Current through December 12, 2024
1. As part of the proposal required by
subsection 6 of NRS
704.741, the electric utility shall include
the calculations set forth in this section, which shall be used to determine
the charges to be paid by an eligible customer over the course of the
transition period as provided by section 12. If the transition period is
extended, as provided by subsection 4 of section 12, the time period for the
calculations required by this section must be extended accordingly.
2. The electric utility shall use its
production cost modeling software to perform two sets of production cost
simulations for a 3-year period, which coincides with the 3-year period of the
action plan, as follows:
(a) The first
production cost simulation will be known as the base case expansion plan and
must be conducted by:
(1) Using the electric
utility's load, fuel and purchase power forecasts from the electric utility's
preferred plan, including the proposed amount of energy and capacity that
eligible customers may be authorized to purchase from providers of new electric
resources pursuant to subsection 6 of
NRS
704.741; and
(2) Excluding all energy and capacity needs
associated with the placeholder resources, which are generating facilities that
have not yet been identified, proposed or approved as a part of the electric
utility's resource plan, and assuming all energy and capacity needs are
fulfilled with market purchases at the prices contained in the fuel and
purchase power forecasts.
(b) The second production cost simulation
will be known as the change case plan and must be conducted by:
(1) Using the electric utility's load, fuel
and purchase power forecasts from the electric utility's preferred plan, but
not including the proposed amount of energy and capacity that eligible
customers may be authorized to purchase from providers of new electric
resources pursuant to subsection 6 of
NRS
704.741;
(2) Using January 1 of the second year of the
applicable 3-year action plan period as the departure date for the analyses;
and
(3) Performing the production
cost simulations with external non-firm power sales omitted.
3. The electric utility
shall calculate the net differential energy rate, which must be held fixed for
the duration of any transition period initiated pursuant to an application
filed pursuant to NRS 704B.310 during the
applicable action plan period. To calculate the net differential energy rate,
the electric utility shall:
(a) Use the
system cost difference between the base case expansion plan and the change case
plan to determine the impact to the base tariff energy rate.
(b) After the base tariff energy rate system
impact is calculated, calculate the portion of the base tariff energy rate
system impact associated with the current and ongoing legislatively mandated
public policy programs that affect the base tariff energy rate, which include,
without limitation:
(1) The out-of-money
portion of the costs of long-term renewable energy contracts. To calculate such
costs, the electric utility shall identify in its resource plan filed pursuant
to NRS
704.741, for the Commission to determine, the
long-term renewable energy contracts that contain out-of-money costs. The
out-of-money costs are calculated by substituting the electric utility's
projected average monthly system costs for the contractual prices of each of
the out-of-money long-term renewable energy contracts, multiplying these
projected average monthly system costs by the projected generation of the
underlying renewable resources, and subtracting that cost from the projected
costs of the renewable energy contracts.
(2) The non-bypassable costs attributable to
any other public policies that are applicable to eligible customers.
(c) Subtract the portion of the
Proposed Action Plan R-BTER costs and other non-bypassable costs attributable
to other public policies attributable to the annual limits from the base tariff
energy rate system impact cost to determine the net differential energy rate
cost.
(d) Divide the net
differential energy rate cost by the energy consumption in kilowatt-hours
attributed to the annual limits in the production costs modeling to derive the
net differential energy rate.
4. To calculate the impact to the base tariff
general rate, determine the net impact to the variable operations and
maintenance costs attributable to eligible customers by using the difference in
variable operations and maintenance costs between the base case expansion plan
and change case plan.
5. As used in
this section:
(a) "Proposed Action Plan
R-BTER" means the out-of-money portion of the costs of long-term renewable
energy contracts calculated for the production cost simulation
period.
(b) "Transition period"
means a 3-year period commencing on the date on which the eligible customer
begins to take service from a provider of new electric resources.
Added
to NAC by Pub. Utilities Comm'n by
R195-22A,
eff. 9/16/2024
NRS
703.025,
704.210,
704.741
