by the governmental unit or units affected. If a grade separationstructure provides either more highway lanes or space for more highway lanesthan are in place on the existing highway grade crossing being eliminated, therailroad share of cost shall be limited to 13 percent of the cost ofconstructing a grade separation structure having the same number of highwaylanes that were in place on the highway prior to construction of the gradeseparation structure.

3. Where automatic protection devices are added ormaterially altered, changed or improved at an existing grade crossing, 87percent of the cost of such added, altered, changed or improved automaticprotection devices shall be apportioned to and borne by the governmental unitor units affected and 13 percent of the cost shall be apportioned to and borneby the railroad or railroads.

4. The cost of maintaining any new, added or materiallyaltered, changed or improved grade crossing automatic protection devices andappurtenances shall be apportioned 50 percent to the governmental unit or unitsaffected and 50 percent to the railroad or railroads.

5. The maintenance of a new or reconstructed gradeseparation structure shall be performed by the governmental unit or unitsaffected, and the cost thereof shall be apportioned to and be borne by thegovernmental unit or units affected, except that the maintenance ofwaterproofing, ballast, ties, tracks and other railroad equipment shall beperformed by the railroad or railroads, and the cost of such maintenance shallbe apportioned to and borne by the railroad or railroads.

6. The railroad shall maintain at its expense thesurface of grade crossings to a distance of 2 feet on the outer side of eachoutermost rail, and such maintenance shall include, but is not limited to, therailroad roadbed, rails and all appurtenant facilities.

7. On projects where federal funds are used,apportionment and division of costs shall be in accordance with federal law andthe rules, regulations and orders of the federal agency administering such lawto the extent that such law, rule or regulations and orders require a differentapportionment of costs than is set forth in this section. The provisions ofthis section may not otherwise be invoked on projects to the extent that suchfederal law, rules, regulations and orders are applicable.

8. The provisions of this section impose no limitationupon the right of governmental units or railroads to negotiate agreementsapportioning costs. To the extent that costs are apportioned by such agreement,the Commission shall order that costs be apportioned and borne in the mannerprovided by such agreement.

(Added to NRS by 1971, 572)

NRS 704.307 Railroads:Duty of Commission to ensure safety; regulations. TheCommission shall:

1. Perform such duties and functions as are necessary:

(a) To ensure the safety of railroad equipment,facilities, rolling stock and operations in this state.

(b) For this state to participate in any federal safetyprogram relating to railroads.

2. Adopt such regulations as it determines arenecessary in carrying out the provisions of this section.

(Added to NRS by 1997, 1274)

NRS 704.309 Railroads:Commission to levy and collect annual assessments; payment of penalty; sale ortransfer of certificate of public convenience and necessity; action forcollection of assessment or penalty.

1. The Commission shall levy and collect an annualassessment from each railroad subject to the jurisdiction of the Commissionthat transports cargo into, out of or through this state to support theactivities of the Commission relating to railroad safety.

2. The annual assessment levied on railroads:

(a) Must be equal to the costs incurred by theCommission that are not offset by the fees paid pursuant to NRS 459.512.

(b) Must be not more than 1 cent per ton of cargotransported by the railroads into, out of or through this state during theimmediately preceding calendar year.

3. On or before September 1 of each year, theCommission shall:

(a) Calculate the amount of the assessment to be leviedpursuant to this section for the previous fiscal year; and

(b) Mail to each railroad subject to the provisions ofthis section to the current address of the railroad on file with the Commissiona notice indicating the amount of the assessment. The failure of the Commissionto so notify a railroad does not invalidate the assessment.

4. An assessment levied pursuant to this section isdue on or before November 1 of each year. Each railroad that is subject to theprovisions of this section which fails to pay the assessment on or beforeDecember 1, shall pay, in addition to the assessment, a penalty of 1 percent ofthe total unpaid balance for each month or portion thereof that the assessmentis delinquent or $10, whichever is greater, except that no penalty may exceed$1,000 for each delinquent payment.

5. If a railroad sells or transfers its certificate ofpublic convenience and necessity or sells or transfers substantially all of itsassets, the Commission shall calculate, levy and collect the accrued assessmentfor the current year not later than 30 days after the sale or transfer, unlessthe purchaser or transferee has assumed liability for the assessment. For thepurposes of this subsection, the jurisdiction of the Commission over the saleor transfer of a railroad continues until the assessment of the railroad hasbeen paid.

6. The Commission may bring an appropriate action inits own name for the collection of any assessment and penalty that is not paidpursuant to this section.

(Added to NRS by 1997, 1496; A 2001, 1765)

NRS 704.310 Saleof surplus light, heat or power by person not public utility; approval byCommission.

1. Whenever any person, company, corporation orassociation which is not engaged in business as a public utility as defined bythis chapter, and which does not furnish, sell, produce or deliver to otherslight, heat or power, under a franchise received from this State or from anycounty or municipality within this State, is able, from any surplus beyond theneeds or requirements of its own business, and desires to sell, produce,furnish and deliver to any other person, company, association or corporationany light, heat or power, the person, company, association or corporation shallapply to the Commission for authority to sell, produce, furnish or deliver anysuch surplus light, heat or power, and shall submit to the Commission theproposed contract by which such light, heat or power is to be sold, furnished,produced or delivered.

2. The Commission shall thereupon ascertain whether itis advisable in the public interest that the contract be executed and, if theCommission approves the contract, then the person, company, corporation orassociation has the right to furnish, sell, produce and deliver such light,heat or power in accordance with the terms of the contract, and does notthereby become a public utility within the meaning of this chapter, nor is itsubject to the jurisdiction of the Commission.

[37:109:1919; 1919 RL p. 3166; NCL 6138](NRS A1997, 1911)

NRS 704.320 Purchaseof surplus water or electric current by public utility for resale; applicationfiled with Commission; approval of application; seller not deemed publicutility.

1. Every person, company, corporation or associationwhich is engaged in business in this state as a public utility shall have, andis hereby given, the right to purchase water or electric current for its use assuch public utility from any other person or corporation having for sale asurplus of such water or electric current.

2. Any public utility desiring to purchase such wateror electric current for resale or for purposes other than its own use shallfile an application with the Commission, setting forth:

(a) The terms and conditions of the proposed purchaseof such electric current or water.

(b) The person or corporation from whom such purchaseis proposed to be made.

(c) The duration of the contract to purchase.

(d) Such other information relative thereto and in thepossession of the applicant as the Commission shall prescribe.

3. If the Commission shall find it desirable in thepublic interest that the purchase be made, it shall approve the application,and upon approval the public utility may make and execute the contract ofpurchase.

4. The person or corporation selling such water orelectric current to the public utility under the contract approved by theCommission shall not thereby become, or be deemed to be, a public utilitywithin the meaning of any statute of this state, nor shall it by virtue of suchcontract be deemed to be within or subject to the jurisdiction of theCommission in any respect whatsoever, nor shall it thereby be deemed to be inany sense a public service corporation, or engaged in a public service.

5. The terms and provisions of this section shall betaken and considered to be a part of any such contract, and the faith of theState of Nevada is hereby pledged against any alteration, amendment or repealof this section during the existence of any such contract, or any extensionthereof, approved by the Commission.

[1:103:1921; NCL 6147] + [2:103:1921; NCL 6148] +[3:103:1921; NCL 6149]

STOCKS AND SECURITY TRANSACTIONS

NRS 704.322 Securitydefined. As used in NRS 704.322 to 704.328, inclusive, security means anynote, stock, treasury stock, bond, debenture or other evidence of interest inor indebtedness of a person, firm or corporation.

(Added to NRS by 1957, 444)

NRS 704.323 Issuanceof security or assumption of obligation by privately owned public utilitysubject to authorization by Commission; exceptions.

1. No privately owned public utility organized underthe laws of and operating in the State of Nevada shall issue any security, orassume any obligation as guarantor, endorser, surety or otherwise, in respectof any security of any other person, firm or corporation, unless and until, andonly to the extent, authorized by a written order of the Commission.

2. The provisions of subsection 1 shall not apply tothe issue or renewal of, or assumption of liability on, a note or draftmaturing not more than 1 year after the date of such issue, renewal orassumption of liability, but in the case of privately owned electric orcombination electric utilities subject to the jurisdiction of the Commissionthe provisions of subsection 1 shall apply to all security issues, or renewalsor assumption of obligations as guarantor, endorser, surety or otherwise, havinga maturity of 1 year or less where the combined sum of such security issues,renewals or assumptions exceeds $1,000,000 or 5 percent of the par value of theother securities of the public utility then outstanding. In case of securitieshaving no par value the par value for purposes of this subsection shall be thefair market value as of the date of issue of the privately owned or combinationelectric utilities, whichever sum is greater.

(Added to NRS by 1957, 444; A 1965, 1011)

NRS 704.324 Orderauthorizing issuance of security or assumption of obligation; variable-ratesecurities; supplemental order; findings; conditions.

1. Upon receipt of an application for an orderauthorizing the issuance of any security or the assumption of any obligation inrespect to any security of another, the Commission may grant the application inwhole or in part and with such modifications and upon such terms and conditionsas it may find necessary or appropriate.

2. The Commission may authorize the issuance of avariable-rate security and it may authorize the public utility to use a methodfor accounting and rate making for an existing or new variable-rate securitywhich ensures that the recovery of the utilitys expenses for issuing or maintainingthat security from the rates charged to its customers will equal the interestor dividends actually paid on the security.

3. The Commission shall not require a public utilityto issue or maintain a variable-rate security if the recovery of the utilitysexpenses for issuing or maintaining that security from the rates charged to itscustomers does not equal the interest or dividends actually paid on thesecurity.

4. The Commission may from time to time make suchsupplemental orders in the premises as it may find necessary or appropriate.The supplemental order may modify the provisions of any previous order as tothe particular purposes, uses and extent to which, or the conditions underwhich, any security theretofore authorized or the proceeds thereof may beapplied.

5. The Commission shall not make any order orsupplemental order granting any application hereunder unless it finds that theissue or assumption:

(a) Is for some lawful object, within the corporatepurposes of the applicant and compatible with the public interest, which isnecessary or appropriate for or consistent with the proper performance by theapplicant of service as a public utility and which will not impair its abilityto perform that service; and

(b) Is reasonably necessary or appropriate for thosepurposes.

6. The Commission shall not authorize thecapitalization of the right to be a corporation or any franchise, permit orcontract for consolidation, merger or lease in excess of the amount, exclusiveof any tax or annual charge, actually paid as the consideration for the right,franchise, permit or contract.

(Added to NRS by 1957, 444; A 1989, 1113)

NRS 704.325 Limitationson application of security or proceeds. No publicutility shall, without the consent of the Commission, apply any security or anyproceeds thereof to any purpose not specified in the Commissions order, orsupplemental order, or to any purpose in excess of the amount allowed for suchpurpose in such order, or otherwise in contravention of such order.

(Added to NRS by 1957, 445)

NRS 704.326 Guaranteeor obligation of State not implied. Nothing inNRS 704.322 to 704.325, inclusive, shall be construed toimply any guarantee or obligation on the part of the State of Nevada in respectof any securities to which the provisions of such sections relate.

(Added to NRS by 1957, 445)

NRS 704.327 Paymentof necessary expenses of Commission by public utility.All necessary expenses incurred by the Commission in the administrationof NRS 704.322 to 704.326, inclusive, shall be chargedagainst and collected from the public utility by the Commission.

(Added to NRS by 1957, 445; A 1973, 1834)

NRS 704.328 Inapplicabilityof NRS704.322 to 704.326, inclusive, to certain publicutilities. The provisions of NRS 704.322 to 704.326, inclusive, shall not apply to anypublic utility engaged in:

1. Interstate commerce if 25 percent or more of theoperating revenues of such public utility are derived from interstate commerce.

2. The business of furnishing, for compensation, wateror services for the disposal of sewage, or both, to persons within this stateif the utility:

(a) Serves 15 persons or less; and

(b) Operates in a county whose population is 400,000 ormore.

(Added to NRS by 1957, 445; A 1963, 814; 1965, 1011; 2003, 369)

MERGERS, ACQUISITIONS OR CHANGES IN CONTROL

NRS 704.329 Mergers,acquisitions or changes in control of public utility or entity that holdscontrolling interest in public utility: Authorization of Commission required;time within which Commission must act; exceptions.

1. Except as otherwise provided in subsection 6, aperson shall not merge with, directly acquire, indirectly acquire through asubsidiary or affiliate, or otherwise directly or indirectly obtain control ofa public utility doing business in this state or an entity that holds acontrolling interest in such a public utility without first submitting to theCommission an application for authorization of the proposed transaction andobtaining authorization from the Commission.

2. Any transaction that violates the provisions ofthis section is void and unenforceable and is not valid for any purpose.

3. Before authorizing a proposed transaction pursuantto this section, the Commission shall consider the effect of the proposedtransaction on the public interest and the customs in this state. TheCommission shall not authorize the proposed transaction unless the Commissionfinds that the proposed transaction:

(a) Will be in the public interest; and

(b) Complies with the provisions of NRS 704.7561 to 704.7595, inclusive, if the proposedtransaction is subject to those provisions.

4. The Commission may base its authorization of theproposed transaction upon such terms, conditions or modifications as theCommission deems appropriate.

5. If the Commission does not issue a final orderregarding the proposed transaction within 180 days after the date on which anapplication or amended application for authorization of the proposedtransaction was filed with the Commission, and the proposed transaction is notsubject to the provisions of NRS 704.7561to 704.7595, inclusive, the proposedtransaction shall be deemed to be authorized by the Commission.

6. The provisions of this section do not apply to:

(a) The transfer of stock of a public utility doingbusiness in this state or to the transfer of the stock of an entity that holdsa controlling interest in such a public utility, if a transfer of not more than25 percent of the common stock of such a public utility or entity is proposed.

(b) Except as otherwise provided in this paragraph, aproposed transaction involving a public utility doing business in this stateproviding telecommunication services or an entity that holds a controllinginterest in such a public utility if, in the most recently completed calendaryear, not more than 10 percent of the gross operating revenue of the publicutility or the entity that holds a controlling interest in the public utilitywas derived from intrastate telecommunication services provided to retailcustomers in this state by the public utility. Such a proposed transaction isnot exempted from the provisions of this section if:

(1) Not later than 30 days after the date onwhich the person undertaking the proposed transaction submits the notificationrequired by 15 U.S.C. 18a, the Regulatory Operations Staff of the Commissionor the Consumers Advocate requests an order from the Commission requiring theperson to file an application for authorization of the proposed transaction;

(2) The request alleges in sufficient detailthat the proposed transaction may materially affect retail customers of publicutilities in this state; and

(3) The Commission issues an order requiring theperson to file an application for authorization of the proposed transaction.

(c) A public utility engaged in the business offurnishing, for compensation, water or services for the disposal of sewage, orboth, to persons within this state if the utility:

(1) Serves 15 persons or less; and

(2) Operates in a county whose population is400,000 or more.

7. As used in this section:

(a) Person means:

(1) A natural person;

(2) Any form of business or social organizationand any other nongovernmental legal entity, including, without limitation, acorporation, partnership, association, trust or unincorporated organization;

(3) A government or an agency or instrumentalityof a government, including, without limitation, this state or an agency orinstrumentality of this state; and

(4) A political subdivision of this state or ofany other government or an agency or instrumentality of a political subdivisionof this state or of any other government.

(b) Transaction means a merger, acquisition or changein control described in subsection 1.

(Added to NRS by 1997, 3042; A 2001, 349, 3250; 2003, 369)

CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY

NRS 704.3296 Electricutility defined. As used in NRS 704.3296 to 704.430, inclusive, unless the contextotherwise requires, electric utility has the meaning ascribed to it in NRS 704.7571.

(Added to NRS by 2001, 343)

NRS 704.330 Publicutility to obtain certificate of public convenience or necessity; exceptions;terms and conditions; orders to cease and desist; duplication of service.

1. Every public utility owning, controlling, operatingor maintaining or having any contemplation of owning, controlling or operatingany public utility shall, before beginning such operation or continuingoperations or construction of any line, plant or system or any extension of aline, plant or system within this State, obtain from the Commission acertificate that the present or future public convenience or necessity requiresor will require such continued operation or commencement of operations orconstruction.

2. Nothing in this section requires a public utilityto secure such a certificate for any extension within any town or city withinwhich it lawfully commenced operations or for any other extension as long asthe extension:

(a) Is to serve a telephone toll station or stations tobe located not more than 10 miles from existing telephone facilities; or

(b) Remains within the boundaries of the service areawhich have been established by the Commission for its railroad, line, plant orsystem, and not then served by a public utility of like character.

3. Upon the granting of any certificate of publicconvenience, the Commission may make such an order and prescribe such terms andconditions for the location of lines, plants or systems to be constructed,extended or affected as may be just and reasonable.

4. When a complaint has been filed with the Commissionalleging that any utility is being operated without a certificate of publicconvenience and necessity as required by this section, or when the Commissionhas reason to believe that any provision of this section is being violated, theCommission shall investigate such operations and the Commission may, after ahearing, make its order requiring the owner or operator of the utility to ceaseand desist from any operation in violation of this section. The Commissionshall enforce compliance with such an order under the powers vested in theCommission by law.

5. If any public utility in constructing or extendingits line, plant or system interferes or is about to interfere with theoperation of the line, plant or system of any other public utility alreadyconstructed, the Commission, on complaint of the public utility claiming to beinjuriously affected, after hearing, may make such an order prohibiting theconstruction or extension, or prescribing such terms and conditions for thelocation of the lines, plants or systems affected, as to it may seem just andreasonable.

6. Except as provided in subsection 7, whenever theCommission, after a hearing upon its own motion or upon complaint, finds thatthere is or will be a duplication of service by public utilities in any area,the Commission shall either issue a certificate of public convenience andnecessity assigning specific territories to one or to each of such utilities,or, by certificate of public convenience and necessity, otherwise define theconditions of rendering service and construction, extensions within suchterritories, and shall order the elimination of such duplication, all upon suchterms as are just and reasonable, having due regard to due process of law andto all the rights of the respective parties and to public convenience andnecessity.

7. The Commission may allow a duplication of serviceby public utilities in an area if:

(a) The service provided is related totelecommunication; and

(b) It finds that the competition should occur and thatany duplication of service is reasonable.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,407](NRS A 1959, 269; 1963, 814, 1117; 1971, 727; 1985, 1018)

NRS 704.340 Municipalitiesand certain trusts for furtherance of public functions not required to obtaincertificates; approval and jurisdiction of Commission.

1. Subject to the provisions of subsection 3, amunicipality constructing, leasing, operating or maintaining any publicutility, or a trust created for the benefit and furtherance of any publicfunction pursuant to the provisions of general or special law, is not requiredto obtain a certificate of public convenience, but any trust so created whichundertakes the operation of a public utility shall first submit a certifiedcopy of the trust documents or prepared trust documents to the Commissiontogether with a detailed explanation of the purposes, scope, area to beaffected and such other pertinent information necessary to assist theCommission in making a determination as to whether the service presently beingoffered by any existing public utility would be unreasonably impaired by theapproval of such trust documents.

2. The Commission shall, after investigation andhearing on any contemplated trust coming within the provisions of subsection 1,submit a report of its findings and reasons therefor to the State and eachpolitical subdivision within which such trust contemplates operation. Suchtrust does not become effective unless and until written approval has beengiven by the Commission.

3. If a municipality assumes operation and control ofa package plant for sewage treatment pursuant to the provisions of NRS 445A.555 or subsection 2 or 3 of NRS 268.4105, the plant is exempt from thejurisdiction of the Commission only for the period of time the municipalitycontinues the maintenance and operation of the plant. The certificate of publicconvenience as it applies to that plant is suspended for that period of time.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,407](NRS A 1971, 1036; 1975, 1409; 1979, 1921; 1997, 1911)

NRS 704.350 Prerequisitesto issuance of certificate. Every applicantfor a certificate of public convenience shall furnish such evidence of itscorporate character and of its franchise or permits as may be required by theCommission.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,407]

NRS 704.360 Conductof investigations and hearings. All hearingsand investigations under NRS 704.3296to 704.430, inclusive, shall beconducted substantially as is provided for hearings and investigations oftolls, charges and service.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,407]

NRS 704.370 Issuanceor refusal of certificate: Terms and conditions; hearing required for certainapplications; power of Commission to dispense with hearing for certainapplications.

1. The Commission shall have the power, after hearing,to issue or refuse such certificate of public convenience, or to issue it forthe construction of a portion only of the contemplated line, plant or systems,or extension thereof, and may attach thereto such terms and conditions as, inits judgment, the public convenience and necessity may require.

2. Except asotherwise provide in subsection 3, the Commission, in its discretion and afterinvestigation, may dispense with the hearing on the application if, upon theexpiration of the time fixed in the notice thereof, no protest against thegranting of the application has been filed by or on behalf of any interestedperson.

3. The Commission shall not dispense with the hearingon the application of an electric utility.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,407](NRS A 1963, 814; 2001,350)

NRS 704.380 Publicutility beginning, prosecuting or completing new construction withoutcertificate: Levy of tolls and charges prohibited and void. No public utility beginning, prosecuting or completing anynew construction in violation of this chapter shall be permitted to levy anytolls or charges for services rendered, and all such tolls and charges shall bevoid.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,407]

NRS 704.390 Discontinuance,modification or restriction of service: Authorization of Commission required;hearing required for certain applications; power of Commission to dispense withhearing for certain applications.

1. It is unlawful for any public utility todiscontinue, modify or restrict service to any city, town, municipality,community or territory theretofore serviced by it, except upon 30 days noticefiled with the Commission, specifying in detail the character and nature of thediscontinuance or restriction of the service intended, and upon order of theCommission, made after hearing, permitting such discontinuance, modification orrestriction of service.

2. Except asotherwise provided in subsection 3, the Commission, in its discretion and afterinvestigation, may dispense with the hearing on the application fordiscontinuance, modification or restriction of service if, upon the expirationof the time fixed in the notice thereof, no protest against the granting of theapplication has been filed by or on behalf of any interested person.

3. The Commission shall not dispense with the hearingon the application of an electric utility.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,407](NRS A 1963, 815; 1969, 1159; 2001, 350)

NRS 704.400 Orderof Commission prima facie lawful from date of order. Everyorder refusing or granting any certificates of public convenience, or grantingor refusing permission to discontinue, modify or restrict service, as providedin NRS 704.3296 to 704.430, inclusive, is prima facie lawfulfrom the date of the order until changed or modified by the order of theCommission or pursuant to NRS 703.373 to703.376, inclusive.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,407](NRS A 1983, 968)

NRS 704.410 Transferof certificate: Authorization of Commission required; hearing required forcertain transfers; power of Commission to dispense with hearing for certaintransfers; factors considered; effectiveness of certificate after transfer.

1. Any public utility subject to the provisions of NRS 704.001 to 704.7595, inclusive, to which acertificate of public convenience and necessity has been issued pursuant to NRS 704.001 to 704.7595, inclusive, may transfer thecertificate to any person qualified under NRS704.001 to 704.7595, inclusive.Such a transfer is void and unenforceable and is not valid for any purposeunless:

(a) A joint application to make the transfer has beenmade to the Commission by the transferor and the transferee; and

(b) The Commission has authorized the substitution ofthe transferee for the transferor. If the transferor is an electric utility,the Commission shall not authorize the transfer unless the transfer complieswith the provisions of NRS 704.7561 to 704.7595, inclusive.

2. The Commission:

(a) Shallconduct a hearing on a transfer involving an electric utility. The hearing mustbe noticed and conducted in the same manner as other contested hearings beforethe Commission.

(b) May direct that a hearing be conducted on atransfer involving any other public utility. If the Commission determines thatsuch a hearing should be held, the hearing must be noticed and conducted in thesame manner as other contested hearings before the Commission. The Commissionmay dispense with such a hearing if, upon the expiration of the time fixed inthe notice thereof, no protest to the proposed transfer has been filed by or onbehalf of any interested person.

3. In determining whether the transfer of acertificate of public convenience and necessity to an applicant transfereeshould be authorized, the Commission must take into consideration:

(a) The utility service performed by the transferor andthe proposed utility service of the transferee;

(b) Other authorized utility services in the territoryfor which the transfer is sought;

(c) Whether the transferee is fit, willing and able toperform the services of a public utility and whether the proposed operationwill be consistent with the legislative policies set forth in NRS 704.001 to 704.7595, inclusive; and

(d) Whether thetransfer will be in the public interest.

4. The Commission may make such amendments,restrictions or modifications in a certificate upon transferring it as thepublic interest requires.

5. No transfer is valid beyond the life of thecertificate transferred.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,407](NRS A 1963, 815; 1969, 1159; 1971, 1118; 1985, 316; 1989, 727; 1997,3042; 2001, 350)

NRS 704.430 Penalty;separate offenses.

1. Any person, firm, association or corporation whoviolates any provisions of NRS 704.3296to 704.430, inclusive, shall be punishedby a fine of not more than $250.

2. Each days operation without a certificate asprovided in NRS 704.3296 to 704.430, inclusive, or each day thatservice is discontinued, modified or restricted, as defined in NRS 704.3296 to 704.430, inclusive, must be considered aseparate offense.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,407](NRS A 1967, 656; 1971, 728; 2001, 351)

VALUATION OF PROPERTY

NRS 704.440 Investigationand ascertainment of value of property of public utility.

1. The Commission may, in its discretion, investigateand ascertain the value of all property of every public utility actually usedand useful for the convenience of the public.

2. In making such investigation the Commission mayavail itself of all information contained in the assessment rolls of thevarious counties and the public records and files of all state departments,offices and commissions, and any other information obtainable.

[8:109:1919; 1919 RL p. 3157; NCL 6107]

VIOLATIONS, PENALTIES AND REMEDIES

NRS 704.595 Civilpenalty for violation of regulations adopted in conformity with Natural GasPipeline Safety Act of 1968; compromise and recovery of penalty.

1. Any person who violates any provision of anyregulation adopted by the Commission in conformity with the Natural GasPipeline Safety Act of 1968, as amended, 49 U.S.C. 60101 et seq., or with afederal regulation adopted pursuant thereto, shall be subject to a civilpenalty not to exceed $100,000 for each violation for each day that theviolation persists, but the maximum civil penalty must not exceed $1,000,000for any related series of violations. Unless compromised, the amount of anysuch civil penalty must be determined by a court of competent jurisdiction.

2. Any civil penalty may be compromised by theCommission. In determining the amount of the penalty, or the amount agreed uponin compromise, the appropriateness of the penalty to the size of the businessof the person charged, the gravity of the violation, and the good faith of theperson charged in attempting to achieve compliance, after notification of aviolation, must be considered.

3. The amount of the penalty, when finally determined,or the amount agreed upon in compromise, may be deducted from any sum owing bythe State to the person charged or may be recovered in a civil action in anycourt of competent jurisdiction.

(Added to NRS by 1969, 1000; A 1993, 297; 2005, 304)

NRS 704.600 Failureor refusal to make reports or allow examination unlawful; penalty. Any officer, agent or employee of any public utility who:

1. Willfully fails or refuses to fill out and returnany blanks as required by this chapter;

2. Willfully fails or refuses to answer any questionstherein propounded;

3. Knowingly or willfully gives a false answer to thequestions;

4. Evades the answer to any question where the factinquired of is within his knowledge; or

5. Upon proper demand, willfully fails or refuses toexhibit to the Commission or any Commissioners, or any person also authorizedto examine the same, any book, paper or account of such public utility which isin his possession or under his control,

is subjectto the penalty prescribed in NRS 703.380.

[31:109:1919; 1919 RL p. 3164; NCL 6131](NRS A1981, 1598)

NRS 704.630 Additionalcivil remedies of Commission. In addition toall the other remedies provided by this chapter for the prevention andpunishment of any and all violations of the provisions thereof and of allorders of the Commission, the Commission may compel compliance with theprovisions of this chapter and with the orders of the Commission by proceedingsin mandamus, injunction or by other civil remedies.

[38:109:1919; 1919 RL p. 3166; NCL 6139]

NRS 704.635 Orderby Commission to cease and desist. When a complainthas been filed with the Commission alleging that a person is providing a servicewhich requires a certificate of public convenience and necessity, or when theCommission has reason to believe that any provision of NRS 704.005 to 704.751, inclusive, or 704.9901 is being violated, the Commissionshall investigate the operation and may, after a hearing, issue an orderrequiring that the person cease and desist from any operation in violation of NRS 704.005 to 704.751, inclusive, or 704.9901. The Commission shall enforce theorder under the powers vested in the Commission by NRS 704.005 to 704.751, inclusive, or 704.9901 or other law.

(Added to NRS by 1969, 1161; A 1985, 317; 1989, 728; 2003, 3029)

NRS 704.638 Unlawfulto post sign on device of public utility used to support line for telegraph,telephone or electricity. It is unlawful forany person to post any advertising sign, display or device, including atemporary political sign, on any pole, support or other device of a publicutility which is used to support a telegraph, telephone or electrictransmission line.

(Added to NRS by 1979, 436)

NRS 704.640 Criminal penalties. Except as otherwise provided in NRS 704.6881 to 704.6884, inclusive, any person who:

1. Operatesany public utility to which NRS 704.005to 704.751, inclusive, 704.9901 and 704.993 to 704.999, inclusive, apply without firstobtaining a certificate of public convenience and necessity or in violation ofits terms;

2. Fails tomake any return or report required by NRS704.005 to 704.751, inclusive, 704.9901 and 704.993 to 704.999, inclusive, or by the Commissionpursuant to NRS 704.005 to 704.751, inclusive, 704.9901 and 704.993 to 704.999, inclusive;

3. Violates,or procures, aids or abets the violating of any provision of NRS 704.005 to 704.751, inclusive, 704.9901 and 704.993 to 704.999, inclusive;

4. Fails toobey any order, decision or regulation of the Commission;

5. Procures,aids or abets any person in his failure to obey the order, decision orregulation; or

6. Advertises,solicits, proffers bids or otherwise holds himself out to perform as a publicutility in violation of any of the provisions of NRS 704.005 to 704.751, inclusive, 704.9901 and 704.993 to 704.999, inclusive,

shall befined not more than $500.

[41:109:1919; 1919 RL p. 3167; NCL 6142](NRS A1967, 656; 1969, 999; 1979, 1493; 1985, 317; 1989, 728; 1997, 1497, 1912, 3043;1999, 631, 632, 1319, 1320; 2003, 3029)

NRS 704.645 Remediesof State cumulative; election of remedies. Theremedies of the State provided for in this chapter are cumulative, and noaction taken by the Commission constitutes an election on the part of the Stateor any of its officers to pursue any remedy under this chapter to the exclusionof any other remedy for which provision is made in this chapter.

(Added to NRS by 1969, 1000)

CUSTOMER DEPOSITS

NRS 704.655 Publicutility required to pay interest on deposits made by customers; penalty.

1. Every public utility which furnishes the publicwith light and power, telephone service, gas or water, or any of them, shallpay to every customer from whom any deposit has been required interest on thedeposit at the rate fixed for 6-month Treasury bills of the United States atthe first auction:

(a) On or after December 1 of any year for the periodfrom January 1 to June 30 of the succeeding year; or

(b) On or after June 1 of any year for the period fromJuly 1 to December 31 of that year,

from thedate of deposit until the date of settlement or withdrawal of deposit. Wherethe deposit remains for 1 year or more and the person making the depositcontinues to be a customer, the interest on the deposit must be either paid incash to the depositor or applied on current bills for the use of the serviceprovided by the public utility, as the depositor may desire.

2. Any public utility which fails, refuses or neglectsto pay the interest provided in subsection 1 in the manner required bysubsection 1 is guilty of a misdemeanor.

(Added to NRS by 1971, 858; A 1981, 56, 840; 1983,546; 1985, 2050)

WATER SERVICE AND SEWAGE SERVICE

NRS 704.660 Publicutility supplying water required to provide sufficient water for protectionfrom fire at reasonable rates; regulations by Commission.

1. Any public utility which furnishes, forcompensation, any water for domestic purposes shall furnish each city, town,village or hamlet which it serves with a reasonably adequate supply of water atreasonable pressure for fire protection and at reasonable rates, all to befixed and determined by the Commission.

2. The duty to furnish a reasonably adequate supply ofwater provided for in subsection 1 includes the laying of mains with allnecessary connections for the proper delivery of the water for fire protectionand also the installing of appliances to assure a reasonably sufficientpressure for fire protection.

3. The Commission may fix and determine reasonablerates and prescribe all installations and appliances adequate for the properutilization and delivery of water for fire protection. The Commission may adoptregulations and practices to be followed by a utility in furnishing water forfire protection, and has complete jurisdiction of all questions arising underthe provisions of this section.

4. All proceedings under this section must beconducted pursuant to NRS 703.320 to 703.370, inclusive, and 704.005 to 704.645, inclusive. All violations of anyorder made by the Commission under the provisions of this section are subjectto the penalties for similar violations of the provisions of NRS 704.005 to 704.645, inclusive.

5. This section applies to and governs all publicutilities furnishing water for domestic use on March 26, 1913, unless otherwiseexpressly provided in the charters, franchises or permits under which thoseutilities are acting. Each public utility which supplies water for domesticuses after March 26, 1913, is subject to the provisions of this section,regardless of any conditions to the contrary in any charter, franchise orpermit of whatever character granted by any county, city, town, village orhamlet within this state, or of any charter, franchise or permit granted by anyauthority outside this state.

[1:255:1913; 1919 RL p. 3172; NCL 6158] +[2:255:1913; 1919 RL p. 3172; NCL 6159] + [3:255:1913; 1919 RL p. 3172; NCL 6160] + [4:255:1913; 1919 RL p. 3173; NCL 6161] + [5:255:1913; 1919 RL p.3173; NCL 6162](NRS A 1979, 248; 1989, 728; 2003, 3029)

NRS 704.662 Planof water conservation: Requirement and procedure for adoption; review byCommission; election to comply with plan adopted by Commission.

1. Except as otherwise provided in subsection 5, eachpublic utility which furnishes, for compensation, any water for municipal,industrial or domestic purposes shall adopt a plan of water conservation basedon the climate and the living conditions in its service area in accordance withthe provisions of NRS 704.6622. Theprovisions of the plan must only apply to the public utilitys property and itscustomers.

2. As part of the procedure of adopting a plan, thepublic utility shall provide an opportunity for any interested party,including, but not limited to, any private or public entity that supplies waterfor municipal, industrial or domestic purposes, to submit written views andrecommendations on the plan.

3. Except as otherwise provided in subsection 6, theplan:

(a) Must be available for inspection by members of thepublic during office hours at the office of the public utility; and

(b) May be revised from time to time to reflect thechanging needs and conditions of the service area. Each such revision must befiled with the Commission and made available for inspection by members of thepublic within 30 days after its adoption.

4. The plan must be approved by the Commission beforeit is put into effect.

5. In lieu of adopting a plan pursuant to subsection1, a public utility which is subject to the provisions of NRS 704.095 may elect to comply with a planof water conservation adopted by the Commission for this purpose.

6. If the public utility is required by order of theCommission to file a management plan for water resources, the public utilitymay adopt and file the plan of water conservation with the Commission at thesame time it is required to file the management plan for water resources.

(Added to NRS by 1991, 522; A 2001, 1766)

NRS 704.6622 Planof water conservation: Contents; approval by Commission.

1. A plan of water conservation submitted to theCommission for approval must include provisions relating to:

(a) Methods of public education to:

(1) Increase public awareness of the limitedsupply of water in this state and the need to conserve water.

(2) Encourage reduction in the size of lawns andencourage the use of plants that are adapted to arid and semiarid climates.

(b) Specific conservation measures required to meet theneeds of the service area, including, but not limited to, any conservationmeasures required by law.

(c) The management of water to:

(1) Identify and reduce leakage in watersupplies, inaccuracies in water meters and high pressure in water supplies; and

(2) Increase the reuse of effluent.

(d) A contingency plan for drought conditions thatensures a supply of potable water.

(e) A schedule for carrying out the plan.

(f) Measures to evaluate the effectiveness of the plan.

2. A plan submitted for approval must be accompaniedby an analysis of the feasibility of charging variable rates for the use ofwater to encourage the conservation of water.

3. The Commission shall review any plan submitted toit and approve the plan if it is based on the climate and living conditions ofthe service area and complies with the requirements of this section.

(Added to NRS by 1991, 523)

NRS 704.6624 Planto provide incentives for water conservation: Procedure for adoption; revision;review and approval by Commission.

1. Each public utility which furnishes, forcompensation, any water for municipal, industrial or domestic purposes shalladopt a plan to provide incentives:

(a) To encourage water conservation in its servicearea;

(b) To retrofit existing structures with plumbingfixtures designed to conserve the use of water; and

(c) For the installation of landscaping that uses aminimal amount of water.

2. As part of the procedure of adopting a plan, thepublic utility shall provide an opportunity for any interested person to submitwritten views and recommendations on the plan.

3. The plan:

(a) Must be available for inspection by members of thepublic during office hours at the office of the public utility; and

(b) May be revised from time to time to reflect thechanging needs and conditions of the service area. Each such revision must befiled with the Commission and made available for inspection by members of thepublic within 30 days after its adoption.

4. The Commission shall review the plan for compliancewith this section within 30 days after its submission. The plan must beapproved by the Commission before it is put into effect.

(Added to NRS by 1991, 523; A 2001, 1766)

NRS 704.664 Facilityfor treatment of water acquired and constructed by county: Approval ofCommission required for imposition of tax to finance facility if water taxed issupplied by public utility; determination by Commission.

1. A county shall not impose the tax authorized by NRS 244.3661 on the use of water bycustomers of a supplier of water that is a public utility, or make changes tothe ordinance imposing such a tax, without the prior approval of theCommission.

2. The Commission shall review an application made bya county for the approval required by subsection 1 in the same manner and tothe same extent as it would review an application by a public utility forincreased rates based upon construction by the public utility of the samefacility.

3. The Commission shall not approve the imposition ofthe tax or changes to the ordinance imposing the tax authorized by NRS 244.3661 unless, after an investigationand a hearing, it determines:

(a) The basis for the need of the facility;

(b) The nature of the probable effect on theenvironment;

(c) That the facility represents the minimum adverseeffect on the environment, considering the state of available technology andthe nature and economics of the various alternatives and other pertinentconsiderations;

(d) That the location of the facility as proposedconforms to applicable state and local laws and any regulations issued pursuantthereto;

(e) That the facility will serve the public interest;

(f) That the tax which the county proposes to impose isjust and reasonable and consistent with the policies of the Commissionapplicable to rates and rate design for public utilities;

(g) That the aggregate amount generated by the tax willbe sufficient to provide for the payment of the obligations issued by thecounty to acquire and construct the new facility;

(h) That the water treatment services of the newfacility will be available for use by the public utility for as long as thepublic utility holds a certificate of public convenience and necessity toprovide service as a water utility within the boundaries of the county on termsand conditions which are reasonable and just to the utility and its customers;

(i) That the construction of the facility is consistentwith a resource plan approved by the Commission and the facility can beintegrated into existing water systems;

(j) That the financing of the facility pursuant to thissection is economically more advantageous to the customers of the publicutility who will pay the tax than any alternative means of financing a newfacility by the public utility; and

(k) That the construction of the facility and theimposition of the tax is otherwise in the public interest.

4. The Commission shall adopt such regulations as arenecessary to carry out the provisions of this section.

(Added to NRS by 1991, 1941)

NRS 704.6642 Facilityfor treatment of water acquired and constructed by county: Billing andcollection of tax imposed on customers of public utility.

1. A county shall not require a public utility whosecustomers pay a tax imposed pursuant to NRS244.3661 to bill and collect the tax except pursuant to an agreemententered into pursuant to subsection 2. At the request of a county, a publicutility shall provide such information as is reasonably necessary for thecounty to bill for and collect any tax imposed upon the customers of the publicutility pursuant to NRS 244.3661.

2. A public utility whose customers pay a tax imposedpursuant to NRS 244.3661 may enter intoan agreement with the county with respect to billing for and collecting thetax. The agreement may provide for collection remedies which may include thecollection remedies available to the public utility.

(Added to NRS by 1991, 1942)

NRS 704.6644 Facilityfor treatment of water acquired and constructed by county: Public utilitys useof water treatment services provided by facility authorized; Commissionsapproval of agreement for use required.

1. A public utility must not be required to use thewater treatment services provided by a facility acquired and constructed or tobe acquired and constructed by the county pursuant to NRS 244.3661 without the consent of thepublic utility and the Commission.

2. A public utility that supplies water within theboundaries of a county may enter into an agreement with that county to use thewater treatment services provided by a facility acquired and constructed or tobe acquired and constructed by the county pursuant to NRS 244.3661. The term of the agreementmay be for more than 1 fiscal year. Any such agreement must be approved by theCommission before it becomes effective.

3. The Commission shall not approve an agreementexecuted pursuant to this section unless it determines that:

(a) The agreement provides that the water treatmentservices of the facility will be available for use by the public utility for aslong as the public utility holds a certificate of public convenience andnecessity to provide service as a water utility within the boundaries of thecounty;

(b) The basis for payment of the expenses of operatingand maintaining the facility provided in the agreement is reasonable and just;and

(c) The agreement will serve the public interest.

(Added to NRS by 1991, 1942)

NRS 704.6646 Facilityfor treatment of water acquired and constructed by county: Operation andmaintenance of facility by public utility authorized; Commissions approval ofagreement for operation and maintenance required.

1. A public utility may enter into an agreement with acounty to operate and maintain a facility acquired and constructed or to beacquired and constructed by a county pursuant to NRS 244.3661. The term of the agreementmay be for more than 1 fiscal year. Any such agreement must be approved by theCommission before it becomes effective.

2. The Commission shall not approve an agreementexecuted pursuant to this section unless it determines that:

(a) The payments to be made under the agreement to theutility for operation and maintenance of the facility are reasonable and just;and

(b) The agreement is in the public interest.

(Added to NRS by 1991, 1942)

NRS 704.665 Waterto be provided through single connection to building containing multiple unitsfor occupancy; exception. Unless the owner ofthe water system within a building containing multiple occupancy unitsotherwise requests in writing, a public utility shall provide water to thebuilding through a single connection, in which case the utility may require,where water meters are otherwise permitted by law, that there be a single watermeter or meter facility, but it shall not require a separate meter facility foreach unit therein.

(Added to NRS by 1979, 1391)

NRS 704.667 Publicutility not required to furnish water for man-made lake or stream if prohibitedor restricted by ordinance in certain counties; exceptions. In any county whose population is 400,000 or more:

1. Except as otherwise provided in subsection 2,nothing in this chapter requires a public utility to furnish water for thepurpose of filling or maintaining a man-made lake or stream where that use ofwater is prohibited or restricted by ordinance of:

(a) The county, if the man-made lake or stream islocated within the unincorporated areas of the county; or

(b) A city, if the man-made lake or stream is locatedwithin the boundaries of the city.

2. The provisions of subsection 1 and of any ordinancereferred to in subsection 1 do not apply to:

(a) Water stored in a man-made reservoir for use inflood control, in meeting peak water demands or for purposes relating to thetreatment of sewage;

(b) Water used in a mining reclamation project; or

(c) A body of water located in a recreational facilitythat is open to the public and owned or operated by the United States or theState of Nevada.

(Added to NRS by 1989, 1446)

NRS 704.6672 Reviewof water supply and sewage service for certain proposed subdivisions: Duties ofCommission; fee; exceptions.

1. The Commission shall review each tentative map fora subdivision received pursuant to NRS278.335 and conduct an investigation, if deemed necessary, to determine thecontinuity and adequacy of the water supply or sewer service, or both, for thesubdivision. If the Commission approves the final map for the subdivision, theCommission shall, for the purposes of NRS278.377, submit written verification of its approval to the Health Divisionof the Department of Health and Human Services and the Division of WaterResources of the State Department of Conservation and Natural Resources.

2. The Commission shall collect a fee not to exceed$200, which fee must be used to defray the cost of conducting any investigationunder the provisions of subsection 1.

3. The provisions of subsections 1 and 2 shall notapply in any case where:

(a) The person to furnish the water supply or sewerservice has already been granted a certificate of public convenience andnecessity by the Commission to serve the area set forth in the tentative map.

(b) Any county, municipality or other form of localgovernment, including, but not limited to, districts formed under theprovisions of chapter 318 of NRS, will furnishthe water supply or sewer service to the area set forth in the tentative map.

(Added to NRS by 1971, 1209; A 2005, 694)

NRS 704.6674 Supplierof water or services for sewage: Regulation by county; exceptions; appointmentof receiver upon petition of county commissioners.

1. The board of county commissioners of any county mayregulate by ordinance any person furnishing a water supply or sewer services,or water and sewer services, for compensation to persons within that countyexcept those persons regulated by the Commission, the services furnished to itsresidents by a political subdivision, and services furnished to its members bya nonprofit association in which the rights and interests of all its membersare equal.

2. Any person who is a customer of an entity subjectto regulation by the board of county commissioners as provided in subsection 1may request the board to review that entity, the service it is providing andthe manner in which it is providing the service to determine whether a receivershould be appointed for that entity. If the board determines it to beappropriate, it shall file a petition for the appointment of a receiver for theentity in the same manner and with the same duties and powers as a receiver appointedupon petition of the Commission for a public utility as provided in NRS 704.6676.

(Added to NRS by 1971, 1209; A 1979, 202,803)(Substituted in revision for NRS 704.681)

NRS 704.6676 Supplierof water or services for sewage: Appointment of receiver upon petition ofCommission.

1. If the Commission determines after notice andhearing that a public utility which furnishes water or services for thedisposal of sewage, or both:

(a) Is unable to provide reasonably continuous andadequate service; or

(b) Otherwise qualifies for appointment of a receiverpursuant to NRS 32.010,

theCommission may file a petition for the appointment of a receiver for the publicutility in the district court for the county in which the principal office ofthe utility is located within this state, or in the district court for CarsonCity if the principal office of the utility is located outside this state, toinsure the public interest in receiving service from the public utility in themanner required by law.

2. The district court in which the petition is filedpursuant to subsection 1 shall immediately appoint a receiver qualified tomanage the type of public utility for which the petition was filed if it findsthe determination of the Commission to be correct.

3. Any person so appointed receiver is, from the timeof his appointment until the termination of his duties pursuant to law, subjectto all duties and has all powers generally conferred upon a receiver by law,including the power to petition for relief in bankruptcy and to sell ortransfer the assets of the public utility for the benefit of the publicutilitys creditors.

(Added to NRS by 1979, 803; A 1987, 478)(Substitutedin revision for NRS 704.683)

NRS 704.668 Disposalor encumbrance of property by certain public utilities furnishing water orservices for sewage: Approval of Commission required; hearing required in certainmatters; regulations.

1. It is unlawful for any public utility which serves3,000 or fewer persons and furnishes water or services for the disposal ofsewage, or both, to:

(a) Sell, lease or otherwise dispose of; or

(b) Encumber by mortgage, deed of trust, securityagreement or otherwise,

any or allof its real property or goods, including fixtures, or any combination thereofwhich are necessary in the present or future performance of its duties to thepublic regarding water or sewage without first obtaining approval from theCommission which authorizes the public utility to do so. This limitationapplies to any interest in real property, including, without limitation,easements and water rights.

2. Any such action:

(a) Which is not taken in accordance with the approvalof the Commission; or

(b) Which is taken without obtaining the approval fromthe Commission,

is void.

3. If the public utility is disposing of all of itsreal property and goods, the Commission shall hold a public hearing on thematter before determining whether to approve the disposal.

4. The Commission shall adopt regulations which setforth the types and quantities of property and goods that are necessary in theperformance of the duties of the various classes of public utilities.

5. The provisions of this section are not intended tolimit the regulatory authority of the Commission granted in other sections ofthis chapter.

6. The provisions of this section do not apply to apublic utility engaged in the business of furnishing, for compensation, wateror services for the disposal of sewage, or both, to persons within this stateif the utility:

(a) Serves 15 persons or less; and

(b) Operates in a county whose population is 400,000 ormore.

(Added to NRS by 1991, 144; A 2003, 370)

GEOTHERMAL ENERGY

NRS 704.669 Regulationof sale of geothermal energy to public.

1. Except as otherwise provided in subsection 2, everycorporation or other person who sells geothermal energy to the public isaffected with a public interest, is a public utility and is subject to thejurisdiction and control of the Commission. The authority of the Commission toregulate such persons is limited to the authority granted by this section and NRS 704.033 and 704.035.

2. This section does not apply to any corporation orother person described in subsection 4 of NRS704.030 or to any political subdivision of the State authorized to sellenergy to the public.

3. The Commission shall adopt just and reasonableregulations governing the sale of energy from geothermal resources to thepublic. The regulations must provide for a system of operating permits which:

(a) May not be denied because the area which theapplicant proposes to serve is already being served by a gas or electricutility.

(b) May not convey an exclusive right to supplygeothermal energy in the area which the applicant proposes to serve.

(c) Specify in each case the geographic area in whichthe applicant reasonably can provide the services authorized in the permit.

(d) Require the applicant to enter into a contract witheach customer served by the utility. The form and scope of the contract must besubject to review and approval of the Commission. The contract must specify atleast:

(1) The period of time during which service willbe provided. The contract must provide for a period of at least 3 years unlesssuch a provision is expressly waived by the customer.

(2) The rates or the formula for determiningrates to be charged during the term of the contract.

(3) That the utility will submit to bindingarbitration, pursuant to chapter 38 of NRS,matters relating to damages suffered by the customer as a result of a disruptionin service and that in any such arbitration, the utility is liable for damagesunless it establishes that the disruption was caused by circumstances beyondits control, or another affirmative defense, or establishes that it was notnegligent.

4. Before issuing an operating permit the Commissionmust find that:

(a) The applicant is fit, willing and able to providethe services authorized in the permit.

(b) The applicant has tested the geothermal reservoirto determine whether it appears to be capable of providing sufficient energy tosupply the intended uses.

(c) The system which the applicant intends to use toproduce and distribute the heat meets appropriate standards.

5. The Commission has continuing authority to regulatethe utilities described in this section to ensure that each utility adheres tothe conditions set forth in its operating permit and that the utility providesadequate services.

(Added to NRS by 1981, 660; A 1997, 1912)

COOPERATIVE ASSOCIATIONS, NONPROFIT CORPORATIONS ANDASSOCIATIONS AND OTHER SIMILAR ENTITIES

NRS 704.673 Cooperatives,nonprofit corporations and associations supplying services both to public andmembers declared public utilities; regulation by Commission. Every cooperative association or nonprofit corporation orassociation and every other supplier of services described in this chaptersupplying such services for the use of the public and for the use of its ownmembers is hereby declared to be affected with a public interest, to be apublic utility, and to be subject to the jurisdiction, control and regulationof the Commission and to the provisions of this chapter; but in the case of theacquisition of the certificate or all or any part of the territory of a publicutility, as defined in paragraph (b) of subsection 2 of NRS 704.020, by a cooperative associationor nonprofit corporation or association which prior to April 26, 1963, hadsupplied services for the use of its own members only, this section shall notbe applicable for a period of 6 months or the expiration of such reasonableextension or extensions of such 6-month period as may be ordered by theCommission, during which period the cooperative association or nonprofit corporationor association may enroll as its members the customers of the public utilitywhose certificate or territory was acquired so as to make such acquiringcooperative association or nonprofit corporation or association subject only tothe limited jurisdiction, control and regulation of the Commission, and only tothe specific provisions of chapter 704 of NRSas provided by NRS 704.675.

(Added to NRS by 1963, 1114)

NRS 704.675 Cooperatives,nonprofit corporations and associations supplying services to members onlydeclared public utilities; limited jurisdiction of Commission. Every cooperative association or nonprofit corporation orassociation and every other supplier of services described in this chaptersupplying those services for the use of its own members only is hereby declaredto be affected with a public interest, to be a public utility, and to besubject to the jurisdiction, control and regulation of the Commission for thepurposes of NRS 703.191, 704.330, 704.350to 704.430, inclusive, but not to anyother jurisdiction, control and regulation of the Commission or to theprovisions of any section not specifically mentioned in this section.

(Added to NRS by 1963, 1114; A 1967, 1385; 1979, 149,248; 1981, 1679)

NRS 704.677 Certificatesof public convenience and necessity to be issued to certain cooperatives,nonprofit corporations and associations; contents of statement and certificate.

1. Every cooperative association or nonprofitcorporation or association and every other supplier of services described inthis chapter which has, prior to April 26, 1963, supplied such services for theuse of the public or for the use of its own members, or has constructedfacilities to provide such services and has done so prior to March 15, 1963, ishereby entitled to receive a certificate of public convenience and necessityfrom the Commission to cover such facilities and such area as it served priorto April 26, 1963.

2. Every cooperative association or nonprofitcorporation or association and every other supplier of services described inthis chapter which has, prior to April 26, 1963, supplied such services and isthereby entitled to a certificate of public convenience and necessity for suchfacilities and area served shall file with the Commission a statement settingforth:

(a) The name or names of the cooperative association ornonprofit corporation or association, as the case may be, by whom thefacilities have been operated.

(b) A physical description of all of the plan andfacilities used by such association in rendering such service.

(c) A general description of the area or territoryserved.

(d) Such other information as the Commission mayreasonably prescribe.

3. The Commission shall, within 60 days afterreceiving such statement, issue a certificate of public convenience andnecessity to the cooperative association or nonprofit corporation orassociation. The certificate of public convenience and necessity shall containa description of the territory which has been served by such cooperativeassociation or nonprofit corporation or association prior to April 26, 1963,and such territory shall be considered the service area within which thecooperative association or nonprofit corporation or association may conduct itsbusiness within the State of Nevada.

(Added to NRS by 1963, 1115)

BROADBAND SERVICE

NRS 704.684 Limitationson regulation of broadband service.

1. Except as otherwise provided in subsection 2 and NRS 704.68984, the Commission shall notregulate any broadband service, including imposing any requirements relating tothe terms, conditions, rates or availability of broadband service.

2. The provisions of subsection 1 do not limit ormodify the authority of the Commission to:

(a) Consider any revenues, costs and expenses that apublic utility derives from providing a broadband service, if the Commission isdetermining the rates of the public utility under a general rate applicationthat is filed pursuant to subsection 3 of NRS704.110;

(b) Act on a complaint filed pursuant to NRS 703.310, if the complaint relates to abroadband service that is provided by a public utility;

(c) Include any appropriate gross operating revenuethat a public utility derives from providing broadband service when theCommission calculates the gross operating revenue of the public utility for thepurposes of levying and collecting the annual assessment in accordance with theprovisions of NRS 704.033; or

(d) Determine the rates, terms and conditions ofintrastate special access services.

3. As used in this section:

(a) Affiliate of an incumbent local exchange carrierhas the meaning ascribed to it in NRS704.6891.

(b) Broadband service means any two-way service thattransmits information at a rate that is generally not less than 200 kilobitsper second in at least one direction.

(c) Incumbent local exchange carrier has the meaningascribed to it in NRS 704.68932.

(Added to NRS by 2003, 3036)

BROADCAST TELEVISION SERVICE

NRS 704.687 Limitationson exclusion of televised broadcasts of sporting or other special events.

1. Except as provided in subsections 2 and 3, atelevised broadcast of a sporting event or other special event originatingwithin this state must not be excluded from viewing at the time it takes placeby persons in the area of the event if all tickets available for sale are sold24 hours or more before the event.

2. Except as provided in subsection 3, a televisedbroadcast of an athletic event governed by the National Collegiate AthleticAssociation or the Association of Intercollegiate Athletics for Women must notbe excluded from viewing at the time it takes place by persons in the area ofthe event if all tickets available for sale are sold 48 hours or more beforethe event.

3. This section does not apply to sporting events orother special events which are televised for viewing on a closed circuit only.

(Added to NRS by 1979, 823)

TELECOMMUNICATION SERVICE

Standards and Practices

NRS 704.6873 Commissionrequired to adopt regulations for provision of telecommunication services topublic schools, public libraries, providers of health care serving rural areas,persons with low income and persons in rural, insular and high-cost areas.

1. The Commission shall adopt regulations that requireeach utility which provides telecommunication services to:

(a) An elementary or secondary public school; or

(b) A public library,

to establishdiscounts in the rates for the telecommunication services that the utilityprovides to that school or library. The amount of the discount must bedetermined by the Commission in a manner that is consistent with the provisionsof 47 U.S.C. 254.

2. The Commission shall adopt regulations that requireeach utility which provides telecommunication services to:

(a) Public or private nonprofit providers of healthcare which serve persons in rural areas; or

(b) Persons with low income and persons in rural,insular and high-cost areas,

to ensurethat such providers of health care and persons have access to telecommunicationservices that are reasonably comparable to those services available in urbanareas and that the rates for such services charged by the utility arereasonably comparable to those charged in the urban areas, to the extentrequired by the provisions of 47 U.S.C. 254.

3. The Commission shall adopt regulations which setforth the requirements for eligibility for persons with low income anddefinitions for rural, insular and high-cost areas.

4. Any regulations adopted pursuant to this sectionmust be consistent with the provisions of 47 U.S.C. 254.

(Added to NRS by 1997, 1902)(Substituted in revisionfor NRS 704.184)

NRS 704.6875 Customerentitled to written notice of duration of certain calls.

1. Except as otherwise provided in subsection 2, eachpublic utility which provides telecommunication services shall provide timelywritten notice to a customer of the duration of each call that is billed to thecustomer, reported in minutes, seconds or any fraction thereof, if the chargesfor the telecommunication services are calculated, in whole or in part, on thebasis of the duration of the call.

2. The provisions of this section do not apply tomeasured rate service that is regulated by the Commission.

(Added to NRS by 2003, 3036)

Competition Among Providers; Complaints

NRS 704.6881 Establishmentof standards and penalties to encourage competition and discouragediscrimination in provision of local telecommunication services. The Commission shall, by regulation:

1. Establish standards of performance and reportingregarding the provision of interconnection, unbundled network elements andresold services, which encourage competition and discourage discriminatoryconduct in the provision of local telecommunication services; and

2. Notwithstanding the provisions of NRS 703.320 to the contrary, establishpenalties and expedited procedures for imposing penalties upon a provider oftelecommunication services for actions that are inconsistent with the standardsestablished by the Commission pursuant to subsection 1. Such penalties mayinclude financial payment to the complaining provider of telecommunicationservices for a violation of the standards established by the Commissionpursuant to subsection 1, provided that any penalty paid must be deducted, withinterest, from any other award under any other judicial or administrativeprocedure for the same conduct in the same reporting period. Any penaltyimposed pursuant to this subsection is in lieu of the civil penalties set forthin NRS 703.380 and must be:

(a) Imposed for violating a standard or standardsestablished by regulations of the Commission pursuant to subsection 1;

(b) Determined by the Commission to further the goal ofencouraging competition or discouraging discriminatory conduct; and

(c) In an amount reasonable to encourage competition ordiscourage discriminatory conduct.

(Added to NRS by 1999, 1319)(Substitutedin revision for NRS 704.281)

NRS 704.6882 Establishmentof expedited procedures for certain complaints filed by provider againstanother provider. Notwithstanding the provisionsof NRS 703.310 and 703.320, the Commission shall establish byregulation expedited procedures for complaints filed by a provider oftelecommunication services against another provider of telecommunicationservices for any dispute arising under this chapter or chapter 703 of NRS, including specific proceduresfor interim relief that may include a preliminary decision by a singleCommissioner except as to the imposition of monetary penalties.

(Added to NRS by 1999, 1319)(Substitutedin revision for NRS 704.282)

NRS 704.6883 Judicialreview of certain decisions of Commission. Anyjudicial review of a decision by the Commission pursuant to NRS 704.6881 and 704.6882 must be made in accordance with NRS 703.373 to 703.376, inclusive.

(Added to NRS by 1999, 1319)(Substitutedin revision for NRS 704.283)

NRS 704.6884 Providersrequired to comply with state and federal consumer and antitrust protections;providers subject to laws governing unfair trade practices for violations ofstandards established by Commission. The provisionsof NRS 704.6881 to 704.6884, inclusive, must not be construedto exempt providers of telecommunication services from any other applicablestatute of this state or the United States relating to consumer and antitrustprotections. The exemption provided in paragraph (c) of subsection 3 of NRS 598A.040 does not apply to conductof, or actions taken by, a provider of telecommunication services in violationof the standards established pursuant to subsection 1 of NRS 704.6881.

(Added to NRS by 1999, 1319)(Substitutedin revision for NRS 704.284)

PAR Carriers

NRS 704.68904 Definitions. As used in NRS704.68904 to 704.68984, inclusive,unless the context otherwise requires, the words and terms defined in NRS 704.68908 to 704.68947, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1999, 1314; A 2003, 3041)

NRS 704.68908 Affectedperson defined. Affected person means:

1. A public utility affected by an action of a PARcarrier or an action of the Commission relating to a PAR carrier;

2. A person whose utility service or rates areaffected by an action of a PAR carrier or an action of the Commission relatingto a PAR carrier;

3. A competitive supplier; or

4. The Bureau of Consumer Protection in the Office ofthe Attorney General.

(Added to NRS by 1999, 1314; A 2003, 3041)

NRS 704.6891 Affiliateof an incumbent local exchange carrier and affiliate defined. Affiliate of an incumbent local exchange carrier oraffiliate means a competitive provider of telecommunication service that iscontrolled by or under common control with an incumbent local exchange carrierto the extent the competitive provider of telecommunication service is doingbusiness within any service territory in which its affiliated incumbent localexchange carrier has been designated by the Commission as the provider of lastresort of basic service.

(Added to NRS by 2003, 3035)

NRS 704.68912 Basicnetwork service defined. Basic networkservice means the provision of any of the following services, unless theCommission has reclassified the service as a competitive service, a deregulatedservice, a discretionary service or an other essential service pursuant to NRS 704.6896:

1. Farmer line service;

2. Flat rate service for residential lines;

3. Measured rate service for residential lines;

4. Flat rate service for residential trunk lines;

5. Flat rate service for business lines;

6. Measured rate service for business lines;

7. Flat rate service for business trunk lines;

8. Measured rate service for business trunk lines;

9. Suburban service access lines;

10. Toll station service access lines;

11. Universal lifeline service access lines;

12. Access to emergency 911 service; and

13. The first single-line directory listing.

(Added to NRS by 1999, 1315; A 2003, 3042)

NRS 704.68916 Competitiveservice defined. Competitive service means:

1. Any telecommunication service which is classifiedas a competitive service or a nonregulated service by regulation of theCommission, or which is reclassified as a competitive service pursuant to NRS 704.6896; and

2. The intraLATA toll services of an electing carrier.

(Added to NRS by 1999, 1315)

NRS 704.6892 Competitivesupplier defined. Competitive suppliermeans a person who:

1. Is a competitor of a PAR carrier with respect to aservice performed by the PAR carrier; or

2. Wants to enter into competition with a PAR carrier.

(Added to NRS by 1999, 1315; A 2003, 3042)

NRS 704.68922 Deregulatedservice defined. Deregulated service means:

1. Any voice messaging service or other informationservice; or

2. Any telecommunication service that the Commissionclassifies as a deregulated service pursuant to NRS 704.6896.

(Added to NRS by 2003, 3035)

NRS 704.68924 Discretionaryservice defined. Discretionary service meansany telecommunication service which is not otherwise classified as a basicnetwork service, a competitive service, a deregulated service or an otheressential service, or which is reclassified as a discretionary service pursuantto NRS 704.6896.

(Added to NRS by 1999, 1315; A 2003, 3042)

NRS 704.68928 ElectingPAR carrier defined. Electing PAR carriermeans a PAR carrier which:

1. Makes an election to become an electing PAR carrierpursuant to NRS 704.68948; and

2. Is regulated in the manner described in thatsection.

(Added to NRS by 1999, 1315; A 2003, 3042)

NRS 704.68932 Incumbentlocal exchange carrier defined. Incumbentlocal exchange carrier has the meaning ascribed to it in 47 U.S.C. 251(h)(1), as that section existed on October 1, 1999, and includes a localexchange carrier that is treated as an incumbent local exchange carrierpursuant to that section.

(Added to NRS by 1999, 1315)

NRS 704.68936 Localarea of transport and access or LATA defined. Localarea of transport and access or LATA means an area within which a providerof telecommunication services may operate pursuant to the order in UnitedStates v. American Telephone and Telegraph Co., 552 F. Supp. 131 (D.D.C.1982). The term is equivalent to local access and transport area as used inthat order.

(Added to NRS by 1999, 1315)

NRS 704.6894 Otheressential service defined. Other essentialservice means any telecommunication service that is classified as otheressential service by regulation of the Commission.

(Added to NRS by 1999, 1316)

NRS 704.68942 PARcarrier defined.

1. PAR carrier means an incumbent local exchangecarrier that is regulated under a plan of alternative regulation approved bythe Commission pursuant to subsection 4 of NRS704.040.

2. The term includes, but is not limited to, anelecting PAR carrier.

(Added to NRS by 2003, 3035)

NRS 704.68944 Pricefloor defined. Price floor means theminimum price of a service using cost-based standards as determined by theCommission by regulation.

(Added to NRS by 1999, 1316)

NRS 704.68946 Telecommunicationdefined. Telecommunication means thetransmission, between or among points specified by the user, of information ofthe users choosing, without change in the form or content of the informationsent and received, regardless of the facilities used.

(Added to NRS by 2003, 3035)

NRS 704.68947 Telecommunicationservice defined. Telecommunication servicemeans the offering of telecommunication for a fee directly to the public, orsuch classes of users as to be effectively available directly to the public,regardless of the facilities used.

(Added to NRS by 2003, 3035)

NRS 704.68948 Authority of PAR carrier to becomeelecting PAR carrier for purposes of regulation; procedure for making election.

1. A PAR carrier may make an election to become anelecting PAR carrier that is regulated pursuant to NRS 704.68952, 704.68956 and 704.6898. Such regulation is in additionto any other regulation that otherwise applies to the PAR carrier pursuant to NRS 704.68904 to 704.68984, inclusive.

2. To make an election pursuant to this section, thePAR carrier must file with the Commission a written statement of its electionto become an electing PAR carrier. The written statement must:

(a) Identify the PAR carrier; and

(b) Include the date that its election becomes effective.

(Added to NRS by 1999, 1316; A 2003, 3042)

NRS 704.68952 Regulationof electing PAR carrier: Limitations on power of Commission regarding earningsand rates; termination and continuation of plan of alternative regulation;limitations on receipt of money from fund created pursuant to NRS 704.040.

1. Except as otherwise provided in this section, if aPAR carrier makes an election to become an electing PAR carrier pursuant to NRS 704.68948, on and after the date thatthe election becomes effective:

(a) The electing PAR carrier is not subject to anyreview of earnings, monitoring of the rate base, or any other regulation by theCommission relating to the net income or rate of return of the electing PARcarrier;

(b) The Commission shall not consider the rate ofreturn, rate base or any other earnings of the electing PAR carrier inconnection with any change in rates;

(c) The Commission shall not decrease the rate of abasic network service provided by the electing PAR carrier unless the electingPAR carrier agrees to the decrease in the rate; and

(d) The electing PAR carrier shall not, during the termof its plan of alternative regulation, increase any rate that the electing PARcarrier charges for a basic network service, other than the rate for atelecommunication service that is:

(1) Reclassified pursuant to NRS 704.6896; or

(2) Offered by the electing PAR carrier pursuantto NRS 704.68964, 704.68968 or 704.68972.

2. An electing PAR carrier may terminate its plan ofalternative regulation at any time by filing with the Commission a notice ofits intention to terminate the plan. The termination is effective on the datethe electing PAR carrier specifies in the notice.

3. If an electing PAR carrier terminates its plan ofalternative regulation pursuant to subsection 2, the electing PAR carrier shallfile with the Commission a general rate application pursuant to subsection 3 ofNRS 704.110 not later than 180 daysafter the date that the termination of its plan of alternative regulationbecomes effective.

4. If an electing PAR carrier does not terminate itsplan of alternative regulation pursuant to subsection 2, the plan terminates atthe end of the first 5-year period after the date the plan becomes effectiveand at the end of each successive 5-year period after that date unless:

(a) Not later than 180 days before the end of the first5-year period after the date the plan becomes effective and at the end of eachsuccessive 5-year period after that date, the electing PAR carrier files withthe Commission a written request to continue its participation in the plan ofalternative regulation for another 5-year period; and

(b) The Commission grants the written request of theelecting PAR carrier to continue its participation in the plan of alternativeregulation for another 5-year period in accordance with the provisions of thissection.

5. If an electing PAR carrier files a written requestpursuant to subsection 4, the written request must be accompanied by a writtenreport prepared in a form prescribed by the Commission. The written reportmust:

(a) Contain a summary of the operations of the electingPAR carrier for the period covering the immediately preceding 5 fiscal years;and

(b) Include, but is not limited to, the rate of returnand earnings of the electing PAR carrier for the period specified in paragraph(a), other than the rate of return and earnings obtained from deregulatedservices.

6. Not later than 180 days after the date that anelecting PAR carrier files a written request pursuant to subsection 4, theCommission shall conduct and complete a proceeding to review the writtenrequest and report. The Commission shall not allow any person to be a party tothe proceeding other than the electing PAR carrier, the Regulatory OperationsStaff of the Commission and the staff of the Bureau of Consumer Protection inthe Office of the Attorney General.

7. In the proceeding, the Commission shall:

(a) Determine whether the existing rates of theelecting PAR carrier for basic network services are just and reasonablepursuant to subsection 1 of NRS 704.040;and

(b) Based upon that determination, issue an orderwhich:

(1) Grants the written request of the electingPAR carrier and authorizes the electing PAR carrier to participate in the planof alternative regulation for another 5 years; or

(2) Denies the written request of the electingPAR carrier and directs the electing PAR carrier to file with the Commission ageneral rate application pursuant to subsection 3 of NRS 704.110 not later than 180 days afterthe date the Commission issues the order.

8. Except for universal service support for lifelineor link-up services provided pursuant to 47 U.S.C. 214 or as otherwisedetermined by the Commission, an electing PAR carrier is not eligible toreceive money from the fund created pursuant to subsection 7 of NRS 704.040.

9. For the purposes of this section:

(a) The plan of alternative regulation for an electingPAR carrier shall be deemed to have a term of 5 years.

(b) If a PAR carrier is operating as an electing PARcarrier on July 1, 2003, the first 5-year term for its plan of alternativeregulation shall be deemed to begin on July 1, 2003.

(c) If a PAR carrier makes an election to become anelecting PAR carrier after July 1, 2003, the first 5-year term for its plan ofalternative regulation shall be deemed to begin on the date that its electionbecomes effective.

(Added to NRS by 1999, 1316; A 2003, 3043)

NRS 704.68956 Regulationof electing PAR carrier: Approval of Commission required to discontinue orchange terms and conditions relating to provision of certain basic networkservices. The provisions of NRS 704.68904 to 704.68984, inclusive, do not authorize anelecting PAR carrier, without the approval of the Commission, to discontinue orotherwise change the terms and conditions relating to the provision of thebasic network services identified in subsections 1 to 4, inclusive, of NRS 704.68912, as set forth in thetariffs of the electing PAR carrier that are in effect on October 1, 1999.

(Added to NRS by 1999, 1316; A 2003, 3045)

NRS 704.6896 Reclassificationof basic network services: Authority of Commission; adoption of criteria forreclassification; period for acting on request for reclassification from PARcarrier.

1. The Commission may, at any time, upon its ownmotion or that of any person, reclassify a basic network service, except accessto emergency 911 service.

2. The Commission shall establish by regulationcriteria for determining whether a service should be reclassified, except thatthe Commission shall not adopt criteria for determining whether a serviceshould be reclassified that would deny a request to reclassify a basic networkservice to another classification of service within an exchange where acompetitive supplier operates and provides that service, on the basis thatthere is not a competitive supplier of that service in any other portion of theState.

3. If the Commission receives a written request forreclassification from a PAR carrier, the Commission shall act upon the requestnot later than 120 days after the date the Commission receives the request.

(Added to NRS by 1999, 1316; A 2003, 3045)

NRS 704.68964 Flexibilityin pricing and terms of services: Authority of PAR carrier; procedure andrequirements for exercising flexibility; PAR carrier permitted to bill customerusing fixed price or amount for package of services.

1. A PAR carrier may, pursuant to this section and inaccordance with NRS 704.68976,exercise flexibility in the pricing, the terms or both the pricing and termsof:

(a) Any competitive service or discretionary service.The Commission shall not specify a maximum rate for any competitive service ordiscretionary service provided by the PAR carrier.

(b) Any package of services, which may include basicnetwork services, competitive services, discretionary services, other essentialservices and services and products that are not subject to the jurisdiction ofthe Commission. The Commission shall not specify a maximum rate for a packageof services provided by the PAR carrier.

(c) Any tariffed service, if the PAR carrier needs toexercise flexibility in the pricing, the terms or both the pricing and terms ofthe tariffed service in a contract for service to an individual customer, torespond to competition by one or more competitive suppliers in the market fortelecommunication service for business customers. The flexibility exercised bythe PAR carrier pursuant to this paragraph:

(1) May include, but is not limited to, usingvolume or term discounts, and modifications to tariffed terms and conditions;and

(2) May not be used to provide volume orduration discounts to rates or modifications to tariffed terms and conditionsfor telecommunication service for an offering made to all or any class ofbusiness customers.

2. Except as otherwise provided in this subsection, aPAR carrier may, upon 20-days notice to the Commission in writing, exerciseflexibility in the pricing, the terms or both the pricing and terms of anyservice or package of services that may be subject to such flexibility pursuantto subsection 1, and the PAR carrier is exempt, with respect to the pricing ofeach such service or package of services, from the provisions of NRS 704.100 and 704.110 and the regulations of theCommission relating thereto. The notice must include a description inreasonable detail of:

(a) The characteristics of each service or package ofservices that will be subject to such flexibility;

(b) The terms and conditions applicable to each serviceor package of services;

(c) The nature of any limitations on the duration orgeographical availability of each service or package of services;

(d) The price or prices of each service or package ofservices;

(e) A certificate which provides that:

(1) The PAR carrier has prepared a cost study ofthe price floor to support the price or prices of each service that will besubject to such flexibility or each service included in the package of servicesthat will be subject to such flexibility; and

(2) On and after the date on which the notice isfiled with the Commission, any affected person may, upon request, inspect andcopy the cost study, subject to reasonable terms and conditions of anyapplicable confidentiality and nondisclosure agreement relating to the serviceor package of services; and

(f) A form of notice that will be posted by theCommission.

The noticerequirements of this subsection do not apply to a PAR carrier with respect tothe pricing or terms of any competitive service or any package of servicescomprised exclusively of competitive services.

3. The price or prices of each service that is subjectto flexibility pursuant to this section must not be lower than the price floorfor that service. The price or prices of each package of services that issubject to flexibility pursuant to this section must not be lower than thelesser of:

(a) The sum of the price floors for each serviceincluded in the package; or

(b) The sum of the prices of the basic networkservices, as set forth in the tariffs of the PAR carrier, and the price floorsfor each of the other services included in the package.

4. Each service included in a package of services thatis subject to flexibility pursuant to this section must be made available on anindividual basis.

5. A PAR carrier must provide 20-days notice to the Commissionin writing before the PAR carrier may implement any amendment or change to aservice or package of services which is subject to flexibility pursuant to thissection and for which the PAR carrier had previously provided notice to theCommission pursuant to subsection 2.

6. Notwithstanding any other provision of law, if aPAR carrier charges a customer a fixed price or amount for a package ofservices that is subject to flexibility pursuant to this section, the PARcarrier, in any bill or statement for the package of services, is permitted tospecify only the fixed price or amount for the package of services and is notrequired to:

(a) Identify each separate service or componentincluded in the package of services; or

(b) Specify the unit price or amount charged for eachseparate service or component included in the package of services.

(Added to NRS by 1999, 1317; A 2001, 3251; 2003, 3045)

NRS 704.68966 Flexibilityin pricing and terms of services: Prohibition against anticompetitive acts andpractices and unreasonable discrimination among similarly situated customers. In exercising flexibility in the pricing or terms of itsservices pursuant to NRS 704.68904 to 704.68984, inclusive, a PAR carrier shallnot engage in any anticompetitive act or practice or unreasonably discriminateamong similarly situated customers.

(Added to NRS by 2003, 3035)

NRS 704.68968 Promotionalprice reductions: Notice; duration; geographic area; nondiscriminatory basis. A PAR carrier may establish promotional price reductionsfor services upon a 1-day notice to the Commission. The promotional pricereduction for a service may be offered for not more than 90 days during any 12consecutive months and must be given in all geographic areas served by the PARcarrier, where facilities permit, on a nondiscriminatory basis during the12-month period.

(Added to NRS by 1999, 1317; A 2003, 3047)

NRS 704.68972 Introductionof new services: Notice; conditions; exemption from certain regulations ofCommission; classification; price.

1. A PAR carrier may introduce new services upon10-days notice to the Commission in writing. The notice must include adescription in reasonable detail of:

(a) The characteristics of each new service;

(b) The terms and conditions applicable to each newservice;

(c) The nature of any limitations on the duration orgeographical availability of each new service;

(d) The price or prices of each new service; and

(e) A certificate which provides that:

(1) The PAR carrier has prepared a cost study ofthe price floor to support the price or prices of each new service; and

(2) On and after the date on which the notice isfiled with the Commission, any affected person may, upon request, inspect andcopy the cost study, subject to reasonable terms and conditions of anyapplicable confidentiality and nondisclosure agreement.

2. Each new service is subject to the conditions setforth in NRS 704.68964.

3. Each new service is exempt from the provisions of NRS 704.100 and 704.110 and the regulations of theCommission relating thereto.

4. Unless otherwise classified by the Commission as aderegulated service pursuant to its regulations, a new service must beclassified as a competitive service for which the Commission shall not specifya maximum rate. The PAR carrier shall set the price of the new service abovethe price floor for that service.

5. As used in this section, a new service means atelecommunication service:

(a) That provides a function, feature or capabilitywhich is materially different from any service or services previously offeredby the carrier; or

(b) Combines two or more previously provided newservices.

(Added to NRS by 1999, 1318; A 2001, 3252; 2003, 3047)

NRS 704.68976 Ratesfor services to be averaged geographically; exception.The rates charged by a PAR carrier for services, except for competitiveservices, must be geographically averaged throughout the service territory inwhich the PAR carrier is the provider of last resort, as determined pursuant toregulations adopted by the Commission, or within such other smaller geographicarea as the Commission deems appropriate to balance the interests of allcustomers and providers.

(Added to NRS by 1999, 1318; A 2003, 3047)

NRS 704.6898 Intrastateaccess prices: Maximum amount; offset of reductions. Theintrastate access prices charged by an electing PAR carrier must not exceed theinterstate access prices charged by the electing PAR carrier as authorized bythe Federal Communications Commission for corresponding elements, and anyresulting reductions must be offset on a revenue-neutral basis with adjustmentsto other essential retail services subject to regulation by the Commission.

(Added to NRS by 1999, 1318; A 2003, 3048)

NRS 704.68984 Powersand duties of Commission and PAR carriers under certain federal and state lawspreserved. The provisions of NRS 704.684 and 704.68904 to 704.68984, inclusive, do not:

1. Apply to the Commission in connection with anyactions or decisions required or permitted by the Telecommunications Act of1996, Public Law 104-104, 110 Stat. 56-161; or

2. Limit or modify:

(a) The duties of a PAR carrier to a competitivesupplier regarding the provision of network interconnection, unbundled networkelements and resold services under the provisions of the Telecommunications Actof 1996, Public Law 104-104, 110 Stat. 56-161; or

(b) The authority of the Commission to act pursuant to NRS 704.6881 and 704.6882.

(Added to NRS by 1999, 1318; A 2003, 3048)

ELECTRIC SERVICE

Conversion of Certain Generation Facilities

NRS 704.701 Definitions. As used in NRS 704.701to 704.731, inclusive, unless thecontext otherwise requires:

1. Coal includes anthracite, bituminous orsubbituminous coal, and lignite.

2. Cost of the conversion means the cost determinedby the Commission to be reasonable and necessary for a conversion, includingthe cost of:

(a) Engineering, administration and any legal expenses;

(b) Environmental studies and control equipment;

(c) Equipment and facilities for the handling, storageand combustion of coal;

(d) Equipment and facilities for the handling, storageand disposal of the resulting waste, regardless of their location;

(e) Adapting or refurbishing boilers to permit thecombustion of coal; and

(f) Interest and other expenses relating to thefinancing of the conversion,

whether ornot those costs are incurred before the date of initial conversion. The termdoes not include any costs incurred to expand the facilitys generatingcapacity during the conversion.

3. Cost saved means the difference in cost betweenan amount of coal and an equal amount of gas or oil calculated on the basis ofBritish thermal units.

4. Date of initial conversion means the first day onwhich an existing facility for the generation of electricity which was fired bygas or oil generates electricity for continuous distribution to customers bythe combustion of coal, whether or not additional work must be performed tocomplete construction on or the conversion of the facility.

(Added to NRS by 1983, 751)

NRS 704.706 Conversionof facility to allow firing by coal: Application for adjustment of rates;public hearing.

1. A public utility proposing to convert an existingfacility in this state for the generation of electricity which is fired by gasor oil to a facility which is also capable of being fired by coal may apply tothe Commission for an adjustment in its rates to permit its recovery of thecost of the conversion.

2. After receipt of such an application, theCommission shall hold a public hearing within 120 days to consider whether toauthorize such an adjustment and, if authorized, the methods to be used topermit the recovery.

(Added to NRS by 1983, 752)

NRS 704.711 Decisionon application for adjustment; conditions; requirements for approval; federalor state grants.

1. The Commission shall render its written decisionwithin 180 days after receiving the application for such an adjustment.

2. The Commission shall render its decision based onthe record and may grant the application, deny it or grant it according to suchterms, conditions or modifications as the Commission finds appropriate.

3. The Commission may grant an application for such anadjustment if it determines that:

(a) There is substantial evidence that the projectedsaving in fuel is greater than the cost of conversion.

(b) The conversion is consistent with and included inthe utilitys plan for resources.

(c) The conversion will substantially benefit theutilitys customers.

4. If the applicant becomes, by reason of theconversion, entitled to any federal or state grant, the Commission shall makesuch determinations and issue such orders as are necessary to reduce the amountof the cost of the conversion which the applicant would otherwise recover bymeans of the adjustment. If such a grant is received after the termination ofthe adjustment, the Commission shall make such determinations and issue suchorders as are necessary to return any excess collected to the customers.

(Added to NRS by 1983, 752)

NRS 704.716 Calculationof amount of adjustment; effect on rates, prices and charges.

1. The amount of the adjustment must:

(a) Permit the applicant to recover the cost of theconversion, net of any taxes which may be imposed on the applicant for revenuereceived because of the adjustment, within the period of recovery authorized bythe Commission.

(b) Be at least two-thirds, but not more thanthree-fourths, of the cost of the fuel saved.

2. The Commission shall not recognize, whencalculating any rate, price or charge, other than the amount of the adjustment,the costs of the conversion subject to the requirements of this section.

(Added to NRS by 1983, 752)

NRS 704.721 Filingof tariff on date of conversion. On the dateof initial conversion, the public utility shall file with the Commission atariff which sets forth the adjustment in the rates authorized as a result ofthe conversion.

(Added to NRS by 1983, 752)

NRS 704.726 Annualaccounting of cost of conversion and revenues from adjustment in rates; terminationof adjustment upon recovery of cost of conversion.

1. A public utility shall annually present to theCommission a certified accounting of the cost of conversion and an accountingof the revenues it has received in that year from the adjustment in its rates.

2. When a public utility has fully recovered its shareof the cost of conversion and the debt and interest thereon are paid, or at theend of the period set for the recovery, whichever is sooner, it shall:

(a) Stop the adjustment;

(b) Rescind the applicable tariff;

(c) Present the Commission with proof of the publicutilitys compliance with all orders of the Commission regarding theadjustment; and

(d) Present the Commission with a complete accountingof the cost of conversion and revenues it has received through the adjustment.

3. If the proof so presented in subsection 2 showsthat the revenue collected pursuant to the adjustment is not equal to thepublic utilitys share of the cost of the conversion, the Commission shallorder any actions necessary to return any excess or collect the amount stillneeded for full recovery.

(Added to NRS by 1983, 752)

NRS 704.731 Faithof State pledged. The faith of the State ishereby pledged that NRS 704.701 to 704.731, inclusive, will not be repealed,amended or modified to impair any tariff or charge ordered by the Commissionpursuant to those sections.

(Added to NRS by 1983, 753)

Optional Pricing and Resource Planning

NRS 704.736 Applicability. The application of NRS704.736 to 704.751, inclusive, islimited to any public utility in the business of supplying electricity whichhas an annual operating revenue in this state of $2,500,000 or more.

(Added to NRS by 1983, 886; A 1995, 1105)

NRS 704.738 Programof optional pricing for electricity generated from renewable energy:Authorization of Commission required; Commission may authorize higher rates.

1. A utility which supplies electricity in this statemay apply to the Commission for authority to charge, as part of a program ofoptional pricing, a higher rate for electricity that is generated fromrenewable energy.

2. The program may provide the customers of theutility with the option of paying a higher rate for electricity to support theincreased use by the utility of renewable energy in the generation ofelectricity.

3. As used in this section, renewable energy has themeaning ascribed to it in NRS 704.7811.

(Added to NRS by 1995, 1104; A 2001, 2530, 3253)(Substitutedin revision for NRS 704.743)

NRS 704.741 Planto increase supply or decrease demands: Triennial submission required; contentsprescribed by regulation.

1. A utility which supplies electricity in this stateshall, on or before July 1 of every third year, in the manner specified by theCommission, submit a plan to increase its supply of electricity or decrease thedemands made on its system by its customers to the Commission.

2. The Commission shall, by regulation, prescribe thecontents of such a plan including, but not limited to, the methods or formulaswhich are used by the utility to:

(a) Forecast the future demands; and

(b) Determine the best combination of sources of supplyto meet the demands or the best method to reduce them.

(Added to NRS by 1983, 886; A 1987, 961)

NRS 704.746 Publichearing on adequacy of plan; determination by Commission.

1. Not more than 60 days after a utility has filed itsplan, the Commission shall convene a public hearing on the adequacy of theplan.

2. At the hearing any interested person may makecomments to the Commission regarding the contents and adequacy of the plan.

3. After the hearing the Commission shall determinewhether:

(a) The forecast requirements of the utility are basedon substantially accurate data and an adequate method of forecasting.

(b) The plan identifies and takes into account anypresent and projected reductions in the demand for energy that may result frommeasures to improve energy efficiency in the industrial, commercial,residential and energy producing sectors of the area being served.

(c) The plan adequately demonstrates the economic,environmental and other benefits to this state and to the customers of theutility, associated with the following possible measures and sources of supply:

(1) Improvements in energy efficiency;

(2) Pooling of power;

(3) Purchases of power from neighboring statesor countries;

(4) Facilities that operate on solar orgeothermal energy or wind;

(5) Facilities that operate on the principle ofcogeneration or hydrogeneration; and

(6) Other generation facilities.

4. The Commission may give preference to the measuresand sources of supply set forth in paragraph (c) of subsection 3 that:

(a) Provide the greatest economic and environmentalbenefits to the State;

(b) Are consistent with the provisions of this section;and

(c) Provide levels of service that are adequate andreliable.

5. The Commission shall:

(a) Adopt regulations which determine the level ofpreference to be given to those measures and sources of supply; and

(b) Consider the value to the public of using waterefficiently when it is determining those preferences.

(Added to NRS by 1983, 887; A 1989, 1607; 1991, 524)

NRS 704.751 Orderaccepting plan or specifying inadequacies; recovery of costs from customers.

1. Within 135 days after a utility has filed its plan,the Commission shall issue an order accepting the plan as filed or specifyingany portions of the plan it deems to be inadequate.

2. All prudent and reasonable expenditures made todevelop the utilitys plan, including environmental, engineering and otherstudies, must be recovered from the rates charged to the utilitys customers.

(Added to NRS by 1983, 887; A 1989, 1014)

Disposal of Generation Assets

NRS 704.7561 Definitions. As used in NRS704.7561 to 704.7595, inclusive,unless the context otherwise requires, the words and terms defined in NRS 704.7565 to 704.7581, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 2001, 343)

NRS 704.7565 Affiliatedefined. Affiliate means a person who,directly or indirectly through one or more intermediaries, controls, iscontrolled by or is under common control with an electric utility.

(Added to NRS by 2001, 343)

NRS 704.7568 Disposeof a generation asset defined. Dispose of ageneration asset means to:

1. Sell, lease, assign, transfer or divest an interestin a generation asset, in whole or in part, to another person; or

2. Perform any promise, covenant or obligation tosell, lease, assign, transfer or divest an interest in a generation asset, inwhole or in part, to another person pursuant to the terms of a contract oragreement executed before, on or after April 18, 2001, unless, before April 18,2001:

(a) All terms and conditions of the contract oragreement were satisfied; and

(b) All parties to the contract or agreement fullyperformed all promises, covenants and obligations under the contract oragreement.

(Added to NRS by 2001, 343)

NRS 704.7571 Electricutility defined.

1. Electric utility means:

(a) Any public utility or successor in interest that:

(1) Is in the business of providing electricservice to customers;

(2) Holds a certificate of public convenienceand necessity issued or transferred pursuant to this chapter; and

(3) In the most recently completed calendar yearor in any other calendar year within the 7 calendar years immediately precedingthe most recently completed calendar year, had a gross operating revenue of$250,000,000 or more in this state;

(b) A subsidiary or affiliate of such a public utility;

(c) A holding company or other person that holds acontrolling interest in such a public utility; and

(d) A successor in interest to any public utility,subsidiary, affiliate, holding company or person described in paragraph (a),(b) or (c).

2. The term does not include a cooperativeassociation, nonprofit corporation, nonprofit association or provider ofelectric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service onlyto its members.

(Added to NRS by 2001, 343)

NRS 704.7575 Generationasset defined.

1. Generation asset means any plant, facility,equipment or system that:

(a) Converts other forms of energy into electricity orotherwise produces electricity;

(b) Is or was owned, possessed, controlled, leased,operated, administered, maintained, acquired or placed into service by anelectric utility before, on or after January 1, 2001;

(c) Is subject, in whole or in part, to regulation bythe Commission; and

(d) Is used and useful for the convenience of thepublic in this state, as determined by the Commission.

2. The term does not include:

(a) Any hydroelectric plant, facility, equipment orsystem which has a generating capacity of not more than 15 megawatts and whichis located on the Truckee River or on a waterway that is appurtenant to orconnected to the Truckee River.

(b) Any net metering system, as defined in NRS 704.771.

(Added to NRS by 2001, 344)

NRS 704.7578 Interestin a generation asset defined.

1. Interest in a generation asset means anyinterest, in whole or in part, in the physical plant, facility, equipment orsystem that makes up the generation asset, whether such interest is legal orequitable, present or future, or contingent or vested.

2. The term does not include any interest in theelectricity or other energy produced by the generation asset.

(Added to NRS by 2001, 344)

NRS 704.7581 Persondefined. Person means:

1. A natural person;

2. Any form of business or social organization and anyother nongovernmental legal entity, including, without limitation, acorporation, partnership, association, trust or unincorporated organization;

3. A government or an agency or instrumentality of agovernment, including, without limitation, this state or an agency orinstrumentality of this state; and

4. A political subdivision of this state or of anyother government or an agency or instrumentality of a political subdivision ofthis state or of any other government.

(Added to NRS by 2001, 344)

NRS 704.7585 Provisionsdo not prohibit certain transactions involving generation assets or otherproperty. The provisions of NRS 704.7561 to 704.7595, inclusive, do not prohibit anelectric utility from pledging, mortgaging, granting a security interest in orotherwise encumbering any of its generation assets or other property for thepurpose of securing indebtedness of the electric utility which exists on April18, 2001, or which is issued or incurred by the electric utility after April18, 2001, in financing transactions approved by the Commission.

(Added to NRS by 2001, 3269)

NRS 704.7588 Conditionsand limitations on disposal of generation assets; approval of Commissionrequired; application; parties; effect of certain orders. Except as otherwise provided in NRS 704.7591:

1. Before July 1, 2003, an electric utility shall notdispose of a generation asset.

2. On or after July 1, 2003, an electric utility shallnot dispose of a generation asset unless, before the disposal, the Commissionapproves the disposal by a written order issued in accordance with theprovisions of this section.

3. Not sooner than January 1, 2003, an electricutility may file with the Commission an application to dispose of a generationasset on or after July 1, 2003. If an electric utility files such anapplication, the Commission shall not approve the application unless theCommission finds that the disposal of the generation asset will be in thepublic interest. The Commission shall issue a written order approving or disapprovingthe application. The Commission may base its approval of the application uponsuch terms, conditions or modifications as the Commission deems appropriate.

4. If an electric utility files an application todispose of a generation asset, the Consumers Advocate shall be deemed a partyof record.

5. If the Commission approves an application todispose of a generation asset before July 1, 2003, the order of the Commissionapproving the application:

(a) May not become effective sooner than July 1, 2003;

(b) Does not create any vested rights before the effectivedate of the order; and

(c) For the purposes of NRS 703.373, shall be deemed a finaldecision on the date on which the order is issued by the Commission.

(Added to NRS by 2001, 344)

NRS 704.7591 Conditionsand limitations on disposal of generation assets pursuant to certain mergers,acquisitions, transactions and transfers.

1. An electric utility may dispose of its generationassets pursuant to a merger, acquisition or transaction that is authorizedpursuant to NRS 704.329 or pursuant to atransfer of its certificate of public convenience and necessity that isauthorized pursuant to NRS 704.410, if:

(a) The electric utility disposes of substantially allof its generation assets and substantially all of its other assets to the otherperson in the merger, acquisition, transaction or transfer; and

(b) The other person in the merger, acquisition,transaction or transfer is not a subsidiary or affiliate of the electricutility or a holding company or other person that holds a controlling interestin the electric utility.

2. Any person who assumes or has assumed ownership,possession, control, operation, administration or maintenance of a generationasset pursuant to a merger, acquisition, transaction or transfer described in subsection1 is subject to the provisions of NRS704.7561 to 704.7595, inclusive.

(Added to NRS by 2001, 345)

NRS 704.7595 Effectof violation. If an electric utility disposesof a generation asset in violation of NRS704.7561 to 704.7595, inclusive,the disposal is void and unenforceable and is not valid for any purpose.

(Added to NRS by 2001, 345)

Disclosures to Customers

NRS 704.763 Electricutility required to disclose certain information to retail customers; format,contents and methods of disclosure; regulations; exceptions.

1. On and after October 1, 2001, each electric utilityshall disclose to its retail customers information about electric services, andany products and services relating thereto, that are being provided to orpurchased for those retail customers by the electric utility. The disclosuremust:

(a) Be in a standard, uniform format established by theCommission by regulation;

(b) Be included:

(1) At least two times each calendar year, as aninsert in the bills that the electric utility sends to its retail customers;and

(2) If the electric utility maintains a websiteon the Internet or any successor to the Internet, on that website; and

(c) Include adequate information so that a retailcustomer can readily evaluate his options for obtaining electric services orany products or services relating thereto.

2. A disclosure required by this section must include,if applicable:

(a) The average mix of energy sources used to generatethe electricity sold by the electric utility to the retail customer. Anelectric utility may, if available, use a regional average that has beendetermined by the Commission for that portion of electricity sold by theelectric utility to the retail customer for which the specific mix of energysources cannot be discerned.

(b) The average emissions, measured in pounds permegawatt-hour, of:

(1) Any high-level radioactive waste, sulfurdioxide, carbon dioxide, oxides of nitrogen and heavy metals released in thisstate from the generation of the electricity sold by the electric utility tothe retail customer; and

(2) Any other substances released in this statefrom the generation of the electricity sold by the electric utility to theretail customer which the Commission, in cooperation with the Division ofEnvironmental Protection of the State Department of Conservation and NaturalResources, determines may cause a significant health or environmental impactand for which sufficiently accurate and reliable data is available.

If anelectric utility uses a regional average for the mix of energy sources pursuantto paragraph (a), the electric utility shall, if available, use for the averageemissions pursuant to this paragraph a regional calculation that has beendetermined by the Commission.

(c) Information concerning customer service.

(d) Information concerning any energy programs thatprovide assistance to retail customers with low incomes, including, withoutlimitation, information on the procedures to apply for such programs.

3. An electric utility:

(a) Shall make the disclosures required pursuant tothis section in accordance with the requirements adopted by the Commission asto form and substance; and

(b) Shall ensure that it provides the information incompliance with all applicable state and federal laws governing unfairadvertising and labeling.

4. The Commission shall adopt such regulationsconcerning form and substance for the disclosures required by this section asare necessary to ensure that retail customers are provided with sufficientinformation so that they can readily evaluate their options for obtainingelectric services and any products and services relating thereto.

5. The provisions of this section do not require anelectric utility to disclose to its retail customers any information aboutelectric services, and any products and services relating thereto, that aresubject to the provisions of chapter 704B ofNRS.

6. As used in this section:

(a) Electric utility has the meaning ascribed to itin NRS 704.187.

(b) Energy source includes, without limitation:

(1) Coal, natural gas, oil, propane and anyother fossil fuel;

(2) Geothermal energy, solar energy,hydroelectric energy, nuclear energy, wind, biofuel and biomass; and

(3) Any other specific energy source that isused to generate the electricity provided to the retail customer.

(Added to NRS by 2001, 1654; A 2001, 3267)

Net Metering Systems

NRS 704.766 Legislativedeclaration. It is hereby declared to be thepurpose and policy of the Legislature in enacting NRS 704.766 to 704.775, inclusive, to:

1. Encourage private investment in renewable energyresources;

2. Stimulate the economic growth of this State; and

3. Enhance the continued diversification of the energyresources used in this State.

(Added to NRS by 1997, 777)

NRS 704.767 Definitions. As used in NRS 704.766to 704.775, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 704.768 to 704.772, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1997, 777; A 2001, 3253)

NRS 704.768 Customer-generatordefined. Customer-generator means a user ofa net metering system.

(Added to NRS by 1997, 777)

NRS 704.769 Netmetering defined. Net metering meansmeasuring the difference between the electricity supplied by a utility and theelectricity generated by a customer-generator which is fed back to the utilityover the applicable billing period.

(Added to NRS by 1997, 777)

NRS 704.771 Netmetering system defined. Net meteringsystem means a facility or energy system for the generation of electricity that:

1. Uses renewable energy as its primary source ofenergy to generate electricity;

2. Has a generating capacity of not more than 150kilowatts;

3. Is located on the customer-generators premises;

4. Operates in parallel with the utilitys transmissionand distribution facilities; and

5. Is intended primarily to offset part or all of thecustomer-generators requirements for electricity.

(Added to NRS by 1997, 777; A 2001, 3253; 2003, 1874; 2005, 1816)

NRS 704.7715 Renewableenergy defined. Renewable energy has themeaning ascribed to it in NRS 704.7811.

(Added to NRS by 2001, 3242)

NRS 704.772 Utilitydefined. Utility means a public utility thatsupplies electricity in this state.

(Added to NRS by 1997, 777)

NRS 704.773 Utilityrequired to offer net metering; limitations; rights and duties regarding energymeters and imposition of certain fees and charges.

1. A utility shall offer net metering, as set forth inNRS 704.775, to the customer-generatorsoperating within its service area until the cumulative capacity of all such netmetering systems is equal to 1 percent of the utilitys peak capacity.

2. If the net metering system of a customer-generatorwho accepts the offer of a utility for net metering has a capacity of not morethan 30 kilowatts, the utility:

(a) Shall offer to make available to thecustomer-generator an energy meter that is capable of registering the flow ofelectricity in two directions.

(b) May, at its own expense and with the writtenconsent of the customer-generator, install one or more additional meters tomonitor the flow of electricity in each direction.

(c) Shall not charge a customer-generator any fee orcharge that would increase the customer-generators minimum monthly charge toan amount greater than that of other customers of the utility in the same rateclass as the customer-generator.

3. If the net metering system of a customer-generatorwho accepts the offer of a utility for net metering has a capacity of more than30 kilowatts, the utility may:

(a) Require the customer-generator to install at itsown cost an energy meter that is capable of measuring generation output andcustomer load.

(b) Charge the customer-generator any applicable fee orcharge charged to other customers of the utility in the same rate class as thecustomer-generator, including, without limitation, customer, demand andfacility charges.

(Added to NRS by 1997, 778; A 2001, 3253; 2005, 1816)

NRS 704.774 Standards;utility prohibited from requiring certain customer-generators to meetadditional requirements.

1. A net metering system used by a customer-generatormust meet all applicable safety and power quality standards established by:

(a) The National Electrical Code;

(b) Underwriters Laboratories Inc.; and

(c) The Institute of Electrical and ElectronicEngineers.

2. A customer-generator whose net metering systemmeets such safety and quality standards must not be required by the utility to:

(a) Comply with additional standards or requirements;

(b) Perform additional tests;

(c) Install additional controls; or

(d) Purchase additional liability insurance,

arisingsolely from his status as a customer-generator.

(Added to NRS by 1997, 778)

NRS 704.775 Billing;calculation of net energy measurement; treatment of excess electricity; certainexcess electricity deemed electricity generated or acquired from renewableenergy system for purposes of portfolio standard.

1. The billing period for net metering must be amonthly period.

2. If a customer-generators net metering system has acapacity of not more than 30 kilowatts, the net energy measurement must becalculated in the following manner:

(a) The utility shall measure, in kilowatt hours, thenet electricity produced or consumed during the billing period, in accordancewith normal metering practices.

(b) If the electricity supplied by the utility exceedsthe electricity generated by the customer-generator which is fed back to theutility during the billing period, the customer-generator must be billed forthe net electricity supplied by the utility.

(c) If the electricity generated by thecustomer-generator which is fed back to the utility exceeds the electricitysupplied by the utility during the billing period:

(1) Neither the utility nor thecustomer-generator is entitled to compensation for electricity provided to theother during the billing period.

(2) The excess electricity which is fed back tothe utility during the billing period is carried forward to the next billingperiod as an addition to the kilowatt hours generated by the customer-generatorin that billing period. If the customer-generator is billed for electricitypursuant to a time-of-use rate schedule, the excess electricity carried forwardmust be added to the same time-of-use period as the time-of-use period in whichit was generated unless the subsequent billing period lacks a correspondingtime-of-use period. In that case, the excess electricity carried forward mustbe apportioned evenly among the available time-of-use periods.

(3) Excess electricity may be carried forward tosubsequent billing periods indefinitely, but a customer-generator is notentitled to receive compensation for any excess electricity that remains if:

(I) The net metering system ceases tooperate or is disconnected from the utilitys transmission and distributionfacilities;

(II) The customer-generator ceases to be acustomer of the utility at the premises served by the net metering system; or

(III) The customer-generator transfers thenet metering system to another person.

(4) The excess electricity which is fed back tothe utility shall be deemed to be electricity that the utility generated oracquired from a renewable energy system for the purposes of complying with itsportfolio standard pursuant to NRS 704.7801to 704.7828, inclusive.

3. If a customer-generators net metering system has acapacity of more than 30 kilowatts, the net energy measurement must becalculated in the following manner:

(a) The utility shall:

(1) Measure, in kilowatt hours, the amount ofelectricity supplied by the utility to the customer-generator during thebilling period and calculate its value using the tariff that would beapplicable if the customer-generator did not use a net metering system; and

(2) Measure, in kilowatt hours, the amount ofelectricity generated by the customer-generator which is fed back to theutility during the billing period and calculate its value at a rate that isconsistent with the rate used to calculate the value of the electricitysupplied by the utility.

(b) If the value of electricity supplied by the utilityexceeds the value of the electricity generated by the customer-generator whichis fed back to the utility during the billing period, the customer-generatormust be billed for the net value of the electricity supplied by the utility.

(c) If the value of the electricity generated by thecustomer-generator which is fed back to the utility exceeds the value of theelectricity supplied by the utility during the billing period:

(1) Neither the utility nor thecustomer-generator is entitled to compensation for the value of the electricityprovided to the other during the billing period.

(2) The value of the excess electricity:

(I) Must not be shown as a credit on thecustomer-generators bill for that billing period but must be reflected as acredit that is carried forward to offset the value of the electricity suppliedby the utility during a subsequent billing period. At the discretion of theutility, the credit may be in a dollar amount or in kilowatt hours. If thecredit is reflected as excess electricity and the customer-generator is billedfor electricity pursuant to a time-of-use rate schedule, the excess electricitycarried forward must be added to the same time-of-use period as the time-of-useperiod in which it was generated unless the subsequent billing period lacks acorresponding time-of-use period. In that case, the excess electricity carriedforward must be apportioned evenly among the available time-of-use periods.Excess electricity may be carried forward to subsequent billing periodsindefinitely, but a customer-generator is not entitled to receive compensationfor any excess electricity that remains if the net metering system ceases tooperate or is disconnected from the utilitys transmission and distributionfacilities, the customer-generator ceases to be a customer of the utility atthe premises served by the net metering system or the customer-generatortransfers the net metering system to another person.

(II) Does not reduce any other fee orcharge imposed by the utility.

(3) The excess electricity which is fed back tothe utility shall be deemed to be electricity that the utility generated oracquired from a renewable energy system for the purposes of complying with itsportfolio standard pursuant to NRS 704.7801to 704.7828, inclusive.

4. A bill for electrical service is due at the timeestablished pursuant to the terms of the contract between the utility and thecustomer-generator.

(Added to NRS by 1997, 778; A 2001, 3254; 2005, 1816; 2005, 22nd SpecialSession, 81)

Portfolio Standard

NRS 704.7801 Definitions. As used in NRS704.7801 to 704.7828, inclusive,unless the context otherwise requires, the words and terms defined in NRS 704.7802 to 704.7819, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 2001, 2526; A 2003, 806, 1874; 2005, 22nd SpecialSession, 82)

NRS 704.7802 Energyefficiency measure defined.

1. Energy efficiency measure means any measuredesigned, intended or used to improve energy efficiency if:

(a) The measure is installed on or after January 1,2005, at the service location of a retail customer of a provider of electricservice in this State;

(b) The measure reduces the consumption of energy bythe retail customer; and

(c) The costs ofthe acquisition or installation of the measure are directly reimbursed, inwhole or in part, by the provider of electric service.

2. The term does not include:

(a) Any demand response measure or load limitingmeasure that shifts the consumption of energy by a retail customer from oneperiod to another period.

(b) Any solar energy system which qualifies as arenewable energy system and which reduces the consumption of electricity or anyfossil fuel.

(Added to NRS by 2005, 22nd SpecialSession, 80)

NRS 704.7803 Portfolioenergy credit defined. Portfolio energycredit means any credit which a provider has earned from a portfolio energysystem or efficiency measure and which the provider is entitled to use tocomply with its portfolio standard, as determined by the Commission.

(Added to NRS by 2005, 22nd SpecialSession, 80)

NRS 704.7804 Portfolioenergy system or efficiency measure defined. Portfolioenergy system or efficiency measure means:

1. Any renewable energy system; or

2. Any energy efficiency measure.

(Added to NRS by 2005, 22nd SpecialSession, 80)

NRS 704.7805 Portfoliostandard defined. Portfolio standard meansthe amount of electricity that a provider must generate, acquire or save fromportfolio energy systems or efficiency measures, as established by theCommission pursuant to NRS 704.7821.

(Added to NRS by 2001, 2527; A 2003, 1875; 2005, 22nd SpecialSession, 82)

NRS 704.7808 Providerof electric service and provider defined.

1. Provider of electric service and provider meanany person or entity that is in the business of selling electricity to retailcustomers for consumption in this state, regardless of whether the person orentity is otherwise subject to regulation by the Commission.

2. The term includes, without limitation, a providerof new electric resources that is selling electricity to an eligible customerfor consumption in this state pursuant to the provisions of chapter 704B of NRS.

3. The term does not include:

(a) This state or an agency or instrumentality of thisstate.

(b) A rural electric cooperative established pursuantto chapter 81 of NRS.

(c) A general improvement district established pursuantto chapter 318 of NRS.

(d) A utility established pursuant to chapter 709 or 710of NRS.

(e) A cooperative association, nonprofit corporation,nonprofit association or provider of electric service which is declared to be apublic utility pursuant to NRS 704.673and which provides service only to its members.

(f) A landlord of a mobile home park or owner of acompany town who is subject to any of the provisions of NRS 704.905 to 704.960, inclusive.

(g) A landlord who pays for electricity that isdelivered through a master meter and who distributes or resells the electricityto one or more tenants for consumption in this state.

(Added to NRS by 2001, 2527; A 2001, 3273)

NRS 704.7809 Qualifiedenergy recovery process defined.

1. Qualified energy recovery process means a systemwith a nameplate capacity of not more than 15 megawatts that converts theotherwise lost energy from:

(a) The heat from exhaust stacks or pipes used forengines or manufacturing or industrial processes; or

(b) The reduction of high pressure in water or gaspipelines before the distribution of the water or gas,

to generateelectricity if the system does not use additional fossil fuel or require acombustion process to generate such electricity.

2. The term does not include any system that usesenergy, lost or otherwise, from a process whose primary purpose is thegeneration of electricity, including, without limitation, any process involvingengine-driven generation or pumped hydrogeneration.

(Added to NRS by 2003, 1874)

NRS 704.7811 Renewableenergy defined.

1. Renewable energy means:

(a) Biomass;

(b) Geothermal energy;

(c) Solar energy;

(d) Waterpower; and

(e) Wind.

2. The term does not include coal, natural gas, oil,propane or any other fossil fuel, or nuclear energy.

3. As used in this section, waterpower means powerderived from standing, running or falling water which is used for any plant,facility, equipment or system to generate electricity if the generatingcapacity of the plant, facility, equipment or system is not more than 30 megawatts.Except as otherwise provided in this subsection, the term includes, withoutlimitation, power derived from water that has been pumped from a lower to ahigher elevation if the generating capacity of the plant, facility, equipmentor system for which the water is used is not more than 30 megawatts. The termdoes not include power:

(a) Derived from water stored in a reservoir by a damor similar device, unless:

(1) The water is used exclusively forirrigation;

(2) The dam or similar device was in existenceon January 1, 2003; and

(3) The generating capacity of the plant,facility, equipment or system for which the water is used is not more than 30megawatts;

(b) That requires a new or increased appropriation ordiversion of water for its creation; or

(c) That requires the use of any fossil fuel for itscreation, unless:

(1) The primary purpose of the use of the fossilfuel is not the creation of the power; and

(2) The generating capacity of the plant,facility, equipment or system for which the water is used is not more than 30megawatts.

(Added to NRS by 2001, 2527; A 2003, 1875)

NRS 704.7815 Renewableenergy system defined. Renewable energysystem means:

1. A facility or energy system that:

(a) Uses renewable energy or energy from a qualifiedenergy recovery process to generate electricity; and

(b) Transmits or distributes the electricity that itgenerates from renewable energy or energy from a qualified energy recoveryprocess via:

(1) A power line which is dedicated to thetransmission or distribution of electricity generated from renewable energy orenergy from a qualified energy recovery process and which is connected to afacility or system owned, operated or controlled by a provider of electricservice; or

(2) A power line which is shared with not morethan one facility or energy system generating electricity from nonrenewableenergy and which is connected to a facility or system owned, operated orcontrolled by a provider of electric service.

2. A solar energy system that reduces the consumptionof electricity or any fossil fuel.

3. A net metering system used by a customer-generatorpursuant to NRS 704.766 to 704.775, inclusive.

(Added to NRS by 2001, 2527; A 2001, 3274; 2003, 1866, 1875; 2005, 1281; 2005, 22nd SpecialSession, 82, 90)

NRS 704.7818 Retailcustomer defined.

1. Retail customer means an end-use customer thatpurchases electricity for consumption in this state.

2. The term includes, without limitation:

(a) This state, a political subdivision of this stateor an agency or instrumentality of this state or political subdivision of thisstate when it is an end-use customer that purchases electricity for consumptionin this state, including, without limitation, when it is an eligible customerthat purchases electricity for consumption in this state from a provider of newelectric resources pursuant to the provisions of chapter704B of NRS.

(b) A residential, commercial or industrial end-usecustomer that purchases electricity for consumption in this state, including,without limitation, an eligible customer that purchases electricity forconsumption in this state from a provider of new electric resources pursuant tothe provisions of chapter 704B of NRS.

(c) A landlord of a mobile home park or owner of acompany town who is subject to any of the provisions of NRS 704.905 to 704.960, inclusive.

(d) A landlord who pays for electricity that isdelivered through a master meter and who distributes or resells the electricityto one or more tenants for consumption in this state.

(Added to NRS by 2001, 2527; A 2001, 3274)

NRS 704.7819 Utilityprovider defined. Utility provider means aprovider of electric service that is a public utility.

(Added to NRS by 2005, 22nd SpecialSession, 80)

NRS 704.7821 Establishmentof portfolio standard; requirements; reimbursement of costs of solar energysystems; portfolio energy credits; renewable energy contracts and energyefficiency contracts; exemptions; regulations.

1. For each provider of electric service, theCommission shall establish a portfolio standard. The portfolio standard mustrequire each provider to generate, acquire or save electricity from portfolioenergy systems or efficiency measures in an amount that is:

(a) For calendar years 2005 and 2006, not less than 6percent of the total amount of electricity sold by the provider to its retailcustomers in this State during that calendar year.

(b) For calendar years 2007 and 2008, not less than 9percent of the total amount of electricity sold by the provider to its retailcustomers in this State during that calendar year.

(c) For calendar years 2009 and 2010, not less than 12percent of the total amount of electricity sold by the provider to its retailcustomers in this State during that calendar year.

(d) For calendar years 2011 and 2012, not less than 15percent of the total amount of electricity sold by the provider to its retailcustomers in this State during that calendar year.

(e) For calendar years 2013 and 2014, not less than 18percent of the total amount of electricity sold by the provider to its retailcustomers in this State during that calendar year.

(f) For calendar year 2015 and for each calendar yearthereafter, not less than 20 percent of the total amount of electricity sold bythe provider to its retail customers in this State during that calendar year.

2. In addition to the requirements set forth insubsection 1, the portfolio standard for each provider must require that:

(a) Of the total amount of electricity that theprovider is required to generate, acquire or save from portfolio energy systemsor efficiency measures during each calendar year, not less than 5 percent ofthat amount must be generated or acquired from solar renewable energy systems.

(b) Of the total amount of electricity that theprovider is required to generate, acquire or save from portfolio energy systemsor efficiency measures during each calendar year, not more than 25 percent ofthat amount may be based on energy efficiency measures. If the provider intendsto use energy efficiency measures to comply with its portfolio standard duringany calendar year, of the total amount of electricity saved from energyefficiency measures for which the provider seeks to obtain portfolio energycredits pursuant to this paragraph, at least 50 percent of that amount must besaved from energy efficiency measures installed at service locations ofresidential customers of the provider, unless a different percentage isapproved by the Commission.

(c) If the provider acquires or saves electricity froma portfolio energy system or efficiency measure pursuant to a renewable energycontract or energy efficiency contract with another party:

(1) The term of the contract must be not lessthan 10 years, unless the other party agrees to a contract with a shorter term;and

(2) The terms and conditions of the contractmust be just and reasonable, as determined by the Commission. If the provideris a utility provider and the Commission approves the terms and conditions ofthe contract between the utility provider and the other party, the contract andits terms and conditions shall be deemed to be a prudent investment and the utilityprovider may recover all just and reasonable costs associated with thecontract.

3. If, for the benefit of one or more of its retailcustomers in this State, the provider has directly reimbursed, in whole or inpart, the costs of the acquisition or installation of a solar energy systemwhich qualifies as a renewable energy system and which reduces the consumptionof electricity, the total reduction in the consumption of electricity duringeach calendar year that results from the solar energy system shall be deemed tobe electricity that the provider generated or acquired from a renewable energysystem for the purposes of complying with its portfolio standard.

4. The Commission shall adopt regulations thatestablish a system of portfolio energy credits that may be used by a providerto comply with its portfolio standard.

5. Except as otherwise provided in subsection 6, eachprovider shall comply with its portfolio standard during each calendar year.

6. If, for any calendar year, a provider is unable tocomply with its portfolio standard through the generation of electricity fromits own renewable energy systems or, if applicable, through the use ofportfolio energy credits, the provider shall take actions to acquire or saveelectricity pursuant to one or more renewable energy contracts or energyefficiency contracts. If the Commission determines that, for a calendar year,there is not or will not be a sufficient supply of electricity or a sufficientamount of energy savings made available to the provider pursuant to renewable energycontracts and energy efficiency contracts with just and reasonable terms andconditions, the Commission shall exempt the provider, for that calendar year,from the remaining requirements of its portfolio standard or from anyappropriate portion thereof, as determined by the Commission.

7. The Commission shall adopt regulations thatestablish:

(a) Standards for the determination of just andreasonable terms and conditions for the renewable energy contracts and energy efficiencycontracts that a provider must enter into to comply with its portfoliostandard.

(b) Methods to classify the financial impact of eachlong-term renewable energy contract and energy efficiency contract as anadditional imputed debt of a utility provider. The regulations must allow theutility provider to propose an amount to be added to the cost of the contract,at the time the contract is approved by the Commission, equal to a compensatingcomponent in the capital structure of the utility provider. In evaluating anyproposal made by a utility provider pursuant to this paragraph, the Commissionshall consider the effect that the proposal will have on the rates paid by theretail customers of the utility provider.

8. As used in this section:

(a) Energy efficiency contract means a contract toattain energy savings from one or more energy efficiency measures owned,operated or controlled by other parties.

(b) Renewable energy contract means a contract toacquire electricity from one or more renewable energy systems owned, operatedor controlled by other parties.

(c) Terms and conditions includes, withoutlimitation, the price that a provider must pay to acquire electricity pursuantto a renewable energy contract or to attain energy savings pursuant to anenergy efficiency contract.

(Added to NRS by 2001, 2528; A 2003, 1866, 1876; 2005, 22nd SpecialSession, 82)

NRS 704.78215 Calculationof portfolio energy credits.

1. Except as otherwise provided in this section or byspecific statute, a provider is entitled to one portfolio energy credit foreach kilowatt-hour of electricity that the provider generates, acquires orsaves from a portfolio energy system or efficiency measure.

2. The Commission may adopt regulations that give aprovider more than one portfolio energy credit for each kilowatt-hour ofelectricity saved by the provider during its peak load period from energyefficiency measures.

(Added to NRS by 2005, 22nd SpecialSession, 80)

NRS 704.7822 Calculationof electricity generated or acquired from certain solar photovoltaic systems. For the purpose of complying with a portfolio standardestablished pursuant to NRS 704.7821, aprovider shall be deemed to have generated or acquired 2.4 kilowatt-hours ofelectricity from a renewable energy system for each 1.0 kilowatt-hour of actualelectricity generated or acquired from a solar photovoltaic system, if:

1. The system is installed on the premises of a retailcustomer; and

2. On an annual basis, at least 50 percent of theelectricity generated by the system is utilized by the retail customer on thatpremises.

(Added to NRS by 2003, 805)

NRS 704.7823 Systemthat draws or creates electricity from tires deemed not to be renewable energysystem; exception; calculation of electricity generated or acquired fromcertain systems that utilize reverse polymerization process.

1. Except as otherwise provided in subsection 2, anyelectricity generated by a provider using any system that involves drawing orcreating electricity from tires must be deemed to have not come from arenewable energy system for the purpose of complying with a portfolio standardestablished pursuant to NRS 704.7821.

2. For the purpose of complying with a portfoliostandard established pursuant to NRS704.7821, a provider shall be deemed to have generated or acquired 0.7kilowatt-hours of electricity from a renewable energy system for each 1.0kilowatt-hour of actual electricity generated or acquired from a system thatutilizes a reverse polymerization process, if:

(a) The system is installed on the premises of a retailcustomer; and

(b) On an annual basis, at least 50 percent of theelectricity generated by the system is utilized by the retail customer on thatpremises.

3. As used in this section:

(a) Reverse polymerization process means a processthat generates electricity from a tire that:

(1) Uses microwave reduction; and

(2) Does not involve combustion of the tire.

(b) Tire includes any tire for any vehicle or devicein, upon or by which any person or property is or may be transported or drawnupon land.

(Added to NRS by 2003, 805)

NRS 704.7825 Reports.

1. Each provider of electric service shall submit tothe Commission an annual report that provides information relating to the actionstaken by the provider to comply with its portfolio standard.

2. Each provider shall submit the annual report to theCommission after the end of each calendar year and within the time prescribedby the Commission. The report must be submitted in a format approved by theCommission.

3. The Commission may adopt regulations that requireproviders to submit to the Commission additional reports during each calendaryear.

4. Each annual report and each additional report mustinclude clear and concise information that sets forth:

(a) The amount of electricity which the providergenerated, acquired or saved from portfolio energy systems or efficiencymeasures during the reporting period and, if applicable, the amount ofportfolio energy credits that the provider acquired, sold or traded during thereporting period to comply with its portfolio standard;

(b) The capacity of each renewable energy system owned,operated or controlled by the provider, the total amount of electricitygenerated by each such system during the reporting period and the percentage ofthat total amount which was generated directly from renewable energy;

(c) Whether, during the reporting period, the providerbegan construction on, acquired or placed into operation any renewable energysystem and, if so, the date of any such event;

(d) Whether, during the reporting period, the providerparticipated in the acquisition or installation of any energy efficiencymeasures and, if so, the date of any such event; and

(e) Any other information that the Commission byregulation may deem relevant.

5. Based on the reports submitted by providerspursuant to this section, the Commission shall compile information that setsforth whether any provider has used energy efficiency measures to comply withits portfolio standard and, if so, the type of energy efficiency measures usedand the amount of energy savings attributable to each such energy efficiencymeasure. The Commission shall report such information to:

(a) The Legislature, not later than the first day ofeach regular session; and

(b) The Legislative Commission, if requested by theChairman of the Commission.

(Added to NRS by 2001, 2529; A 2005, 22nd SpecialSession, 85)

NRS 704.7827 Temporaryrenewable energy development program.

1. The Commission may adopt regulations to establish atemporary renewable energy development program that is designed to assist withthe completion of new renewable energy projects.

2. The Commission may require a utility provider toparticipate in a temporary renewable energy development program.

3. If the Commission adopts regulations establishing atemporary renewable energy development program, the program may include,without limitation:

(a) The establishment of a private trust administeredby an independent trustee; and

(b) The payment of money from the private trust tocarry out the terms and conditions of renewable energy contracts approved bythe Commission between a utility provider and one or more new renewable energyprojects.

4. If a utility provider is participating in atemporary renewable energy development program, the utility provider may applyto the Commission for authority to close the program to new renewable energyprojects if the utility provider has achieved an investment grade credit ratingas determined by either Moodys Investors Service, Inc., or Standard and PoorsRating Services and has maintained that credit rating for 24 consecutivemonths.

5. The Commission may grant an application to close atemporary renewable energy development program only after finding that thecreditworthiness of the utility provider is sufficiently restored so thatclosure of the program to new renewable energy projects is in the publicinterest.

6. An order issued by the Commission closing atemporary renewable energy development program to new renewable energy projectsis not effective as to any new renewable energy project which has previouslybeen accepted into the program and which is receiving money from a privatetrust established under the program until the earlier of:

(a) The expiration or termination of the original renewableenergy contract approved by the Commission between the utility provider and thenew renewable energy project; or

(b) The original financing, including debt, equity, orboth debt and equity, as applicable, entered into by the new renewable energy projectupon completion of construction of the project has been fully satisfiedpursuant to its original terms.

7. As used in this section, new renewable energyproject means a project to construct a renewable energy system if:

(a) The project is associated with one or morerenewable energy contracts approved by the Commission pursuant to NRS 704.7821; and

(b) Construction on the project commenced on or afterJuly 1, 2001.

(Added to NRS by 2005, 22nd SpecialSession, 81)

NRS 704.7828 Regulations;enforcement; administrative fines.

1. The Commission shall adopt regulations to carry outand enforce the provisions of NRS 704.7801to 704.7828, inclusive. The regulationsadopted by the Commission may include any enforcement mechanisms which arenecessary and reasonable to ensure that each provider of electric servicecomplies with its portfolio standard. Such enforcement mechanisms may include,without limitation, the imposition of administrative fines.

2. If a provider does not comply with its portfoliostandard for any calendar year and the Commission has not exempted the providerfrom the requirements of its portfolio standard pursuant to NRS 704.7821, the Commission may impose anadministrative fine against the provider or take other administrative actionagainst the provider, or do both.

3. The Commission may impose an administrative fineagainst a provider based upon:

(a) Each kilowatt-hour of electricity that the providerdoes not generate, acquire or save from portfolio energy systems or efficiencymeasures during a calendar year in violation of its portfolio standard; or

(b) Any other reasonable formula adopted by theCommission.

4. In the aggregate, the administrative fines imposedagainst a provider for all violations of its portfolio standard for a singlecalendar year must not exceed the amount which is necessary and reasonable toensure that the provider complies with its portfolio standard, as determined bythe Commission.

5. If the Commission imposes an administrative fineagainst a utility provider:

(a) The administrative fine is not a cost of service ofthe utility provider;

(b) The utility provider shall not include any portionof the administrative fine in any application for a rate adjustment or rateincrease; and

(c) The Commission shall not allow the utility providerto recover any portion of the administrative fine from its retail customers.

6. All administrative fines imposed and collectedpursuant to this section must be deposited in the State General Fund.

(Added to NRS by 2001, 2530; A 2005, 22nd SpecialSession, 85)

Colorado River Commission of Nevada

NRS 704.787 Authorityto sell electricity and provide transmission service and distribution serviceto certain customers without being subject to jurisdiction of Public UtilitiesCommission of Nevada; tariff for distribution service; duties of certainelectric utility.

1. The Colorado River Commission of Nevada may sellelectricity and provide transmission service or distribution service, or both,only to meet the existing and future requirements of:

(a) Any customer that the Colorado River Commission ofNevada on July 16, 1997, was serving or had a contract to serve; and

(b) The Southern Nevada Water Authority and its memberagencies for their water and wastewater operations,

withoutbeing subject to the jurisdiction of the Public Utilities Commission of Nevada.

2. The Public Utilities Commission of Nevada shallestablish a just and reasonable tariff for such electric distribution serviceto be provided by an electric utility that primarily serves densely populatedcounties to the Colorado River Commission of Nevada for its sale of electricityor electric distribution services, or both, to any customer that the ColoradoRiver Commission of Nevada on July 16, 1997, was serving or had a contract toserve, and to the Southern Nevada Water Authority and its member agencies tomeet the existing and future requirements for their water and wastewateroperations.

3. An electric utility that primarily serves denselypopulated counties shall provide electric distribution service pursuant to thetariff required by subsection 2.

4. As used in this section:

(a) Electric utility that primarily serves denselypopulated counties means an electric utility that, with regard to theprovision of electric service, derives more of its annual gross operatingrevenue in this State from customers located in counties whose population is400,000 or more than it does from customers located in counties whosepopulation is less than 400,000.

(b) Southern Nevada Water Authority has the meaningascribed to it in NRS 538.041.

(Added to NRS by 2001, 1266)

UNLAWFUL ACTS AGAINST PUBLIC UTILITIES

NRS 704.800 Unlawfulacts involving theft or damage to property: Criminal penalties.

1. It is unlawful for a person to obtain any water,gas, electricity, power or other service, goods or product provided by a publicutility with the intent to avoid payment therefor, by:

(a) Opening, breaking into, tapping or connecting withany pipe, flume, ditch, conduit, reservoir, wire, meter or other apparatusbelonging to or used by any other person or by the State, any county, city,district or municipality, and taking and removing therefrom or allowing to flowor be taken therefrom any water, gas, electricity or power belonging toanother;

(b) Connecting a pipe, tube, flume, conduit, wire orother instrument or appliance with any pipe, conduit, tube, flume, wire, line,pole, lamp, meter or other apparatus belonging to or used by any water,irrigation, gas, electric or power company or corporation, or belonging to orused by any other person in such a manner as to take therefrom water, gas,electricity or power for any purpose or use without passing through the meteror instrument or other means provided for registering the quantity consumed orsupplied;

(c) Altering, disconnecting, removing, injuring orpreventing the action of any headgate, meter or other instrument used tomeasure or register the quantity of water, gas, electricity or power used orsupplied; or

(d) Injuring or interfering with the efficiency of anymeter, pipe, conduit, flume, wire, pole, line, lamp, fixture, hydrant or otherattachment or apparatus belonging to or used by any water, irrigation, gas,electric or power company or corporation.

2. If the value of the service involved or theproperty damaged or stolen is:

(a) Five hundred dollars or more, a person who violatesthe provisions of this section is guilty of a category D felony and shall bepunished as provided in NRS 193.130. Inaddition to any other penalty, the court shall order the person to pay restitution.

(b) Less than $500, a person who violates theprovisions of this section is guilty of a misdemeanor.

Indetermining the value of the service involved, the value of all services unlawfullyobtained or attempted to be obtained within 3 years before the time the indictmentis found or the information is filed may be aggregated.

3. This section applies when the service involvedeither originates or terminates, or both originates and terminates, in thisstate, or when the charges for the service would have been billable in thenormal course by a person providing the service in this state but for the factthat the service was obtained or attempted to be obtained by one or more of themeans set forth in subsection 1.

[1911 C&P 467; RL 6732; NCL 10416] + [1911C&P 468; RL 6733; NCL 10417](NRS A 1967, 656; 1979, 1493; 1985,1038; 1987, 1316; 1995, 1320)

NRS 704.805 Unlawfulacts involving theft or damage to property: Civil remedies.

1. Any public utility may bring a civil action fordamages against any person who willfully and knowingly obtains, attempts toobtain or solicits, aids or abets another to obtain any service provided by thepublic utility by:

(a) Opening, breaking into, tapping or connecting withany pipe, flume, ditch, conduit, reservoir, wire, meter or other apparatusowned or used by another person;

(b) Bypassing any meter or other instrument used toregister the quantity consumed or supplied; or

(c) Altering, disconnecting, removing, injuring orpreventing the action of any meter or other instrument used to register thequantity consumed or supplied,

and recovera sum equal to treble the amount of the actual damages, plus all reasonablecosts and expenses incurred by the public utility because of that conduct,including the cost of equipment, investigating the matter and expert witnessesand attorneys fees.

2. There is a rebuttable presumption that the personresponsible for payment for the delivery of the service of a public utility toany premises caused or had knowledge of any act specified in subsection 1 ifhe:

(a) Is the occupant of the premises; or

(b) Has any access to the system for delivery of theservice to the premises.

3. The presumption provided in subsection 2 onlyshifts the burden of going forward with the evidence and does not shift theburden of proof to the defendant.

4. A person who willfully or negligently injures ordestroys the property of a public utility which is used in the actual production,distribution or delivery of the service provided by the public utility isliable to the public utility for the cost of the repair or replacement of theproperty injured or destroyed, including the direct and indirect costsattributable to the repair or replacement but subtracting the value, if any, ofsalvage.

5. Nothing in this section abridges or alters anyother right of action or remedy available to a public utility before or afterJuly 1, 1985.

6. As used in this section, direct and indirect costsattributable to repair or replacement include, but are not limited to, costsfor:

(a) Labor;

(b) Materials;

(c) Supervision of employees;

(d) Supplies;

(e) Tools;

(f) Taxes;

(g) Transportation;

(h) General and administrative expenses;

(i) Allocable benefits for employees;

(j) Allowances for meals; and

(k) Any other related expenses.

(Added to NRS by 1985, 1037; A 1987, 518)

CONSTRUCTION OF UTILITY FACILITIES: UTILITY ENVIRONMENTALPROTECTION ACT

NRS 704.820 Shorttitle. NRS704.820 to 704.900, inclusive, shallbe known and may be cited as the Utility Environmental Protection Act.

(Added to NRS by 1971, 554)

NRS 704.825 Declarationof legislative findings and purpose.

1. The Legislature hereby finds and declares that:

(a) There is at present and will continue to be agrowing need for electric, gas and water services which will require theconstruction of new facilities. It is recognized that such facilities cannot bebuilt without in some way affecting the physical environment where suchfacilities are located.

(b) It is essential in the public interest to minimizeany adverse effect upon the environment and upon the quality of life of thepeople of the State which such new facilities might cause.

(c) Present laws and practices relating to the locationof such utility facilities should be strengthened to protect environmentalvalues and to take into account the total cost to society of such facilities.

(d) Existing provisions of law may not provide adequateopportunity for natural persons, groups interested in conservation and theprotection of the environment, state and regional agencies, local governmentsand other public bodies to participate in proceedings regarding the locationand construction of major facilities.

2. The Legislature, therefore, hereby declares that itis the purpose of NRS 704.820 to 704.900, inclusive, to provide a forum forthe expeditious resolution of all matters concerning the location andconstruction of electric, gas and water transmission lines and associatedfacilities.

(Added to NRS by 1971, 554; A 1985, 2051; 1997, 489,1914)

NRS 704.830 Definitions. As used in NRS 704.820to 704.900, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 704.834 to 704.860, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1971, 554; A 1973, 1263; 1985, 2298;2001, 2986)

NRS 704.834 Appropriatefederal agency defined. Appropriate federalagency means a federal agency responsible for the enforcement of environmentallaws whose approval is required for the construction of a utility facility.

(Added to NRS by 2001, 2984)

NRS 704.840 Commenceto construct defined. Commence to constructmeans any clearing of land, excavation or other action which would adverselyaffect the natural environment of the site or route of a utility facility, butdoes not include changes needed for temporary use of sites or routes fornonutility purposes, or uses in securing geological data, including necessaryborings to ascertain foundation conditions.

(Added to NRS by 1971, 555)

NRS 704.842 Environmentalreview defined. Environmental reviewincludes, without limitation, an environmental assessment and environmentalimpact statement.

(Added to NRS by 2001, 2984)

NRS 704.845 Localgovernment defined. Local government meansany county, municipality, district, agency or other unit of local government inNevada.

(Added to NRS by 1971, 555; A 1991, 376)

NRS 704.848 Otherpermitting entity defined.

1. Other permitting entity means any state or localentity:

(a) That is responsible for the enforcement ofenvironmental laws and whose approval is required for the construction of autility facility, including, without limitation, the State EnvironmentalCommission, the State Department of Conservation and Natural Resources and alocal air pollution control board; or

(b) Whose approval is required for granting anyvariance, special use permit, conditional use permit or other special exceptionunder NRS 278.010 to 278.319, inclusive, or 278.640 to 278.675, inclusive, or any regulation orordinance adopted pursuant thereto, that is required for the construction of autility facility.

2. The term does not include the Commission or theState Engineer.

(Added to NRS by 2001, 2984)

NRS 704.850 Persondefined. Person includes a natural person,corporation, partnership, public utility, government, governmental agency,political subdivision of a government and any other entity that seeks toconstruct a utility facility.

(Added to NRS by 1971, 555; A 1985, 539; 1997, 1914)

NRS 704.855 Publicutility and utility defined.

1. Public utility or utility includes those publicutilities defined in NRS 704.020 and notexcluded by NRS 704.030 and any oilpipeline carrier described and regulated under chapter708 of NRS.

2. Public utility does not include plants orequipment used to generate electrical energy that is wholly consumed on thepremises of and by the producer thereof.

(Added to NRS by 1971, 555; A 1973, 1035; 1983, 2003;1985, 2051, 2298; 1987, 288; 1997, 1914)

NRS 704.860 Utilityfacility defined. Utility facility means:

1. Electric generating plants and their associatedfacilities, except:

(a) Electric generating plants and their associatedfacilities that are or will be located entirely within the boundaries of acounty whose population is 100,000 or more; or

(b) Electric generating plants and their associatedfacilities which use or will use renewable energy, as defined in NRS 704.7811, as their primary source ofenergy to generate electricity and which have or will have a generatingcapacity of not more than 150 kilowatts, including, without limitation, a netmetering system, as defined in NRS 704.771.

As used inthis subsection, associated facilities includes, without limitation, anyfacilities for the storage, transmission or treatment of water, including,without limitation, facilities to supply water or for the treatment or disposalof wastewater, which support or service an electric generating plant.

2. Electric transmission lines and transmission substationsthat:

(a) Are designed to operate at 200 kilovolts or more;

(b) Are not required by local ordinance to be placedunderground; and

(c) Are constructed outside any incorporated city.

3. Gas transmission lines, storage plants, compressorstations and their associated facilities when constructed outside:

(a) Any incorporated city; and

(b) Any county whose population is 100,000 or more.

4. Water storage, transmission and treatmentfacilities, other than facilities for the storage, transmission or treatment ofwater from mining operations.

5. Sewer transmission and treatment facilities.

(Added to NRS by 1971, 555; A 1979, 671; 1985, 2051;1991, 376; 1997, 489, 1915; 2001, 2986; 2005, 1818)

NRS 704.863 Applicability.

1. Notwithstanding any specific statute, regulation orordinance to the contrary, the process for the issuance by the Commission orany other permitting entity of a permit, license or other approval for theconstruction of a utility facility which is subject to the provisions of NRS 704.820 to 704.900, inclusive, must be conducted inaccordance with those provisions.

2. No provision of NRS704.820 to 704.900, inclusive,exempts or is intended to exempt the construction of a utility facility fromany requirements that are or may be imposed on the construction of the utilityfacility by the Federal Government.

(Added to NRS by 2001, 2985)

NRS 704.865 Permitrequired to construct utility facility; transfer of permit; exemptions; waiverof exemption.

1. A person, other than a local government, shall notcommence to construct a utility facility in the State without first havingobtained a permit therefor from the Commission. The replacement of an existingfacility with a like facility, as determined by the Commission, does not constituteconstruction of a utility facility. Any facility, with respect to which apermit is required, must thereafter be constructed, operated and maintained inconformity with the permit and any terms, conditions and modificationscontained therein. A permit may only be issued pursuant to NRS 704.820 to 704.900, inclusive. Any authorizationrelating to a utility facility granted under other laws administered by theCommission constitutes a permit under those sections if the requirements ofthose sections have been complied with in the proceedings leading to thegranting of the authorization.

2. A permit may be transferred, subject to theapproval of the Commission, to a person who agrees to comply with the terms,conditions and modifications contained therein.

3. NRS 704.820to 704.900, inclusive, do not apply toany utility facility:

(a) For which, before July 1, 1971, an application forthe approval of the facility has been made to any federal, state, regional orlocal governmental agency which possesses the jurisdiction to consider thematters prescribed for finding and determination in NRS 704.890;

(b) For which, before July 1, 1971, a governmentalagency has approved the construction of the facility and the person hasincurred indebtedness to finance all or part of the cost of the construction;or

(c) Over which an agency of the Federal Government hasexclusive jurisdiction.

4. Any person intending to construct a utility facilityexcluded from NRS 704.820 to 704.900, inclusive, pursuant to paragraph(a) or (b) of subsection 3 may elect to waive the exclusion by deliveringnotice of its waiver to the Commission. NRS704.820 to 704.900, inclusive,thereafter apply to each utility facility identified in the notice from thedate of its receipt by the Commission.

(Added to NRS by 1971, 555; A 1985, 2299; 1991, 376)

NRS 704.870 Requirementsfor filing application: Form and contents; procedure when federal agency isrequired to conduct environmental analysis; time for filing amendedapplication; service; public notice.

1. Except as otherwise provided in subsection 2, aperson who wishes to obtain a permit for a utility facility must file with theCommission an application, in such form as the Commission prescribes,containing:

(a) A description of the location and of the utilityfacility to be built thereon;

(b) A summary of any studies which have been made ofthe environmental impact of the facility; and

(c) A description of any reasonable alternate locationor locations for the proposed facility, a description of the comparative meritsor detriments of each location submitted, and a statement of the reasons whythe primary proposed location is best suited for the facility.

A copy orcopies of the studies referred to in paragraph (b) must be filed with theCommission and be available for public inspection.

2. If a person wishes to obtain a permit for a utilityfacility and a federal agency is required to conduct an environmental analysisof the proposed utility facility, the person must:

(a) Not later than the date on which the person fileswith the appropriate federal agency an application for approval for theconstruction of the utility facility, file with the Commission and each otherpermitting entity an application, in such a form as the Commission or otherpermitting entity prescribes, containing:

(1) A general description of the proposedutility facility; and

(2) A summary of any studies which the applicantanticipates will be made of the environmental impact of the facility; and

(b) Not later than 30 days after the issuance by theappropriate federal agency of a final environmental assessment or environmentalimpact statement relating to the construction of the utility facility:

(1) File with the Commission an amendedapplication that complies with the provisions of subsection 1; and

(2) File with each other permitting entity anamended application for a permit, license or other approval for the constructionof the utility facility.

3. A copy of each application and amended applicationfiled with the Commission must be filed with the Administrator of the Divisionof Environmental Protection of the State Department of Conservation and NaturalResources.

4. Each application and amended application filed withthe Commission must be accompanied by:

(a) Proof of service of a copy of the application oramended application on the clerk of each local government in the area in whichany portion of the facility is to be located, both as primarily and asalternatively proposed; and

(b) Proof that public notice thereof was given topersons residing in the municipalities entitled to receive notice pursuant toparagraph (a) by the publication of a summary of the application or amendedapplication in newspapers published and distributed in the area in which theutility facility is proposed to be located.

5. Not later than 5 business days after the Commissionreceives an application or amended application pursuant to this section, theCommission shall issue a notice concerning the application or amendedapplication. Any person who wishes to become a party to a permit proceedingpursuant to NRS 704.885 must file withthe Commission the appropriate document required by NRS 704.885 within the time frame set forthin the notice issued by the Commission pursuant to this subsection.

(Added to NRS by 1971, 556; A 1973, 1263; 1981, 662;1985, 2299; 1997, 5, 1915; 2001, 2987; 2003, 1258)

NRS 704.873 Commissionhas exclusive jurisdiction to determine need for utility facilities of certainpublic utilities; other permitting entities precluded from considering need. If a public utility that is subject to the provisions of NRS 704.736 to 704.751, inclusive, applies to theCommission for a permit for the construction of a utility facility:

1. The Commission has exclusive jurisdiction withregard to the determination of whether a need exists for the utility facility;and

2. No other permitting entity may consider, in itsreview of any application for a permit, license or other approval for theconstruction of the utility facility, whether a need exists for the utilityfacility.

(Added to NRS by 2001, 2985)

NRS 704.875 Reviewof application by Division of Environmental Protection of State Department ofConservation and Natural Resources. TheDivision of Environmental Protection of the State Department of Conservationand Natural Resources shall review each application filed and may participatein any proceeding held pursuant to NRS704.880.

(Added to NRS by 1971, 556; A 1973, 1264; 1997, 6)

NRS 704.877 Dutyto accept and incorporate findings and conclusions of environmental review thatalready has been conducted; duplicative review prohibited; exception; duty tocooperate and coordinate to avoid duplication of activities.

1. Except as otherwise provided in this subsection, ifan environmental review relating to the construction of a utility facility inits entirety, or to the construction of any portion of a utility facility, hasalready been conducted by an appropriate federal agency or by a state, regionalor local agency, the Commission and each other permitting entity:

(a) Shall accept and incorporate the findings andconclusions made in that review into any application for a permit, license orother approval for the construction of the utility facility which is filed withthe Commission or other permitting entity; and

(b) Shall not conduct any duplicative environmentalreview on the application.

TheCommission or other permitting entity need not comply with the provisions ofthis subsection if the Commission or other permitting entity has alreadycompleted its own environmental review.

2. The Commission and other permitting entities shallcooperate with each other and the appropriate federal agencies on applicationsfor permits, licenses and other approvals to construct a utility facility andcoordinate their activities, including, without limitation, conducting hearingsor environmental reviews, to avoid duplication of activities.

(Added to NRS by 2001, 2985)

NRS 704.880 Powerof Commission to dispense with hearing for certain applications; practice andprocedure at hearings. The Commission, in itsdiscretion, may dispense with the hearing on the application if, upon theexpiration of the time fixed in the notice thereof, no protest against thegranting of the permit has been filed by or in behalf of any interested party.The conduct of the hearing shall be the same as set forth in the applicableRules of Practice and Procedure before the Commission.

(Added to NRS by 1971, 556)

NRS 704.885 Partiesto proceeding for permit; limited appearance; intervention.

1. The parties to a permit proceeding include:

(a) The applicant.

(b) The Division of Environmental Protection of theState Department of Conservation and Natural Resources.

(c) Each local government entitled to receive serviceof a copy of the application pursuant to subsection 4 of NRS 704.870, if it has filed with theCommission a notice of intervention as a party, within the time frame establishedby the Commission pursuant to subsection 5 of NRS704.870.

(d) Any natural person residing in a local governmententitled to receive service of a copy of the application pursuant to subsection4 of NRS 704.870, if such a person haspetitioned the Commission for leave to intervene as a party within the timeframe established by the Commission pursuant to subsection 5 of NRS 704.870 and if the petition has beengranted by the Commission for good cause shown.

(e) Any domestic nonprofit corporation or association,formed in whole or in part to promote conservation of natural beauty, toprotect the environment, personal health or other biological values, topreserve historical sites, to promote consumer interests, to representcommercial and industrial groups, or to promote the orderly development of theareas in which the facility is to be located, if it has filed with theCommission a notice of intent to be a party within the time frame establishedby the Commission pursuant to subsection 5 of NRS704.870.

2. Any person may make a limited appearance in theproceeding by filing a statement of position within the time frame establishedby the Commission pursuant to subsection 5 of NRS704.870. A statement filed by a person making a limited appearance becomespart of the record. No person making a limited appearance has the right topresent oral testimony or cross-examine witnesses.

3. The Commission may, for good cause shown, grant a petitionfor leave to intervene as a party to participate in subsequent phases of theproceeding, filed by a municipality, government agency, person or organizationwho is identified in paragraph (c), (d) or (e) of subsection 1, but who failedto file in a timely manner a notice of intervention, a petition for leave tointervene or a notice of intent to be a party, as the case may be.

(Added to NRS by 1971, 556; A 1973, 910, 1265, 1837;1977, 215; 1985, 2300; 1997, 6, 1916; 2001, 2987; 2003, 1259)

NRS 704.890 Grantor denial of application: Required findings; conditions and modifications.

1. Except as otherwise provided in subsection 3, theCommission may not grant a permit for the construction, operation andmaintenance of a utility facility, either as proposed or as modified by theCommission, to a person unless it finds and determines:

(a) The nature of the probable effect on theenvironment;

(b) The extent to which the facility is needed toensure reliable utility service to customers in this State;

(c) That the need for the facility balances any adverseeffect on the environment;

(d) That the facility represents the minimum adverseeffect on the environment, considering the state of available technology andthe nature and economics of the various alternatives;

(e) That the location of the facility as proposedconforms to applicable state and local laws and regulations issued thereunderand the applicant has obtained, or is in the process of obtaining, all otherpermits, licenses and approvals required by federal, state and local statutes,regulations and ordinances; and

(f) That the facility will serve the public interest.

2. If the Commission determines that the location ofall or a part of the proposed facility should be modified, it may condition itspermit upon such a modification. If the applicant has not obtained all theother permits, licenses and approvals required by federal, state and localstatutes, regulations and ordinances as of the date on which the Commissiondecides to issue a permit, the Commission shall condition its permit upon theapplicant obtaining those permits and approvals.

3. The requirements set forth in paragraph (f) ofsubsection 1 do not apply to any application for a permit which is filed by astate government or political subdivision thereof.

(Added to NRS by 1971, 557; A 1983, 887; 1985, 2301;1997, 1916; 2001,2988)

NRS 704.8905 Grantor denial of application: Time within which Commission and other permittingentities must act; determination upon record; terms, conditions andmodifications; service of Commission order.

1. Except as otherwise required to comply with federallaw:

(a) Not later than 150 days after a person has filed anapplication regarding a utility facility pursuant to subsection 1 of NRS 704.870:

(1) The Commission shall grant or deny approvalof that application; and

(2) Each other permitting entity shall, if anapplication for a permit, license or other approval for the construction of theutility facility was filed with the other permitting entity on or before thedate on which the applicant filed the application pursuant to subsection 1 of NRS 704.870, grant or deny the applicationfiled with the other permitting entity.

(b) Not later than 120 days after a person has filed anamended application regarding a utility facility pursuant to subsection 2 of NRS 704.870:

(1) The Commission shall grant or deny approvalof the amended application; and

(2) Each other permitting entity shall, if anapplication for a permit, license or other approval for the construction of theutility facility was filed with the other permitting entity on or before thedate on which the applicant filed with the appropriate federal agency anapplication for approval for the construction of the utility facility, grant ordeny the amended application filed with the other permitting entity.

2. The Commission or other permitting entity shallmake its determination upon the record and may grant or deny the application asfiled, or grant the application upon such terms, conditions or modifications ofthe construction, operation or maintenance of the utility facility as theCommission or other permitting entity deems appropriate.

3. The Commission shall serve a copy of its order andany opinion issued with it upon each party to the proceeding before theCommission.

(Added to NRS by 2001, 2985)

NRS 704.891 Reportsto be filed with Commission by person holding permit who is not public utility.

1. Any person other than a public utility who receivesa permit issued by the Commission pursuant to NRS704.820 to 704.900, inclusive,shall, as provided in subsection 2, file with the Commission reports whichcontain:

(a) The location, nature and capacity of that facility;

(b) The anticipated date for commercial operation ofthat facility;

(c) Information regarding whether any public utility inthis state has contracted for the purchase of the capacity or other services ofthat facility; and

(d) Information regarding whether any capacity or otherservices of that facility is available for purchase by public utilities in thisstate.

2. The reports required by subsection 1 must be filed:

(a) On or before the date on which construction of autility facility is commenced; and

(b) On a date not later than:

(1) Twelve months before the scheduled date ofcommercial operation of that facility; or

(2) Thirty days before the actual date ofcommercial operation of that facility,

whichever isearlier.

(Added to NRS by 1985, 2297; A 1997, 1917; 2001, 2989)

NRS 704.893 Limitationson purchase of capacity of utility facility by certain public utilities. No public utility which has a parent or an affiliatedcorporation or a subsidiary of that parent or affiliated corporation with aninterest in the ownership of a utility facility, may purchase or contract forthe capacity of that facility unless the purchase or the contract has beenreviewed and approved by the Commission in a manner consistent with theprovisions of NRS 704.736 to 704.751, inclusive.

(Added to NRS by 1985, 2297)

NRS 704.895 Rehearing;judicial review.

1. Any party aggrieved by any order issued by theCommission on an application for a permit may apply for a rehearing within 15days after issuance of the order. Any party aggrieved by the final order of theCommission on rehearing may obtain judicial review thereof by filing acomplaint in a district court within 30 days after the issuance of such finalorder. Upon receipt of such complaint, the Commission shall forthwith deliverto the court a copy of the written transcript of the record of the proceedingbefore it and a copy of its decision and opinion entered therein, whichconstitutes the record on judicial review.

2. The grounds for and the scope for review of thecourt are limited to whether the opinion and order of the Commission are:

(a) In conformity with the Constitution and the laws ofthe State of Nevada and of the United States;

(b) Supported by substantial evidence in the record;

(c) Made in accordance with the procedures set forth inNRS 704.820 to 704.900, inclusive, or established order,rule or regulation of the Commission; and

(d) Arbitrary, capricious or an abuse of discretion.

(Added to NRS by 1971, 558; A 2001, 2989)

NRS 704.897 Effectof provisions on jurisdiction of Commission over public utilities servingretail customers in State. Nothing in theprovisions of NRS 704.820 to 704.900, inclusive, may be construed aslimiting the jurisdiction of the Commission over public utilities which serveretail customers in this state.

(Added to NRS by 1985, 2297)

NRS 704.900 Cooperationwith other states and Federal Government. TheCommission, in the discharge of its duties under NRS 704.820 to 704.900, inclusive, or any other law,shall, to the extent practicable, make joint investigations, hold jointhearings within or without the State, and issue joint or concurrent orders inconjunction or concurrence with any official or agency of any state or of theUnited States, whether in the holding of such investigations or hearings, or inthe making of such orders, the Commission functions under agreements or compactsbetween states or under the concurrent power of states to regulate interstatecommerce, or as an agency of the United States, or otherwise. The Commissionmay, in the discharge of its duties under NRS704.820 to 704.900, inclusive,negotiate and enter into agreements or compacts with agencies of other states,pursuant to any consent of the Congress, for cooperative efforts in permittingthe construction, operation and maintenance of utility facilities in accordwith the purposes of NRS 704.820 to 704.900, inclusive, and for the enforcementof the respective state laws regarding them.

(Added to NRS by 1971, 558; A 2001, 2990)

UTILITY SERVICE PROVIDED TO MOBILE HOME PARKS AND COMPANYTOWNS

NRS 704.905 Definitions. As used in NRS 704.905to 704.960, inclusive:

1. Alternative seller has the meaning ascribed to itin NRS 704.994.

2. Company town means a community whose primarypurpose is to provide housing to employees of a person who owns not less than70 percent of the dwellings, and may include commercial or other supportingestablishments.

3. Dwelling includes a commercial or othersupporting establishment.

4. Utility includes a public utility and all city,county or other governmental entities which provide electric, gas or waterservice to a mobile home park or a company town.

(Added to NRS by 1989, 1867; A 1991, 1984; 2001, 1767)

NRS 704.910 Applicabilityof provisions to mobile home parks; utility or alternative seller prohibitedfrom selling to landlord at higher rate.

1. The provisions of NRS704.910 to 704.960, inclusive, applyto mobile home parks governed by the provisions of chapters 118B and 461Aof NRS, utilities and alternative sellers which provide utility service tothose parks and landlords who operate those parks.

2. A utility or an alternative seller which providesgas, water or electricity to any landlord exclusively for distribution orresale to tenants residing in mobile homes or for the landlords residentialuse shall not charge the landlord for those services at a rate higher than thecurrent rates offered by the utility or alternative seller, as appropriate, toits residential customers.

(Added to NRS by 1981, 1239; A 1983, 2030; 1987, 934;1989, 1867; 2001,1767)

NRS 704.920 Applicabilityof provisions to company towns; examination of lines and equipment; costs;consequences of refusal to allow examination; repair of unsafe lines orequipment.

1. The provisions of NRS704.920 to 704.960, inclusive, applyto company towns, utilities and alternative sellers which provide utilityservices to company towns, and persons who own and operate company towns.

2. The Commission shall require a public utility or analternative seller, as appropriate, which provides utility services to a mobilehome park or to a company town, or an independent person who is qualified, toconduct examinations to examine and test the lines and equipment fordistributing electricity and gas within the park or town at the request of theManufactured Housing Division of the Department of Business and Industry or acity or county which has responsibility for the enforcement of the provisionsof chapter 461A of NRS. The utility oralternative seller, the person selected to conduct the examination and theCommission may enter a mobile home park or company town at reasonable times toexamine and test the lines and equipment, whether or not they are owned by autility or an alternative seller.

3. The utility or alternative seller, as appropriate,or the person selected to conduct the examination, shall conduct theexamination and testing to determine whether any line or equipment is unsafefor service under the safety standards adopted by the Commission for themaintenance, use and operation of lines and equipment for distributingelectricity and gas, and shall report the results of the examination andtesting to the Commission.

4. The owner of the mobile home park or company townshall pay for the costs of the examination and testing.

5. If the landlord of a mobile home park or owner of acompany town refuses to allow the examination and testing to be made asprovided in this section, the Commission shall deem the unexamined lines andequipment to be unsafe for service.

6. If the Commission finds:

(a) Or deems any lines or equipment within a mobilehome park or company town to be unsafe for service, it shall take appropriateaction to protect the safety of the residents of the park or town.

(b) Such lines or equipment to be unsafe for service orotherwise not in compliance with its safety standards, it may, after a hearing,order the landlord or owner to repair or replace such lines and equipment. Forthis purpose, the landlord or owner may expend some or all of the money in hisaccount for service charges for utilities, which he is required to keep under NRS 704.940.

(Added to NRS by 1983, 2032; A 1989, 1867; 1991,1984; 1993, 1925; 2001,1767)

NRS 704.930 Mannerof provision and interruption of service by landlord of mobile home park orowner of company town; notice of proposed increase in rates. If a utility or an alternative seller provides a utilityservice to a mobile home park or company town and the landlord of the park orowner of the town charges his tenants or the occupants of his dwellings forthat service, the landlord or owner shall:

1. Provide that service to his tenants or theoccupants of his dwellings in a manner which is consistent with the utilitystariffs on file with the Commission, if applicable, and any law, ordinance orgovernmental regulation relating to the provision of that service. The landlordor owner of the town shall not interrupt such a service for nonpayment ofcharges unless the interruption is performed in a manner which is consistentwith the utilitys tariffs on file with the Commission, if applicable, and anylaw, ordinance or governmental regulation relating to the manner ofinterrupting such a service for nonpayment of charges.

2. Not more than 5 days after he receives notice of aproposed increase in the rates of the utility service, give notice to histenants or those occupants of the proposed increase.

(Added to NRS by 1983, 2033; A 1989, 1868; 1991, 388,1985; 2001, 1768)

NRS 704.940 Rates;service charges; proration and limitations on certain charges for water;itemization of charges; retention of copy of billings; transfer of balance bylandlord upon termination of interest in mobile home park.

1. In a mobile home park or company town where thelandlord or owner is billed by a gas or electric utility or an alternativeseller and in turn charges the tenants or occupants of the dwellings for theservice provided by the utility or alternative seller, and the park or town:

(a) Is equipped with individual meters for each lot,the landlord or owner shall not charge a tenant or occupant for that service ata rate higher than the rate paid by the landlord or owner.

(b) Is not equipped with individual meters for eachlot, the landlord or owner shall prorate the cost of the service equally amongthe tenants of the park or occupants of the dwellings who use the service, butthe prorated charges must not exceed in the aggregate the cost of the serviceto the landlord or owner.

2. In a mobile home park or company town that:

(a) Is equipped with individual water meters for eachlot, the individual meters must be read and billed by the purveyor of thewater.

(b) Is not equipped with individual water meters foreach lot and the landlord or owner is billed by the purveyor of the water andin turn charges the tenants or occupants of the dwellings for the serviceprovided by the purveyor, the landlord or owner shall prorate the cost of theservice equally among the tenants of the park or occupants of the dwellings whouse the service, but the prorated charges must not exceed in the aggregate thecost of the service to the landlord or owner.

The landlordor owner of a mobile home park that converts from a master-metered water systemto individual water meters for each mobile home lot shall not charge or receiveany fee, surcharge or rent increase to recover from his tenants the costs ofthe conversion. The owner of a company town that is not equipped withindividual water meters shall not convert from the master-metered water systemto individual water meters.

3. To the extent that the cost of providing a utilityservice to the common area of a mobile home park or company town can beidentified, the landlord or owner may not recover the cost of the utilityservice provided to the common area by directly charging a tenant or theoccupant of a dwelling for those services.

4. The landlord of a mobile home park or owner of acompany town may assess and collect a charge to reimburse him for the actualcost of the service charge he is required to pay to a water utility serving thepark or town. If he collects such a charge, he shall prorate the actual cost ofthe service charge to the tenants or occupants of dwellings who use theservice. He shall not collect more than the aggregate cost of the service tohim.

5. The landlord may assess and collect a servicecharge from the tenants of the park for the provision of gas and electricutility services, but the amount of the charge must not be more than the tenantswould be required to pay the utility or alternative seller providing theservice. The landlord shall:

(a) Keep the money from the service charges in aseparate account and expend it only for federal income taxes which must be paidas a result of the collection of the service charge, for preventive maintenanceor for repairing or replacing utility lines or equipment when ordered orgranted permission to do so by the Commission; and

(b) Retain for at least 3 years a complete record ofall deposits and withdrawals of money from the account and file the record withthe Commission on or before March 30 of each year.

6. Money collected by the landlord or owner forservice provided by a utility or an alternative seller to the tenants of amobile home park or occupants of the dwellings may not be used to maintain,repair or replace utility lines or equipment serving the common area of themobile home park or company town.

7. The owner of a company town who provides a utilityservice directly to the occupants of the town may charge the occupants theirpro rata share of his cost of providing that service. Where meters areavailable, the pro rata share must be based on meter readings. Where meters arenot available, the owner shall determine a fair allocation which must beexplained in detail to the Commission in the reports required by NRS 704.960. The Commission may modify theallocation in accordance with its regulations if it determines the ownersmethod not to be fair. The Commission shall adopt regulations governing thedetermination of the costs which an owner of a company town may recover forproviding a utility service directly to the occupants of that town and theterms and conditions governing the provision of that service.

8. The landlord or owner shall itemize all charges forutility services on all bills for rent or occupancy. The landlord or owner maypass through to the tenant or occupant any increase in a rate for a utilityservice and shall pass through any decrease in a charge for a utility serviceas it becomes effective.

9. The landlord or owner shall retain for at least 3years a copy of all billings for utility services made to his tenants or theoccupants of his dwellings and shall make these records available upon requestto the Commission for verification of charges made for utility services.

10. A landlord whose interest in a mobile home parkterminates for any reason shall transfer to his successor in interest any balanceremaining in the account for service charges for utilities. Evidence of thetransfer must be filed with the Commission.

11. The Commission may at any time examine all booksand records which relate to the landlords or owners purchase of or billingfor a service provided by a utility or an alternative seller if he is chargingthe tenants of the mobile home park or occupants of the dwellings for thatservice.

(Added to NRS by 1983, 2033; A 1987, 935; 1989, 1868;1991, 1985; 1995, 917; 2001,1768)

NRS 704.950 Complaints:Investigation by Division of Consumer Complaint Resolution; action byCommission; enforcement of order.

1. The tenant of a lot in a mobile home park oroccupant of a dwelling in a company town who believes that the landlord orowner has violated the provisions of NRS704.930, 704.940 or 704.960 may complain to the Division ofConsumer Complaint Resolution of the Commission. The Division shall receive andpromptly investigate the complaint. If the Division is unable to resolve thecomplaint, the Division shall transmit the complaint and its recommendation tothe Commission.

2. The Commission shall investigate, give notice andhold a hearing upon the complaint, applying to the extent practicable theprocedures provided for complaints against public utilities in chapter 703 of NRS.

3. If the Commission finds that the landlord of themobile home park or owner of the company town has violated the provisions of NRS 704.930, 704.940 or 704.960, it shall order him to cease anddesist from any further violation. If the violation involves an overcharge fora service, the Commission shall determine the amount of the overcharge andorder the landlord or owner to return that amount to the tenant or occupantwithin a specified time.

4. If the landlord or owner fails or refuses to complywith its order, the Commission may compel compliance by any appropriate civilremedy available to it under this chapter. For the purposes of compellingcompliance by the landlord or owner, the Commission may use such methods as areavailable for the Commission to compel the compliance of a public utility.

(Added to NRS by 1983, 2033; A 1987, 936; 1991, 1987;1997, 1918)

NRS 704.960 Annualreport to be filed by landlord of mobile home park or owner of company town. Each landlord of a mobile home park or owner of a companytown shall submit an annual report to the Commission. The report must containdetailed information on the collections and expenditures of the landlords orowners account for service charges for utilities, information necessary todetermine compliance with NRS 704.940,details of any changes in ownership during the period covered by the report andsuch other information as the Commission deems necessary to determine whetherthe landlord or owner has complied with the provisions of this chapter whichapply to mobile home parks and company towns. The Commission shall byregulation provide for the annual filing of the reports.

(Added to NRS by 1987, 934; A 1991, 1988)

LIQUEFIED PETROLEUM GAS SERVICE

NRS 704.964 Leaseof tank for storage of liquefied petroleum gas: Removal of tank upon request;requirements for refund; penalty.

1. Each dealer who leases a tank for the storage ofliquefied petroleum gas to a customer shall, upon the request of a customer,remove the tank from the customers premises.

2. The dealer shall refund to the customer:

(a) On a pro rata basis, an amount equal to the rentfor the unused portion of the lease; and

(b) An amount equal to the value of the liquefiedpetroleum gas which remains in the tank when the tank is removed. Incalculating the value of the liquefied petroleum gas, the dealer shall use theprice the customer paid for the liquefied petroleum gas.

3. The dealer shall mail the refund to the customerwithin 15 days after the tank is removed from the customers premises.

4. Any person who violates any of the provisions ofthis section is guilty of a misdemeanor.

(Added to NRS by 1989, 1834)(Substituted in revisionfor NRS 704.765)

NATURAL GAS SERVICE

Discretionary Service

NRS 704.9901 Collectionof taxes, fees and assessments from customers: Duties of providers; billingrequirements; disciplinary action for failure to comply.

1. Each provider of discretionary natural gas serviceshall:

(a) Collect from each customer who is purchasingnatural gas from the provider of discretionary natural gas service any tax, feeor assessment that would be due a governmental entity had the customercontinued to purchase natural gas from a public utility that was regulatedfully by the Commission pursuant to NRS704.001 to 704.960, inclusive; and

(b) Remit any tax, fee or assessment collected pursuantto paragraph (a) to the applicable governmental entity.

2. Each person who is responsible for billing acustomer who is purchasing natural gas from a provider of discretionary naturalgas service shall ensure that the amount which the customer must pay pursuantto this section is set forth as a separate item or entry on each bill submittedto the customer.

3. Upon petition by a governmental entity to which atax, fee or assessment must be remitted pursuant to this section, theCommission may limit, suspend or revoke any license or other authorityconferred by the Commission upon a provider of discretionary natural gasservice if the Commission, after providing an appropriate notice and hearing,determines that the provider of discretionary natural gas service has failed topay the tax, fee or assessment.

(Added to NRS by 2003, 3028)

Resource Planning

NRS 704.991 Informationalreport to Commission required regarding anticipated demand, estimated cost,sources of gas and significant operational or capital requirements. A utility which supplies natural gas in this state shallfile annually with the Commission, in a format prescribed by the Commission, aninformational report which describes:

1. The anticipated demand for natural gas made on itssystem by its customers;

2. The estimated cost of supplying natural gas sufficientto meet the demand and the means by which the utility proposes to minimize thatcost;

3. The sources of planned acquisitions of natural gas,including an estimate of the cost and quantity of the acquisitions to be madefrom each source and an assessment of the reliability of the source; and

4. Significant operational or capital requirements ofthe utility related to its provision of gas service in this state.

(Added to NRS by 1987, 699; A 1997,1913)(Substituted in revision for NRS 704.755)

Competitive Service

NRS 704.993 Definitions. As used in NRS 704.993to 704.999, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 704.994, 704.995 and 704.996 have the meanings ascribed to themin those sections.

(Added to NRS by 1997, 1902; A 2003, 3030)

NRS 704.994 Alternativeseller defined. Alternative seller means aseller of any competitive, discretionary or potentially competitive componentof natural gas service.

(Added to NRS by 1997, 1902)

NRS 704.995 Persondefined. Person includes a natural person,corporation, partnership, public utility, government, governmental agency andpolitical subdivision of a government.

(Added to NRS by 1997, 1902)

NRS 704.996 Potentiallycompetitive service defined. Potentially competitiveservice means a component of service relating to the provision of natural gasto customers in this state that is determined by the Commission to be suitablefor purchase by customers from alternative sellers.

(Added to NRS by 1997, 1902)

NRS 704.997 Alternativeplan of regulation for utility that supplies natural gas: Requirements;regulations; applicability of statutory provisions; use of name or logo byaffiliate; sale of service relating to supply of natural gas by unlicensedalternative seller unlawful.

1. Except as otherwise provided in this section, uponthe receipt of a specific request for an exemption by a public utility thatsupplies natural gas, the Commission may, to the extent it deems necessary,exempt any service offered by the public utility from the strict application ofone or more provisions of this chapter. Such an exemption may be made only upona determination by the Commission, after notice and an opportunity for ahearing, that the service is competitive, discretionary or potentiallycompetitive.

2. The Commission shall adopt regulations necessary toestablish an alternative plan of regulation of a public utility that suppliesnatural gas and that is otherwise subject to regulation pursuant to theprovisions of this chapter. The alternative plan may include, but is notlimited to, provisions that:

(a) Allow adjustment of the rates charged by the publicutility during the period in which the utility elects the alternative plan ofregulation.

(b) Except as otherwise provided in this section,specify the provisions of this chapter that do not apply to a public utilitywhich elects to be regulated under the alternative plan.

(c) Provide for flexibility of pricing for servicesthat are discretionary, competitive or potentially competitive.

3. A public utility that elects to be regulated underthe alternative plan established pursuant to this section:

(a) Remains subject to the provisions of NRS 704.033, 704.035 and 704.9985; and

(b) Is not subject to the remaining provisions of thischapter to the extent specified pursuant to this section.

4. In providing a potentially competitive service, anaffiliate of a provider of a noncompetitive service may use the name or logo,or both, of the provider of noncompetitive service.

5. It is unlawful for an alternative seller to sellany service relating to the supply of natural gas to a customer for his consumptionwithin this State without first having obtained a license from the Commissionto do so.

(Added to NRS by 1997, 1902; A 1999, 3271; 2003, 3030)

NRS 704.998 Licensingof alternative sellers: Requirements; regulations; denial, limitation,suspension or revocation.

1. Not later than January 1, 1999, the Commissionshall, by regulation, set forth the procedures and conditions that alternativesellers must satisfy before obtaining a license to sell potentially competitiveservices to customers in this state, including, but not limited to:

(a) Safety;

(b) Reliability of service;

(c) Financial reliability;

(d) Fitness to serve new customers; and

(e) Billing practices and customer services, includingthe initiation and termination of service.

2. The Commission may deny the application of aprospective alternative seller for a license, or may limit, suspend or revoke alicense issued to an alternative seller, if the action is necessary to protectthe interests of the public or to enforce the provisions of this chapter or aregulation of the Commission. In determining whether to take any of thoseactions, the Commission may consider whether the applicant for or holder ofsuch a license, or any affiliate thereof, has engaged in activities which areinconsistent with effective competition.

(Added to NRS by 1997, 1903)

NRS 704.9985 Collectionof taxes, fees and assessments from customers: Duties of public utilities andalternative sellers; billing requirements; disciplinary action for failure tocomply.

1. Each public utility that elects to be regulatedunder an alternative plan of regulation pursuant to NRS 704.997 shall:

(a) Collect from each customer who is purchasingnatural gas from the public utility under the alternative plan of regulationany tax, fee or assessment that would be due a governmental entity had thecustomer continued to purchase natural gas from a public utility that wasregulated fully by the Commission pursuant to NRS704.001 to 704.960, inclusive; and

(b) Remit any tax, fee or assessment collected pursuantto paragraph (a) to the applicable governmental entity.

2. Each alternative seller shall:

(a) Collect from each customer who is purchasingnatural gas from the alternative seller any tax, fee or assessment that wouldbe due a governmental entity had the customer continued to purchase natural gasfrom a public utility that was regulated fully by the Commission pursuant to NRS 704.001 to 704.960, inclusive; and

(b) Remit any tax, fee or assessment collected pursuantto paragraph (a) to the applicable governmental entity.

3. Each person who is responsible for billing acustomer who is purchasing natural gas from a public utility under analternative plan of regulation or from an alternative seller shall ensure thatthe amount which the customer must pay pursuant to this section is set forth asa separate item or entry on each bill submitted to the customer.

4. Upon petition by a governmental entity to which atax, fee or assessment must be remitted pursuant to this section, theCommission may limit, suspend or revoke any license or other authorityconferred by the Commission upon a public utility or alternative seller if theCommission, after providing an appropriate notice and hearing, determines thatthe public utility or alternative seller has failed to pay the tax, fee orassessment.

(Added to NRS by 2003, 3028)

NRS 704.999 Restorationof service: Conditions; tariffs.

1. A customer of natural gas within the serviceterritory of a public utility that supplies natural gas who obtains his ownsupply of natural gas or capacity on a pipeline from a person other than thepublic utility for at least 30 continuous days may seek restoration of servicefrom the public utility in accordance with the tariffs filed pursuant to thissection.

2. A public utility that supplies natural gas shallfile a tariff with the Commission that states the terms and conditions underwhich a customer may restore his gas service from the public utility pursuantto this section. The tariff must be reviewed by the Commission and mustinclude, without limitation:

(a) A procedure for reestablishing the gas service;

(b) Methods of accounting to be used for identifyingand billing actual costs incurred by the public utility for:

(1) Reestablishing service;

(2) Obtaining new supplies of gas for thecustomers; and

(3) Acquiring and maintaining the necessarycapacity for transporting the supplies of gas, if applicable;

(c) Methodology for determining the costs ofadministration and overhead costs;

(d) Methods of accounting to determine any incrementalcosts incurred by the public utility to serve the customer or group ofcustomers;

(e) Procedures for curtailment to be used in establishingpriorities of service;

(f) Procedures that will be available to customers toresolve disputes in billing; and

(g) The minimum period during which the customer musttake the resumed service.

3. For the purposes of this section, a public utilitymay charge its actual cost of obtaining any additional supply of gas to servethe returning customers. The Commission shall verify the compliance of a publicutility with its tariff filed pursuant to this section.

(Added to NRS by 1997, 1903)

 

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