Section 704.218 - Calculation of revenues and expenses related to allowable variable interest expense or dividends1. A utility which plans to seek recovery of variable interest expense or dividends shall calculate revenues and expenses related to allowable variable interest expense or dividends as follows: (a) The currently recoverable variable interest expense or dividends must be calculated each month by multiplying the last authorized rate base by one-twelfth of the last authorized weighted average variable interest or dividend rate.(b) The difference between the currently recoverable expense and the current month's weighted average variable rate multiplied by the last authorized rate base must be recorded in a subaccount of FERC Account No. 182.3 or 254, whichever is applicable, with the offsetting amount recorded in FERC Account No. 407.3 or 407.4, whichever is applicable. The current month's weighted average variable rate is the current rate for all outstanding variable rate securities issued by the utility and included in the Nevada jurisdictional capital structure, as approved in the last general rate case or other proceeding.(c) Whenever a new weighted average variable interest or dividend rate is authorized, revenues must be increased or decreased annually to match changes in allowable interest expense or dividends by adjusting the base tariff general rate based on the following formula: 1BTGR(new) = 1BTGR(prior) ± 1BTGR
2. As used in this section: (a) "1BTGR" means the net change in the base tariff general rate resulting from changes in the weighted average variable interest or dividend rate, calculated pursuant to subsection 3 of NAC 704.217.(b) "1BTGR(new)" means the base tariff general rate established in the current proceeding.(c) "1BTGR(prior)" means the base tariff general rate established in the last general rate case or other proceeding.Nev. Admin. Code § 704.218
Added to NAC by Pub. Service Comm'n, eff. 3-3-92; A by Pub. Utilities Comm'n by R051-09, 1-28-2010NRS 703.025, 704.210, 704.324