Nevada Administrative Code
Chapter 538 - Colorado River Commission of Nevada
MARKETING OF ELECTRIC POWER
Contractors
Section 538.746 - Nonperformance: Notice; suspension of allocation of power; temporary reallocation of power; reinstatement of allocation of power; termination of allocation and reallocation of power

1. If a contractor fails or refuses to perform any of its obligations under any of its contracts with the Commission, including, without limitation, any agreement confirming the purchase of supplemental power from any source, and the Executive Director determines that the failure or refusal may expose the Commission to liability or expose this State to financial risk, the Executive Director shall provide written notice of the nonperformance to the contractor.

2. If the contractor fails or refuses to cure the nonperformance within 15 days after the date of the written notice, the Executive Director may, after giving 3 days' notice in writing to the contractor, suspend the contractor's allocation of hydroelectric power under NAC 538.340 to 538.746, inclusive, and discontinue furnishing electric service specified in its contracts with the contractor pending any further action taken by the Commission pursuant to this section.

3. After the suspension of the contractor's allocation of hydroelectric power pursuant to subsection 2, the Executive Director may reallocate the power to any other contractor or contractors on a short-term basis. A contractor receiving an allocation of power pursuant to this subsection shall comply with all terms and conditions applicable to that power under the contract between the Commission and the contractor whose allocation was suspended.

4. Within 30 days after the suspension of the contractor's allocation of hydroelectric power, the contractor may petition the Commission for the reinstatement of the allocation. The Commission will hold a hearing on the petition within 10 days after providing notice of the hearing as required by NAC 538.075 to 538.330, inclusive.

5. If the contractor fails to file a petition for reinstatement in a timely manner or if, after a hearing on such a petition, the Commission denies the petition, the Commission may permanently terminate the contractor's allocation of hydroelectric power and permanently discontinue electric service to the contractor.

6. Upon the permanent termination of a contractor's allocation of hydroelectric power, the Commission will reallocate the hydroelectric power pursuant to NAC 538.455.

7. This section does not preclude the Commission from pursuing at any time any other remedy for breach of contract that is available to the Commission.