Nev. Admin. Code § 704.605

Current through November 25, 2024

Section 704.605 - Financing for additions or improvements to plant or providing cash reserve for certain repairs, maintenance or improvements: Written plan

1. An applicant for a rate surcharge must submit a written plan for the replacement or expansion of the plant and its financing, or for the provision of cash reserves, whichever is applicable, to the Commission for its consideration. The plan must be in sufficient detail to enable the Commission to determine the need for the proposed additions or improvements or for the cash reserves, whichever is applicable.

2. A written plan submitted by an applicant for a rate surcharge to finance large additions or improvements to a plant pursuant to paragraph (a) of subsection 1 of NAC 704.600 must include, but is not limited to, the following information and documents:

(a) A brief description of the proposed additions or improvements, together with the estimated cost and the source of that estimate, and an estimate of the time needed for construction and the estimated date of commencement and date of completion of the construction;

(b) A list of the proposed projects in order of priority, which contains the reasons for the priorities;

(c) The need for the proposed additions or improvements;

(d) The size, in terms of capital requirements, of the additions or improvements;

(e) Any letter of credit, loan commitment or other evidence that funding is or is not available to the applicant; and

(f) The availability of other methods of financing.

3. A written plan submitted by an applicant for a rate surcharge to provide a cash reserve for the purposes set forth in paragraph (b) of subsection 1 of NAC 704.600 must include, but is not limited to, the following information and documentation:

(a) Documentation that the applicant does not exceed the customer and gross sales limitations set forth in NRS 704.095;

(b) Documentation that the applicant does not have access to other sources of funding at reasonable terms and conditions, other than the cash reserve;

(c) The appropriate amount in the cash reserve account;

(d) The calculation of the rate surcharge necessary to provide the appropriate amount in the cash reserve account; and

(e) The manner in which money will be refunded to ratepayers if the cash reserve account exceeds the appropriate amount.

Nev. Admin. Code § 704.605

Pub. Service Comm'n, Gen. Order 26 § 9, eff. 8-6-80-NAC A by Pub. Utilities Comm'n by R079-99, 11-16-99; R178-12, 2-26-2014

NRS 703.025, 704.095, 704.210, 704.663