Nevada Administrative Code
Chapter 704 - Regulation of Public Utilities Generally
WATER SERVICE AND SEWAGE SERVICE
Recovery of Certain Costs by Certain Utilities
Section 704.6342 - Calculation of carrying costs, annual system improvement rate revenue requirement, authorized pretax rate of return and weighted average return

For the purpose of calculating carrying costs, unless otherwise established by the Commission in the utility's general rate case, the authorized rate of return used to calculate the annual system improvement rate revenue requirement for the utility shall be deemed to be 10.2 percent. The authorized pretax rate of return must be calculated by adjusting the weighted average return on equity, which shall be deemed to be 6 percent for federal income taxes. The weighted average return on equity must be calculated using an equity ratio which shall be deemed to be 40 percent and a return on equity which shall be deemed to be 15 percent.

Added to NAC by Pub. Utilities Comm'n by R078-14, eff. 12/22/2014

NRS 703.025, 704.210