Current through December 12, 2024
An application for the authorization of a proposed transaction
must include information relating to the effect of the proposed transaction on
competition in the markets for energy services and products in which the
resulting energy utility will do business, including, without
limitation:
1. An analysis of the
competitive effect of the transaction on competition in the market for each
energy service or product in which the resulting energy utility intends to do
business. The analysis must include, without limitation:
(a) An identification of the relevant
products and services that are sold and will be sold by the parties to the
proposed transaction before and after the completion of the proposed
transaction, including, without limitation, an identification of:
(1) Generation services sold at wholesale or
retail, including, without limitation, capacity, energy services and
coordination services;
(2) Gas
supply services, including, without limitation, services for:
(I) Baseload/swing (load following)
supplies;
(III) Back-up service;
and
(IV) Balancing of supplies when
customers take delivery of gas from the distribution system or pipeline that is
not equal to the amount of gas scheduled to be delivered to the
customers;
(3)
Transmission services;
(4) Pipeline
transportation, including, without limitation:
(II) Interruptible transportation;
and
(5) Generation services necessary
to support transmission service, including, without limitation, services for:
(I) Regulation and frequency response
pursuant to which adequate response capability is provided to balance the
supply resources continually with the load and to maintain scheduled
interconnection frequency within a control area over a single hour;
(II) Energy imbalance to be provided when a
difference occurs between the scheduled energy to be delivered and the amount
of energy actually delivered to a load located within a control area over a
single hour;
(III) Loss
compensation pursuant to which capacity and energy losses are compensated when
power is delivered for transmission or to distribution customers, or
both;
(IV) Reactive power and
voltage control pursuant to which reactive power from generation resources will
be provided to support the reliable operation of the transmission
system;
(V) Operating reserve -
spinning reserve, pursuant to which generation capacity will be synchronized to
the transmission system; and
(VI)
Operating reserve - supplemental reserve, pursuant to which generation capacity
will be provided that is not necessarily synchronized to the transmission
system but is capable of serving demand within 10 minutes;
(6) Retail electric services, including,
without limitation:
(I) Arranging for power
supplies;
(II) End-use metering,
including, without limitation:
(ii) Operation and
maintenance of meters; and
(III)
Financial arrangements for hedging prices;
(IV) Public good services, including, without
limitation, financial, technical and other services that are performed to
further public policies related to the provision of electric service;
(V) Services which are provided behind the
meter that are provided to end-use customers relating to appliances that use
natural gas, including, without limitation, sale, hook-up, repair and
maintenance of those appliances;
(VI) Customer accounting, including, without
limitation:
(ii) Customer information and data
processing;
(iv) Collection and processing
of payments;
(VII)
Distribution services; and
(VIII)
Services related to the retail sale of gas;
(b) An identification of the current
geographic markets into which the products and services are currently being
sold and the geographic markets that the parties to the proposed transaction
have a reasonable expectation of obtaining after the completion of the proposed
transaction;
(c) An identification
of the present and future customers of the parties to the proposed transaction
that may be affected by the completion of the proposed transaction;
(d) An identification of all potential future
suppliers of the present and future customers which must be able to serve those
customers in each market, considering the physical and economic restraints on
the future suppliers in serving those customers, including, without limitation,
the amount of capacity, energy or coordination services that each supplier of
the services currently has available for delivery to the market after
adjustment for transmission capability or any other constraint;
(e) An analysis of the potential for entry by
alternative suppliers into any market that will be served by the resulting
energy utility and the role that entry into such a market by the alternative
suppliers could play in mitigating any adverse competitive effects resulting
from the completion of the proposed transaction, including, without limitation,
a qualitative and quantitative assessment of the cost for the alternative
sellers to enter the market; and
(f) A calculation, using an appropriate
methodology, of statistics relating to market concentration for each market to
be served by the resulting energy utility, such as a calculation of statistics
relating to market concentration using the Herfindahl-Hirschman
Index.
2. A description
of any action that the parties to the proposed transaction intend to take to
mitigate or remedy the effects of the market power that the resulting energy
utility would possess upon the completion of the transaction. The description
should identify each market in which the parties to the proposed transaction
would take such action, the presumed quality and degree of mitigation or
remediation, and any other alternative actions of mitigation or remediation
that have been considered by the parties to the proposed transaction.
3. Any additional information, data, analyses
and studies that consider the effect of the proposed transaction on competition
in the market for energy utilities.
Added to NAC by Pub.
Utilities Comm'n by R128-98, eff. 12-3-99
NRS 703.025,
704.210,
704.329
