Section 704.9716 - Use of general revenue decoupling methodology in lieu of equity adder methodology1. To remove financial disincentives that discourage a public utility which purchases natural gas for resale from planning and implementing substantive conservation and energy efficiency programs, a gas utility not electing to recover program costs using an equity adder methodology may seek approval from the Commission to decouple general revenue. A gas utility seeking approval from the Commission to decouple general revenue must file a request to decouple general revenue with the Commission as part of a general rate application filed pursuant to NRS 704.110. A gas utility electing to decouple general revenue must recover the costs of its substantive conservation and energy efficiency programs pursuant to subsection 5 of NAC 704.9714. If the gas utility files a request to decouple general revenue, the gas utility's application must include a discussion identifying any change in risk for the gas utility and a calculation to adjust for the change in risk and demonstrate the impact on the current and requested rate design for the gas utility. If the Commission approves a gas utility's request to decouple general revenue, the gas utility is not required to include a discussion identifying any change in risk associated with the approved general revenue decoupling methodology in its subsequent general rate application filed pursuant to NRS 704.110 but in determining the gas utility's return on equity, the Commission may consider evidence concerning any change in risk associated with the approved general revenue decoupling methodology provided in the general rate application.2. As part of a gas utility's general rate case application seeking approval from the Commission to decouple general revenue, the gas utility must outline its plan to educate customers about general revenue decoupling.3. In considering a request to decouple general revenue, the Commission will seek to harmonize the incentives of general revenue decoupling methodology with the rate design of the gas utility filing the request. Harmonization by the Commission will include, without limitation, the use of the information contained in the approved conservation and energy efficiency plan to modify the customer class billing determinants used to establish the base tariff general rate in the general rate application filed pursuant to NRS 704.110 that includes the request to decouple general revenue. In the initial general rate application requesting approval to decouple general rate revenues and each subsequent general rate application for which the gas utility continues to use the general revenue decoupling methodology, the gas utility must request approval to exempt any customer class from the general revenue decoupling methodology. The gas utility must apply the approved general revenue decoupling methodology to all customer classes not specifically exempted by the Commission.4. To file a request to decouple general revenue, a gas utility must have an order of the Commission accepting the conservation and energy efficiency plan, with the acceptance occurring not more than 1 year before the gas utility files the request to decouple general revenue. Execution of the conservation and energy efficiency plan will be deferred until the general revenue decoupling methodology is implemented.5. A gas utility's request to discontinue the approved general revenue decoupling methodology must be included in a general rate application filed pursuant to NRS 704.110.Nev. Admin. Code § 704.9716
Added to NAC by Pub. Utilities Comm'n by R067-09, eff. 11-25-2009; A by R003-14, eff. 10/24/2014NRS 703.025, 704.210, 704.992