Nevada Administrative Code
Chapter 538 - Colorado River Commission of Nevada
MARKETING OF ELECTRIC POWER
Contractors
Section 538.744 - Determination of creditworthiness; requirements for collateral

1. The Commission may require a contractor to pay collateral, make payments to a cash working capital fund or prepay for power pursuant to this section.

2. During October in each operating year, and at any other time it deems necessary, the Commission will conduct a review to determine the creditworthiness of each of its contractors.

3. After the creditworthiness review conducted pursuant to subsection 2, the Commission will establish the amount of collateral which a contractor is required to furnish and prescribe the manner in which the contractor is required to furnish that collateral pursuant to its contracts with the Commission. In no case will the amount of collateral established by the Commission be less than one-fourth of the contractor's gross annual purchases. The Commission will not require any of the following to furnish collateral:

4. In addition to requiring a contractor to furnish collateral pursuant to subsection 3, the Commission may require a contractor to make payments to a cash working capital fund established by the Commission or prepay for power purchased from the Commission in accordance with requirements established by the Commission, or both, as deemed necessary by the Commission to:

5. If a contractor does not provide and maintain the full amount of the collateral required by subsection 3 or make payments to a cash working capital fund as required by the Commission pursuant to subsection 4, the Commission may, in addition to its other remedies and in the course of its normal invoicing, bill the contractor for an amount necessary to furnish the required collateral or fund working capital within a period established by the Commission, but not to exceed 6 months.

6. Notwithstanding any other provision of NAC 538.340 to 538.746, and sections 9 to 16, inclusive, if a contractor fails to provide and maintain the full amount of required collateral within the period authorized by the Commission, fails to make payments to a cash working capital fund as required by the Commission or fails to comply in a timely manner with any prepayment requirements established by the Commission, inclusive, the Commission may at any time require a contractor to furnish collateral within 30 days after written demand in an amount that is greater than the minimum amount set forth in subsection 3, as may be necessary to protect the State of Nevada from any loss that it might suffer as a result of the contractor's breach of any covenant or condition of any contract with the Commission. That amount of the collateral which is greater than the minimum amount set forth in subsection 3 will be calculated on any rational and appropriate basis as determined by the Commission.

7. As used in this section: