Current through September 16, 2024
1. An application
to establish a system improvement rate must be filed not later than 90 days
after the completion of an eligible project.
2. An application filed pursuant to
subsection 1 must include:
(a) The actual
cost of the eligible project and invoices supporting the calculation of the
actual cost.
(b) The approved
budget for the eligible project provided by the Commission pursuant to NAC
704.634.
(c) A calculation of the
system improvement rate revenue requirement for each eligible project included
in the system improvement rate. The system improvement rate revenue requirement
for an eligible project must be calculated on an annual basis. The monthly
system improvement rate revenue requirement is one-twelfth of the annual system
improvement rate revenue requirement. The annual system improvement rate
revenue requirement initially must be calculated using the information
available on the last day of the month during which the eligible project is
placed in service.
(d) The proposed
system improvement rate to be collected from the customers of the utility. If
the eligible project is an improvement to a distribution system, production
system or transmission system, the proposed system improvement rate must be
based upon water consumption by each customer class during the 12-month period
ending on the last day of the month during which the eligible project was
placed in service. If the eligible project is an improvement to a wastewater
system, the proposed system improvement rate must be based upon the customer
class contribution to total revenues for the 12-month period ending on the last
day of the month during which the eligible project was placed in service.
The utility has the burden of proving the reasonableness and
prudence of the costs incurred to develop the eligible project.
3. The system
improvement rate revenue requirement calculated as part of an application must
be recalculated in any subsequent application to establish a system improvement
rate submitted pursuant to subsection 1. The system improvement rate revenue
requirement must be modified annually in the manner prescribed by NAC
704.63435.
Added to
NAC by Pub. Utilities Comm'n by
R078-14,
eff. 12/22/2014
NRS
703.025,
704.210,
704.661,
704.663
