Current through November 25, 2024
Section 704.9494 - Approval of action plan; determination that elements of energy supply plan are prudent; recovery of costs to carry out approved plans1. The Commission will issue an order: (a) Approving the action plan of the utility as filed;(b) Modifying the action plan of the utility; or(c) If the plan is not approved as filed or modified, specifying those parts of the action plan the Commission considers inadequate.2. An action plan shall be deemed to be approved by the Commission only as to that portion of the plan accepted as filed or modified with the consent of the utility pursuant to subsection 1 of NRS 704.751.3. Approval by the Commission of an action plan constitutes a finding that the programs and projects contained in that action plan, other than the energy supply plan and distributed resources plan, are prudent, including, without limitation, construction of facilities, purchased power obligations, programs for energy efficiency and conservation and impacts of imputed debt calculations associated with renewable energy contracts or energy efficiency contracts. If the Commission subsequently determines that any information relied upon when issuing its order approving or modifying the action plan was based upon information that was known or should have been known by the utility to be untrue or false at the time the information was presented, the Commission may revoke, rescind or otherwise modify its approval of the action plan.4. If, at the time that the Commission approves the action plan of the utility, the Commission determines that the elements of the energy supply plan are prudent, the Commission will specifically include in the approval of the action plan its determination that the elements contained in the energy supply plan are prudent. For the Commission to make a determination that the elements of the energy supply plan are prudent:(a) The energy supply plan must not contain any feature or mechanism that the Commission finds would impair the restoration of the creditworthiness of the utility or would lead to a deterioration of the creditworthiness of the utility.(b) The energy supply plan must optimize the value of the overall supply portfolio for the utility for the benefit of its bundled retail customers.(c) The utility must demonstrate that the energy supply plan balances the objectives of minimizing the cost of supply, minimizing retail price volatility and maximizing the reliability of supply over the term of the plan. Failure by a utility to demonstrate that its energy supply plan is prudent in accordance with this subsection does not otherwise affect approval of the action plan, including the energy supply plan, and the utility may subsequently seek a determination that the energy supply plan is prudent in the appropriate deferred energy proceeding.
5. If, at the time that the Commission approves the action plan of the utility, the Commission determines that the elements of the distributed resources plan are prudent, the Commission will specifically include in the approval of the action plan its determination that the elements contained in the distributed resources plan are prudent. For the Commission to make a determination that the elements of the distributed resources plan are prudent:(a) The net distribution system load and distributed resource forecasts, hosting capacity analysis, grid needs assessment and non-wires alternative and locational net benefit analyses must have been prudently performed; and(b) The selections of new distributed resources set forth in the distributed resources plan must be reasonable.6. For the purposes of subsection 9 of NRS 704.746, in determining whether the proposed annual limits on the sale of energy and capacity further the public interest, the Commission will consider whether the proposed annual limits increase costs or remove benefits, including, without limitation, the benefit of a reduction of costs for electric service, from customers of the utility who are not eligible customers.7. At the time that the Commission approves the action plan of the utility, the Commission will issue a list of any current or ongoing legislatively mandated public policy programs for which eligible customers are required to pay costs, fees, charges or rates pursuant to subsection 8 of NRS 704B.310. Costs, fees, charges or rates which apply to public policy programs not determined as part of the list will be considered on a case-by-case basis.8. A utility may recover all costs that it prudently and reasonably incurs in carrying out an approved action plan in the appropriate separate rate proceeding. A utility may recover all costs it prudently and reasonably incurs in carrying out an approved distributed resources plan in an appropriate separate rate proceeding. A utility may recover all costs that are prudently and reasonably incurred in carrying out the approved energy supply plan, including deviations pursuant to subsection 1 of NAC 704.9504 approved by the Commission in the appropriate deferred energy application filed pursuant to NAC 704.023 to 704.195, inclusive.Nev. Admin. Code § 704.9494
Added to NAC by Pub. Utilities Comm'n by R004-04, eff. 5-25-2004; A by R167-05, 2-23-2006; R042-10, 7-22-2010; A by R110-15, eff. 6/28/2016; A by R195-22A, eff. 9/16/2024NRS 703.025, 704.210, 704.741, 704.746, 704B.310