1. Except as otherwise provided by subsection
3, all amounts incurred in carrying out the provisions of NAC 704.800 to
704.876, inclusive, must be treated as current operating expenses of the
utility and may be recovered as follows:
(a)
Such expenses must be deferred by making appropriate credits to Accounts 908
and 909 and debiting FERC Account 186.
(b) Appropriate deferred income tax amounts
must be calculated and recorded by debiting FERC Account 410.1 and crediting
FERC Account 283. Separate subaccounts for such amounts must be
maintained.
(c) The Commission will
establish a monthly base cost at the time of each general rate case. The
monthly base cost will be calculated by dividing such expenses by 12.
(d) Each month the utility must compare the
amount of the base cost with the actual amount of such expenses incurred in the
month. If the actual charges are greater than the base cost, the difference
must be credited in separate subaccounts in Accounts 908 and 909, and a debit
in the same amount must be recorded in a separate subaccount in Account 186,
Other Deferred Debits. If the actual charges are less than the base cost, the
difference must be recorded as a debit in those subaccounts in Accounts 908 and
909, and a credit in the same amount must be recorded in the subaccount in
Account 186.
(e) Any accumulated
debit or credit balance in the subaccount in Account 186 must be cleared once
each year through an amortization charge or credit to be paid or received by
each of the utility's customers.
(f) Prior approval of the amount to be
amortized must be obtained from the Commission. A petition for such an approval
may be filed concurrently with an application for a Deferred Energy Accounting
Adjustment or a Purchased Gas Adjustment.
(g) Each petition for such an approval must
include the appropriate rate for amortization, based on cents per kilowatt-hour
or cents per therm and based upon recorded sales in the test year. In addition,
the petition must be accompanied by an exhibit showing the derivation of the
rate and a summary of any entries made to Account 186 for such
expenses.
2. All
revenues received through such an amortization must be credited to Account 186,
less an allowance for mill assessments and uncollectible expenses in an amount
equal to the rate derived from the utility's last general rate case times gross
revenues received from the amortization. A debit to the account must be made in
an amount equal to the carrying charges on the balance at the end of the month
of the entries made to the account pursuant to NAC 704.800 to 704.876,
inclusive. The carrying charges must be calculated at a rate equal to
one-twelfth of the overall rate of return last authorized for the utility by
the Commission.
3. Expenses
incurred in supplying or installing material or equipment for conserving
energy, except for measures required to be offered by subsection 1 of NAC
704.832, must be charged directly to the customer for whom those measures were
provided.
Added to NAC by Pub.
Service Comm'n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm'n by R058-06,
6-28-2006
