Current through September 16, 2024
1. All costs of
implementing programs for energy efficiency and conservation calculated
pursuant to paragraph (a) of subsection 2 and the amounts calculated pursuant
to paragraph (b) of subsection 2 must be accounted for in the books and records
of an electric utility separately from costs and amounts attributable to any
other activity. All accounts must be maintained in a manner that will allow
costs and amounts attributable to specific programs to be readily
identified.
2. An electric utility
may, pursuant to subsection 3, recover:
(a)
All reasonably incurred costs of implementing programs for energy efficiency
and conservation that have been described in the demand side plan of the
electric utility and approved by the Commission pursuant to NAC
704.9494 as part of the action
plan of the electric utility, including, without limitation, the costs for
labor, overhead, materials, incentives paid to customers, advertising,
marketing, monitoring and evaluation.
(b) An amount equal to the costs calculated
pursuant to paragraph (a) multiplied by the electric utility's authorized
overall rate of return grossed up for taxes applicable to the utility's equity
portion of the authorized rate of return.
3. To recover the reasonably incurred costs
of implementing programs for energy efficiency and conservation calculated
pursuant to paragraph (a) of subsection 2 and the amounts calculated pursuant
to paragraph (b) of subsection 2, an electric utility must:
(a) Establish and maintain separate
subsidiary records of the subaccounts of FERC Account No. 182.3 (Other
Regulatory Assets) for each program described in the demand side plan of the
electric utility and approved by the Commission pursuant to NAC
704.9494 as part of the action
plan of the electric utility. These records must clearly delineate all costs
calculated pursuant to paragraph (a) of subsection 2 and amounts calculated
pursuant to paragraph (b) of subsection 2 and be maintained by program by month
by rate effective period.
(b) At
the time the electric utility files an annual deferred energy accounting
adjustment application pursuant to subsection 3 of
NRS
704.187, apply to the Commission to establish
the following period-specific rates:
(1) A
prospective base program cost rate which is determined by allocating in the
manner approved by the Commission in the most recent general rate case of the
electric utility the total cost of programs for energy efficiency and
conservation that are described in the demand side plan approved by the
Commission. The prospective base program cost rate for a customer class is an
amount equal to the cost allocated to that customer class pursuant to this
subparagraph divided by the projected kilowatt hour sales for that class for
the relevant period.
(2) A deferred
program cost rate to clear the period-specific balance over 12 months. The
deferred program cost rate is an amount equal to the period-specific balance in
the subaccount of FERC Account No. 182.3 for the cost of programs for energy
efficiency and conservation divided by the applicable test period kilowatt hour
sales.
(c) At the time
the electric utility files an annual deferred energy accounting adjustment
application pursuant to subsection 3 of
NRS
704.187, file a statement that reports the
Nevada jurisdictional earned rate of return for each month of the test period
for the electric utility. The Nevada jurisdictional earned rate of return must
be calculated for each month of the test period on a 12-month average rate
base. The statement must be accompanied by all subsidiary schedules, and any
adjustments made thereto, necessary to support the calculations.
4. Except as otherwise provided in
subsection 8, if the Nevada jurisdictional earned rate of return for the last
month of the test period reported for an electric utility pursuant to paragraph
(c) of subsection 3 exceeds the rate of return last authorized by the
Commission to set rates for the electric utility, the electric utility must, at
the time the electric utility files the annual deferred energy accounting
adjustment application pursuant to subsection 3 of
NRS
704.187:
(a) File a statement that reports
calculations of:
(1) The amount of revenue
which caused the electric utility to exceed the rate of return last authorized
by the Commission;
(2) An
adjustment to the amount calculated pursuant to paragraph (b) of subsection 2;
and
(3) The carrying charges at a
monthly rate of 1/12 of the authorized overall rate of return on the adjustment
amount calculated pursuant to subparagraph (2).
(b) Establish a rate of credits for
adjustments calculated pursuant to subparagraph (2) of paragraph (a)
attributable to each class of service and which are identifiable from the
information maintained in accordance with paragraph (a) of subsection
3.
5. Except as
otherwise provided in subsection 8, an electric utility must:
(a) Record any adjustment calculated pursuant
to subparagraph (2) of paragraph (a) of subsection 4 in a subaccount of FERC
Account No. 254.
(b) Transfer any
balance which remains in the subaccount of FERC Account No. 254 at the end of
the amortization period to the appropriate subaccount of FERC Account No. 182.3
for the current period.
(c)
Maintain sufficiently detailed information to identify the amount of the
adjustment attributable to each class of service.
6. Except as otherwise provided in subsection
8, the sum of the adjustment calculated pursuant to subparagraph (2) of
paragraph (a) of subsection 4 and any adjustments for carrying charges made to
subaccounts of FERC Account No. 182.3 must not exceed the amount of revenue
calculated pursuant to subparagraph (1) of paragraph (a) of subsection
4.
7. An electric utility shall
account for period-specific costs incurred to implement a program for energy
efficiency and conservation calculated pursuant to paragraph (a) of subsection
2, amounts calculated pursuant to paragraph (b) of subsection 2 and revenues
received from the period-specific prospective base program cost rate in the
following manner:
(a) On a monthly basis, the
electric utility shall record in a subaccount of FERC Account No. 182.3 the
program costs incurred, amounts calculated pursuant to paragraph (b) of
subsection 2 and the revenues received from the prospective base program cost
rate for the program for energy efficiency and conservation.
(b) The electric utility shall apply a
carrying charge at the rate of 1/12 of the authorized overall rate of return to
the unamortized balance in the subaccounts of FERC Account No. 182.3. If, in
any month, the balance in a subaccount of FERC Account No. 182.3 is a debit, an
adjustment amount must be calculated in an amount equal to the amount which
exceeds the electric utility's last authorized rate of return that was used to
set rates for the electric utility or any remainder after the rate of return
has been applied to the carrying charge calculation for deferred energy
pursuant to NAC
704.150.
8. If the Commission authorizes a rate
adjustment mechanism for an electric utility pursuant to paragraph (b) of
subsection 1 of
NRS
704.785, the provisions of subsections 4, 5
and 6 do not apply to the electric utility.
Added to NAC by Pub.
Utilities Comm'n by R004-04, eff. 5-25-2004; A by R162-07, 6-17-2008; R051-09,
1-28-2010; R042-10, 7-22-2010; A by
R046-15,
eff. 10/27/2015; A by
R055-18A,
eff. 6/13/2019
NRS
703.025,
704.210
and
704.785
