Nev. Admin. Code § 704.63385

Current through November 25, 2024

Section 704.63385 - Request for recovery of certain amounts and costs; requirements; concurrent submission with request for assistance of Regulatory Operations Staff; approval; alternative rate design

1. A utility may include in an application to make changes in any schedule submitted pursuant to NRS 704.110 a request to recover:

(a) An amount based on the anticipated effects of implementing a plan of water conservation, including, without limitation, the anticipated effects of decreased consumption of water by customers of the utility as the result of the implementation of a plan for water conservation or the charging of rates to encourage water conservation; or

(b) The costs of providing service without respect to the difference in the quantity of water actually sold by the utility by taking into account the adjusted and annualized quantity of water sold during a test year and the growth in the number of customers of the utility.

2. A request submitted pursuant to paragraph (a) of subsection 1 must include:

(a) The amount of the requested adjustment identified by customer class, meter size and, if applicable, rate tier;

(b) The requested rates and revenue requirement with and without the requested adjustment;

(c) The 3 most recent years of monthly consumption data by customer or, if not reasonably available, 3 years of historical monthly consumption data by customer class;

(d) A list of specific water conservation measures and their anticipated effects on water consumption by customer class;

(e) An estimate of nondiscretionary water consumption by customer class;

(f) Any corresponding adjustments to the costs of fuel or power used to pump water and the costs of chemicals used to treat water; and

(g) If the request includes a rate design for the purpose of encouraging water conservation:

(1) The anticipated effect of the rate design on discretionary water consumption by each affected customer class; and

(2) Each basis for any estimate of price elasticity.

3. A request submitted pursuant to paragraph (b) of subsection 1 must include:

(a) A description of the manner in which the utility proposes to decouple the revenues of the utility from the quantity of water sold by the utility, including, without limitation, a description of:

(1) The proposed decoupling methodology;

(2) The manner in which the utility proposes to calculate the authorized revenues that will be used in the proposed decoupling methodology described in subparagraph (1); and

(3) The process by which the utility proposes to report to the Commission the annual reconciliation of the actual revenue of the utility versus the authorized revenue of the utility and to implement the resulting change in rates;

(b) An illustration of the effect on each customer class of the proposal to decouple revenue;

(c) A description of any necessary and corresponding adjustments to the costs of fuel or power used to pump water and the costs of chemicals used to treat water; and

(d) A plan for the education of customers of the utility with respect to the proposal to decouple the revenue of the utility from the quantity of water sold by the utility.

4. A utility may submit a request pursuant to subsection 1 concurrently with a request for the assistance of the Regulatory Operations Staff of the Commission submitted pursuant to NAC 704.622. If the Commission receives such a concurrent request, the Regulatory Operations Staff shall:

(a) For a request submitted pursuant to paragraph (a) of subsection 1:

(1) Assist the utility in analyzing the implementation of any water conservation measures and rate designs to encourage water conservation and the necessity of the requested adjustment.

(2) Include in the draft application prepared pursuant to paragraph (b) of subsection 5 of NAC 704.622 the information submitted pursuant to subsection 2.

(b) For a request submitted pursuant to paragraph (b) of subsection 1:

(1) Assist the utility in identifying any appropriate decoupling methodologies applicable to the utility.

(2) If the Regulatory Operations Staff identifies an appropriate decoupling methodology pursuant to subparagraph (1), include in the draft application prepared pursuant to paragraph (b) of subsection 5 of NAC 704.622 the information submitted pursuant to paragraphs (a), (b) and (c) of subsection 3.

5. If the Commission approves a request submitted pursuant to:

(a) Paragraph (a) of subsection 1:

(1) The Commission may adjust the utility's authorized return on equity, as appropriate, based upon the amount of the approved adjustment.

(2) The approved adjustment is effective until the new rates of the utility go into effect as the result of the approval of a general rate case application filed pursuant to NRS 704.110.

(b) Paragraph (b) of subsection 1:

(1) The Commission may adjust the utility's authorized return on equity, as appropriate, based upon the decoupling of the revenues of the utility from the quantity of water sold by the utility.

(2) The approved method of decoupling is effective until the utility files its next general rate case application pursuant to NRS 704.110.

(3) The utility shall include a request either to continue or discontinue the approved method of decoupling in the next subsequent general rate case application of the utility.

6. If a request is submitted by a utility pursuant to paragraph (a) of subsection 1, any party to the general rate case application may propose an alternative rate design to encourage water conservation. If a party proposes an alternative rate design pursuant to this subsection, the party shall submit to the Commission the information required by paragraph (g) of subsection 2. The Commission may consider any alternative rate design proposed pursuant to this subsection for the purpose of setting rates.

Nev. Admin. Code § 704.63385

Added to NAC by Pub. Utilities Comm'n by R078-14, eff. 12/22/2014

NRS 703.025, 704.110, 704.210, 704.663