Current through September 16, 2024
1. A utility may
include in an application to make changes in any schedule submitted pursuant to
NRS
704.110 a request to recover:
(a) An amount based on the anticipated
effects of implementing a plan of water conservation, including, without
limitation, the anticipated effects of decreased consumption of water by
customers of the utility as the result of the implementation of a plan for
water conservation or the charging of rates to encourage water conservation;
or
(b) The costs of providing
service without respect to the difference in the quantity of water actually
sold by the utility by taking into account the adjusted and annualized quantity
of water sold during a test year and the growth in the number of customers of
the utility.
2. A
request submitted pursuant to paragraph (a) of subsection 1 must include:
(a) The amount of the requested adjustment
identified by customer class, meter size and, if applicable, rate
tier;
(b) The requested rates and
revenue requirement with and without the requested adjustment;
(c) The 3 most recent years of monthly
consumption data by customer or, if not reasonably available, 3 years of
historical monthly consumption data by customer class;
(d) A list of specific water conservation
measures and their anticipated effects on water consumption by customer class;
(e) An estimate of
nondiscretionary water consumption by customer class;
(f) Any corresponding adjustments to the
costs of fuel or power used to pump water and the costs of chemicals used to
treat water; and
(g) If the request
includes a rate design for the purpose of encouraging water conservation:
(1) The anticipated effect of the rate design
on discretionary water consumption by each affected customer class;
and
(2) Each basis for any estimate
of price elasticity.
3. A request submitted pursuant to paragraph
(b) of subsection 1 must include:
(a) A
description of the manner in which the utility proposes to decouple the
revenues of the utility from the quantity of water sold by the utility,
including, without limitation, a description of:
(1) The proposed decoupling
methodology;
(2) The manner in
which the utility proposes to calculate the authorized revenues that will be
used in the proposed decoupling methodology described in subparagraph (1);
and
(3) The process by which the
utility proposes to report to the Commission the annual reconciliation of the
actual revenue of the utility versus the authorized revenue of the utility and
to implement the resulting change in rates;
(b) An illustration of the effect on each
customer class of the proposal to decouple revenue;
(c) A description of any necessary and
corresponding adjustments to the costs of fuel or power used to pump water and
the costs of chemicals used to treat water; and
(d) A plan for the education of customers of
the utility with respect to the proposal to decouple the revenue of the utility
from the quantity of water sold by the utility.
4. A utility may submit a request pursuant to
subsection 1 concurrently with a request for the assistance of the Regulatory
Operations Staff of the Commission submitted pursuant to NAC 704.622. If the
Commission receives such a concurrent request, the Regulatory Operations Staff
shall:
(a) For a request submitted pursuant
to paragraph (a) of subsection 1:
(1) Assist
the utility in analyzing the implementation of any water conservation measures
and rate designs to encourage water conservation and the necessity of the
requested adjustment.
(2) Include
in the draft application prepared pursuant to paragraph (b) of subsection 5 of
NAC 704.622 the information submitted pursuant to subsection 2.
(b) For a request submitted
pursuant to paragraph (b) of subsection 1:
(1) Assist the utility in identifying any
appropriate decoupling methodologies applicable to the utility.
(2) If the Regulatory Operations Staff
identifies an appropriate decoupling methodology pursuant to subparagraph (1),
include in the draft application prepared pursuant to paragraph (b) of
subsection 5 of NAC 704.622 the information submitted pursuant to paragraphs
(a), (b) and (c) of subsection 3.
5. If the Commission approves a request
submitted pursuant to:
(a) Paragraph (a) of
subsection 1:
(1) The Commission may adjust
the utility's authorized return on equity, as appropriate, based upon the
amount of the approved adjustment.
(2) The approved adjustment is effective
until the new rates of the utility go into effect as the result of the approval
of a general rate case application filed pursuant to
NRS
704.110.
(b) Paragraph (b) of subsection 1:
(1) The Commission may adjust the utility's
authorized return on equity, as appropriate, based upon the decoupling of the
revenues of the utility from the quantity of water sold by the
utility.
(2) The approved method of
decoupling is effective until the utility files its next general rate case
application pursuant to
NRS
704.110.
(3) The utility shall include a request
either to continue or discontinue the approved method of decoupling in the next
subsequent general rate case application of the utility.
6. If a request is submitted by a
utility pursuant to paragraph (a) of subsection 1, any party to the general
rate case application may propose an alternative rate design to encourage water
conservation. If a party proposes an alternative rate design pursuant to this
subsection, the party shall submit to the Commission the information required
by paragraph (g) of subsection 2. The Commission may consider any alternative
rate design proposed pursuant to this subsection for the purpose of setting
rates.
Added to
NAC by Pub. Utilities Comm'n by
R078-14,
eff. 12/22/2014
NRS
703.025,
704.110,
704.210,
704.663
