Current through September 16, 2024
1. Except as
otherwise provided in this subsection, an electric utility that primarily
serves densely populated counties shall include in its supply plan an emissions
reduction and capacity replacement plan. The utility shall file its initial
emissions reduction and capacity replacement plan on or before May 1, 2014, and
shall file each subsequent emissions reduction and capacity replacement plan
with its resource plan. The utility may amend its emissions reduction and
capacity replacement plan in its resource plan or by filing an amendment to its
resource plan.
2. With respect to
the retirement or elimination of coal-fired electric generating capacity which
must be provided for in the emissions reduction and capacity replacement plan
of an electric utility that primarily serves densely populated counties
pursuant to paragraph (a) of subsection 2 of
NRS
704.7316, the emissions reduction and
capacity replacement plan of the utility must:
(a) Include a schedule specifying the date by
which the utility proposes to retire or eliminate:
(1) Not less than 300 megawatts of coal-fired
electric generating capacity, which must not be later than December 31,
2014.
(2) Not less than 250
megawatts of coal-fired electric generating capacity in addition to the
generating capacity retired or eliminated pursuant to subparagraph (1), which
must not be later than December 31, 2017.
(3) Not less than 250 megawatts of coal-fired
electric generating capacity in addition to the generating capacity retired or
eliminated pursuant to subparagraphs (1) and (2), which must not be later than
December 31, 2019.
(b)
Identify each coal-fired electric generating unit that the utility proposes to
retire or eliminate.
(c) Specify
the amount of planning capacity associated with each coal-fired electric
generating unit that the utility proposes to retire or eliminate.
(d) Identify the estimated unamortized
balance of the utility's investment in each coal-fired electric generating unit
that the utility proposes to retire or eliminate.
(e) Identify the estimated unamortized
balance, as of the proposed retirement or elimination date, of the utility's
investment in common assets directly related to each coal-fired electric
generating unit that the utility proposes to retire or eliminate.
(f) Provide an estimate of the timeline for,
and costs that the utility reasonably anticipates will be incurred in, the
process of decommissioning each coal-fired electric generating unit that the
utility proposes to retire or eliminate.
(g) Provide an estimate of the timeline for,
and costs that the utility reasonably anticipates will be incurred in, the
process of remediating the land upon which each coal-fired electric generating
unit that the utility proposes to retire or eliminate is located.
(h) Provide an estimate of any offsets of the
costs of decommissioning each coal-fired electric generating unit that the
utility proposes to retire or eliminate and remediating the land upon which
each such unit is located.
(i)
Identify any contractual or regulatory obligations associated with each
coal-fired electric generating unit that the utility proposes to retire or
eliminate.
(j) Provide the costs,
if any, associated with terminating any contractual or regulatory obligations
identified pursuant to paragraph (i).
(k) Provide all contract terms and regulatory
obligations that survive the retirement or elimination of each coal-fired
electric generating unit that the utility proposes to retire or
eliminate.
(l) Provide the
anticipated end date of any liability associated with the contractual and
regulatory obligations that survive the retirement or elimination of each
coal-fired electric generating unit that the utility proposes to retire or
eliminate.
3. With
respect to the construction and acquisition of, or contracting for, 350
megawatts of electric generating capacity from renewable energy facilities
which must be provided for in the emissions reduction and capacity replacement
plan of an electric utility that primarily serves densely populated counties
pursuant to paragraph (b) of subsection 2 of
NRS
704.7316, the emissions reduction and
capacity replacement plan of the utility must:
(a) Include a schedule for the issuance of
requests for proposals for 300 megawatts of nameplate generating capacity from
new renewable energy facilities that:
(1)
Specifies the date by which the utility will release public notice for:
(I) The first request for proposals for 100
megawatts of nameplate generating capacity from new renewable energy
facilities, which must not be later than December 31, 2014.
(II) The second request for proposals for 100
megawatts of nameplate generating capacity from new renewable energy
facilities, which must not be later than December 31, 2015.
(III) The third request for proposals for 100
megawatts of nameplate generating capacity from new renewable energy
facilities, which must not be later than December 31, 2016.
(2) For each request for proposals
described in subparagraph (1), identifies the approximate date by which the
utility reasonably anticipates:
(I)
Announcing the entity with which the utility intends to negotiate binding
transactional documents.
(II)
Concluding negotiations for binding transactional documents.
(III) Filing an amendment to its emissions
reduction and capacity replacement plan to seek the Commission's approval and
acceptance of final transactions to construct, acquire or contract with the new
renewable energy facilities.
(b) Provide for the construction or
acquisition of a portion of a new renewable energy facility or facilities with
a generating capacity of 50 megawatts to be owned and operated by the utility.
With respect to the new renewable energy facility or facilities described in
this paragraph, the emissions reduction and capacity replacement plan of the
utility must include:
(1) A reasonable
description of the new renewable energy facility or facilities.
(2) A budget for the new renewable energy
facility or facilities.
(3) The
date by which the utility proposes to begin construction of or acquire the new
renewable energy facility or facilities, which must not be later than December
31, 2017.
(4) If applicable, the
date by which the utility reasonably anticipates completing the construction of
the new renewable energy facility or facilities, which must not be later than
December 31, 2021.
(5) A
description of the ancillary utility facilities, if any, necessary to operate
or interconnect the new renewable energy facility or facilities.
(6) The performance and reliability standards
to which the new renewable energy facility or facilities will be subject and a
statement of how those standards compare to standards that the utility has
mandated from other renewable energy facilities with which the utility has
executed power purchase agreements.
An electric utility that primarily serves densely populated
counties shall not accept proposals responsive to a request for proposals
described in sub-subparagraphs (II) and (III) of subparagraph (1) of paragraph
(a) until the previous request for proposals process has been completed. If an
electric utility that primarily serves densely populated counties or an
affiliate of such a utility submits a proposal in response to a request for
proposals described in subparagraph (1) of paragraph (a), the utility must use
an independent evaluator selected in consultation with the staff to identify
the renewable energy facility or facilities that satisfy the criteria set forth
in subparagraph (4) of paragraph (b) of subsection 2 of
NRS
704.7316, and shall include in the request
for proposals the performance and reliability standards to which the new
renewable energy facility or facilities will be subject and a statement of how
those standards compare to standards that the utility has mandated from other
renewable energy facilities with which the utility has executed power purchase
agreements. A utility may not recover from ratepayers any of the costs
associated with the use of an independent evaluator pursuant to this
subsection.
4. With respect to the construction or
acquisition and ownership of electric generating plants with an electric
generating capacity of 550 megawatts which must be provided for in the
emissions reduction and capacity replacement plan of an electric utility that
primarily serves densely populated counties pursuant to paragraph (c) of
subsection 2 of
NRS
704.7316, the emissions reduction and
capacity replacement plan of the utility must include:
(a) A reasonable description of the electric
generating plant or plants with a total generating capacity of approximately
550 megawatts that the utility proposes to construct or acquire and
own.
(b) A budget for each such
electric generating plant.
(c) The
date by which the utility proposes to begin construction or complete the
acquisition and obtain ownership of the electric generating plant or
plants.
(d) If applicable, the date
by which the utility reasonably anticipates completing the construction of the
electric generating plant or plants.
(e) A description of the ancillary utility
facilities, if any, necessary to operate or interconnect the electric
generating plant or plants.
(f) The
performance and reliability standards to which the electric generating plant or
plants will be subject and a statement of how those standards compare to
standards that the utility has mandated from other electric generating plants
with which the utility has executed power purchase agreements.
The emissions reduction and capacity replacement plan of the
utility may include a request for approval to construct or acquire ancillary
utility facilities necessary for the operation or interconnection of an
electric generating plant or plants identified in this subsection.
5. If, pursuant to
paragraph (d) of subsection 2 of
NRS
704.7316, the emissions reduction and
capacity replacement plan of an electric utility that primarily serves densely
populated counties includes the construction or acquisition of one or more
natural gas-fired electric generating plants as replacement capacity for the
retirement or elimination of coal-fired electric generating capacity, the
emissions reduction and capacity replacement plan of the utility must provide
for a strategy for procuring fixed-price physical gas. The strategy must:
(a) Include an estimate of the costs to
ratepayers and a cost benefit analysis.
(b) Identify the risks associated with the
uncertainty of natural gas pricing.
(c) Minimize price volatility.
(d) Maximize the reliability of the supply of
natural gas.
6. With
respect to the plan for tracking and specifying the accounting treatment for
all costs associated with the decommissioning of the coal-fired electric
generating plants identified for retirement or elimination which must be
provided for in the emissions reduction and capacity replacement plan of an
electric utility that primarily serves densely populated counties pursuant to
paragraph (e) of subsection 2 of
NRS
704.7316, the emissions reduction and
capacity replacement plan of the utility must:
(a) Include a plan for tracking and
specifying the accounting treatment of all costs:
(1) Associated with the retirement and
decommissioning of the coal-fired electric generating units identified for
retirement or elimination under the emissions reduction and capacity
replacement plan.
(2) Of
remediating the land upon which each coal-fired electric generating unit that
the utility proposes to retire or eliminate is located.
(b) Provide:
(1) That the utility transfer any
undepreciated amount or net book value of each coal-fired electric generating
unit retired or eliminated pursuant to an approved emissions reduction and
capacity replacement plan to a regulatory asset or liability account.
(2) That until a regulatory asset or
liability has been processed in a general rate case and is included in the
utility's revenue requirement, the utility must amortize the regulatory asset
balance, or add to the regulatory liability balance, using the depreciation
rates which are included in general rates at the time each unit is retired or
eliminated.
(3) For the
accumulation of all decommissioning and remediation costs associated with each
coal-fired electric generating unit retired or eliminated pursuant to an
approved emissions reduction and capacity replacement plan in a separate
regulatory asset or liability account.
(4) For applying a carrying charge equal to
the currently approved AFUDC rate only on the decommissioning and remediation
costs in the regulatory asset or liability account.
(5) For salvage and any other appropriate
offsets.
7.
In addition to the information required to be included in the emissions
reduction and capacity replacement plan of an electric utility that primarily
serves densely populated counties pursuant to subsections 1 to 6, inclusive,
the emissions reduction and capacity replacement plan of the utility must
include:
(a) A schedule of the information
described in NAC 704.945 that specifically identifies the amount of planning
capacity required to replace the capacity of coal-fired electric generating
units that are retired or eliminated under the emissions reduction and capacity
replacement plan and the time at which the utility plans to add such
capacity.
(b) An analysis of all
applicable provisions of NAC 704.9005 to 704.9525, inclusive, and, for each
alternative plan presented, an analysis of:
(1) The net economic benefit to this State
based upon the factors set forth in NAC 704.9357.
(2) The opportunity provided by the
alternative plan for the creation of new jobs in this State, including, without
limitation, direct and indirect job creation and the retention of permanent
jobs.
(3) The cost of the
alternative plan to customers, including, without limitation, the average
annual impact on rates.
(4) The
value of the alternative plan to customers, including, without limitation, the
benefit and the usefulness of the alternative to customers.
(c) A descriptive assessment of
how each alternative plan might impact employment in this State through
increases or decreases in electric rates, which must explain the development
of, and document and justify, the descriptive assessment. The descriptive
assessment must include the results, if any, of a survey of the utility's 20
largest customers, as described in the utility's most recent FERC Form 556,
concerning how increases or decreases in electric rates resulting from each
alternative plan could impact the customer's ability to retain and create jobs
in this State.
(d) A narrative
explaining the selection of the emissions reduction and capacity replacement
plan based upon the relative benefits demonstrated in the analyses required by
paragraph (b) and the assessment required by paragraph (c).
8. In addition to the information
required by subsections 1 to 7, inclusive, an electric utility that primarily
serves densely populated counties shall propose, as part of its initial
emissions reduction and capacity replacement plan, a request for proposals
process that will be used to provide for a comparative analysis of the
alternatives available for the 550 megawatts of electric generating capacity to
be constructed or acquired and owned by the utility pursuant to paragraph (c)
of subsection 2 of
NRS
704.7316. At a minimum, the request for
proposals process must provide:
(a) A
timeline for the issuance of requests for proposals and the evaluations of
proposals.
(b) A clear definition
of the product or products sought in the request for proposals
process.
(c) Evaluation criteria,
including, without limitation, bidder and resource criteria that is consistent
with the considerations to be assessed pursuant to subsection 8 of
NRS
704.746.
The utility may recover the just and reasonable costs
associated with the utilization of the request for proposals process proposed
pursuant to this subsection. The utility shall include the results of the
request for proposals process in future emissions reduction and capacity
replacement plans and any amendments to an emissions reduction and capacity
replacement plan to support the utility's selection of replacement resources as
part of the 550 megawatts of electric generating capacity to be constructed or
acquired and owned by the utility pursuant to paragraph (c) of subsection 2 of
NRS
704.7316.
Added to NAC by Pub.
Utilities Comm'n by R131-13, eff. 3-28-2014
NRS 704.7322,
704.741
