Section 704.7985 - Collection of replacement rate from customers; negotiated rate customers; exemptions1. With the exception of transportation customers with contracts for special services, the replacement rate must be collected from all customers of the gas utility based upon consumption of gas by each customer class during the 12 months immediately preceding the filing of the rate application.2. A transportation customer with a contract for special services may be required to pay a rate calculated separately that represents the costs associated with replacement of a pipeline segment or segments that benefit the transportation customer. For the purpose of determining whether a transportation customer with a contract for special services will be required to pay the applicable replacement rate, a gas utility shall file with each advance application:(a) A list identifying each transportation customer with a contract for special services that would benefit from the replacement of a specific pipeline segment or segments proposed in the advance application;(b) A list identifying each transportation customer with a contract for special services that should be exempt from paying the replacement rate pursuant to a contract with that transportation customer, and any evidence or legal arguments supporting any exemption claimed pursuant to this paragraph;(c) A proposed rate for each transportation customer with a contract for special services that would benefit from replacement of a specific pipeline segment or segments proposed in the advance application;(d) For each transportation customer with a contract for special services identified pursuant to this subsection, the consumption of gas by each such transportation customer during the 3 years immediately preceding the filing of the advance application received through the specific pipeline segment or segments proposed for replacement in the advance application that benefit the transportation customer; and(e) Any other relevant evidence supporting the proposed rate to be charged to each transportation customer with a contract for special services. The rate for a transportation customer with a contract for special services identified pursuant to this subsection must be calculated based upon a rolling 3-year average consumption by the transportation customer from the specific pipeline segment or segments proposed for replacement in the gas infrastructure replacement advance application that benefit the transportation customer. The rolling 3-year average consumption will be utilized to calculate an average consumption figure and will be compared to the percentage of consumption on the same pipeline segment or segments for all remaining gas utility customers as calculated pursuant to subsection 1.
3. Unless a transportation customer with a contract for special services is determined to be exempt in a proceeding to review an advance application, the rate for a transportation customer with a contract for special services as determined pursuant to this section must be charged to the transportation customer after the gas utility has submitted a rate application that reflects the recorded costs of replacing the pipeline segment or segments that benefit the transportation customer. If the gas utility's costs as reflected in the rate application deviate by more than 10 percent from the estimates set forth in the advance application, the gas utility shall file any information necessary for the recalculation of the rate in the rate application. A party to a rate application shall not address whether a transportation customer with a contract for special services should or should not be required to pay a replacement rate.4. If the Commission determines that a transportation customer with a contract for special services is exempt from paying a replacement rate, the gas utility is not required in any subsequent advance application proceeding to address the applicability of this section to the transportation customer, unless the contract between the gas utility and the transportation customer is modified. A gas utility shall continue to identify each exempt transportation customer with a contract for special services pursuant to paragraph (b) of subsection 2, but shall state that such a transportation customer is exempt pursuant to this subsection and affirm that the contract with the transportation customer has not been modified.5. As used in this section:(a) "Contract for special services" means a contract between a gas utility and a transportation customer other than a contract that complies with an approved schedule that specifies the methods, terms, conditions and rates that are negotiated or differ from the otherwise applicable rate.(b) "Transportation customer" means a customer of a gas utility who obtains gas from a competitive third-party supplier and transports the customer-owned gas through the distribution system of the gas utility using the facilities of the gas utility.Nev. Admin. Code § 704.7985
Added to NAC by Pub. Utilities Comm'n by R020-13, eff. 2-26-2014; A by R071-21A, eff. 9/20/2022NRS 703.025, 704.050 and 704.210