Section 704.518 - Rates and charges: Schedule; contract for special services; customer subject to schedule or contract; establishment by utility; exemption from certain provisions1. A utility which transports natural gas may file for approval by the Commission a schedule to be applied to transportation customers served by the utility. The schedule may authorize the utility and a transportation customer to enter into a discounted rate contract. The schedule:(a) Must set forth the terms and conditions of service including, without limitation, the following terms governing any discounted rate contract between the utility and a transportation customer:(1) That the utility and transportation customer shall jointly file a discounted rate contract with the Commission at least 60 days prior to the customer taking service from the utility pursuant to the discounted rate contract;(2) That the discounted rate contract will be limited to an initial term of not more than 10 years and must not include any contract provision that permits the discounted rate contract to be renewed or otherwise extended beyond the initial term without first filing and obtaining Commission approval of a new discounted rate contract pursuant to this section and section 4;(3) That the discounted rate contract must conform to the rate design and discount terms as specified in the schedule in accordance with paragraphs (b) to (g), inclusive, of this subsection; and(4) That the discounted rate contract must include a provision that permits the Commission to assess additional charges on the transportation customer at any time during the contract term as determined in an appropriate proceeding before the Commission.(b) May include different rates for customers within the same class upon a showing to the Commission that the different rates are justified.(c) Must specify the rate design applicable to transportation customers taking service pursuant to a discounted rate contract.(d) Must explicitly state which volumetric or demand components of a transportation customer's rates are to be discounted, the criteria to determine whether a customer is eligible for the discounts and the range of discounts that may be offered to the volumetric or demand components of the rate.(e) Must not permit any discounts to the fixed components of a transportation customer's rates.(f) Must require that the discounts included in any rate provided for by a discounted rate contract are supported by the utility's most recent Commission-approved class cost of service study or other evidence sufficient to demonstrate that the transportation customer will pay at least its incremental costs of service, thereby ensuring that the discounted rates recover at least the incremental costs that the utility will incur in serving the transportation customer such that there is no net cost to other customers of the utility.(g) Must require that the discounted rate contract contain a provision for an annual inflation adjustment.2. A utility may provide service to a transportation customer pursuant to a schedule filed pursuant to subsection 1 if the customer notifies the utility in writing that the customer wishes to be billed pursuant to the schedule and the customer and the utility jointly file, in a new Commission docket, with notice provided in the new docket opened annually pursuant to section 2 of this regulation, evidence demonstrating that the customer can bypass the facilities of the utility which transports natural gas using a bona fide alternative and that bypass of the facilities of the utility is: (a) Physically feasible and imminent based upon evidence demonstrating the ability of the customer or its agent to construct physical infrastructure for natural gas service from a bona fide alternative within a reasonable amount of time;(b) Economically feasible based upon evidence demonstrating that taking service from a bona fide alternative would be more economical than taking service from the utility during the proposed contractual period, taking into account all of the costs of constructing or using physical infrastructure other than that of the utility; and(c) Operationally feasible and imminent based upon evidence demonstrating that each transportation customer or its agent is operationally capable of constructing and operating natural gas facilities. The transportation customer must provide the foregoing evidence to the utility before the utility and the transportation customer jointly file any application for approval of a discounted rate contract pursuant to section 4.
3. If a utility which seeks to transport natural gas for a transportation customer:(a) Does not have a schedule approved by the Commission on file with the Commission pursuant to subsection 1;(b) Seeks to charge a rate that is outside of the limits established by the schedule of the utility approved for transporting natural gas for a transportation customer; or(c) Seeks terms and conditions of service outside those set forth in the schedule of the utility approved for transporting natural gas for a transportation customer, the utility shall file with the Commission an application for the approval of a contract for special services between the utility and the transportation customer. A contract for special services must specify the method, terms, conditions and rates by which the services are to be rendered to the transportation customer. A utility shall not provide service to a transportation customer pursuant to a contract for special services until the contract is approved by the Commission.4. A utility may provide service to a transportation customer pursuant to a contract for special services, which shall be supported with cost estimates, studies and other documentary evidence when the contract for special services is filed with the Commission, if the customer notifies the utility in writing in a manner acceptable to the utility that the customer wishes to be billed pursuant to such a contract and the customer and the utility have demonstrated to the Commission that the customer can bypass the facilities of the utility which transports natural gas using a bona fide alternative and that bypass of the facilities of the utility is: (a) Physically feasible and imminent based upon evidence demonstrating the ability of the customer or its agent to construct physical infrastructure for natural gas service from a bona fide alternative within a reasonable amount of time;(b) Economically feasible based upon evidence demonstrating that taking service from a bona fide alternative would be more economical than taking service from the utility during the proposed contractual period, taking into account all of the costs of constructing or using physical infrastructure other than that of the utility; and(c) Operationally feasible and imminent based upon evidence demonstrating that each transportation customer or its agent is operationally capable of constructing and operating natural gas facilities. The transportation customer must provide the foregoing evidence to the utility before the utility and the transportation customer jointly file the application for approval of a contract for special services pursuant to subsection 3.
5. The rates and charges under a schedule or a contract for special services filed pursuant to this section must be established by the utility which transports natural gas after consultation with each affected customer. Nev. Admin. Code § 704.518
Added to NAC by Pub. Service Comm'n, eff. 12-15-86; A by Pub. Utilities Comm'n by R053-97, 11-14-97; R047-02, 10-24-2002; A by R075-20A, eff. 12/22/2021NRS 703.025, 704.050, 704.210