USA Statutes : nevada
Title : Title 58 - ENERGY; PUBLIC UTILITIES AND SIMILAR ENTITIES
Chapter : CHAPTER 704B - PROVIDERS OF NEW ELECTRIC RESOURCES
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 704B.020
to 704B.140 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 2001, 3223 ; A 2003, 1260 )
“Ancillary services”
means those generation services that:
1. Are necessary to support the transmission of energy and
capacity from resources to loads while maintaining reliable operation of
the transmission system of the electric utility; and
2. Are defined and established in applicable transmission tariffs
on file with the Federal Energy Regulatory Commission.
(Added to NRS by 2001, 3223 )
“Calendar quarter” means
each period of 3 consecutive calendar months ending on March 31, June 30,
September 30 and December 31 in each calendar year.
(Added to NRS by 2001, 3223 )
“Commission” means the Public
Utilities Commission of Nevada.
(Added to NRS by 2001, 3223 )
“Consumer’s Advocate”
means the Consumer’s Advocate of the Bureau of Consumer Protection in the
Office of the Attorney General.
(Added to NRS by 2003, 1260 )
1. “Electric utility” means any public utility or successor in
interest that:
(a) Is in the business of providing electric service to customers;
(b) Holds a certificate of public convenience and necessity issued
or transferred pursuant to chapter 704 of
NRS; and
(c) In the most recently completed calendar year or in any other
calendar year within the 7 calendar years immediately preceding the most
recently completed calendar year, had a gross operating revenue of
$250,000,000 or more in this state.
2. The term does not include a cooperative association, nonprofit
corporation, nonprofit association or provider of electric service which
is declared to be a public utility pursuant to NRS 704.673 and which provides service only to its members.
(Added to NRS by 2001, 3223 )
“Electric utility that primarily serves
densely populated counties” means an electric utility that, with regard
to the provision of electric service, derives more of its annual gross
operating revenue in this state from customers located in counties whose
population is 400,000 or more than it does from customers located in
counties whose population is less than 400,000.
(Added to NRS by 2001, 3224 )
“Electric utility that primarily serves
less densely populated counties” means an electric utility that, with
regard to the provision of electric service, derives more of its annual
gross operating revenue in this state from customers located in counties
whose population is less than 400,000 than it does from customers located
in counties whose population is 400,000 or more.
(Added to NRS 2001, 3224 )
“Eligible customer”
means an end-use customer which is:
1. A nongovernmental commercial or industrial end-use customer
that has an average annual load of 1 megawatt or more in the service
territory of an electric utility.
2. A governmental entity, including, without limitation, a
governmental entity providing educational or health care services, that:
(a) Performs its functions using one or more facilities which are
operated under a common budget and common control; and
(b) Has an average annual load of 1 megawatt or more in the service
territory of an electric utility.
(Added to NRS by 2001, 3224 )
“Energy” means electrical energy.
(Added to NRS by 2001, 3224 )
“Generation asset” means
any plant, facility, equipment or system which is located within or
outside this state and which converts nonelectrical energy into
electrical energy or otherwise produces electrical energy.
(Added to NRS by NRS 2001, 3224 )
“New electric
resource” means:
1. The energy, capacity or ancillary services and any increased or
additional energy, capacity or ancillary services which are:
(a) Made available from a generation asset that is not owned by an
electric utility or is not subject to contractual commitments to an
electric utility that make the energy, capacity or ancillary services
from the generation asset unavailable for purchase by an eligible
customer; and
(b) Able to be delivered to an eligible customer.
2. Any increased energy, capacity or ancillary services made
available from a generation asset pursuant to an agreement described in
NRS 704B.260 .
(Added to NRS by 2001, 3224 )
“Person” means:
1. A natural person.
2. Any form of business or social organization and any other
nongovernmental legal entity, including, without limitation, a
corporation, partnership, association, trust or unincorporated
organization.
3. A governmental entity other than:
(a) This state or an agency or instrumentality of this state; or
(b) A political subdivision of this state or an agency or
instrumentality of a political subdivision of this state.
(Added to NRS by 2001, 3224 )
“Provider of new electric resources” and “provider” mean a
person who makes energy, capacity or ancillary services from a new
electric resource available to an eligible customer.
(Added to NRS by 2001, 3224 )
“Time-of-use meter”
means a meter that:
1. Measures and records the electric demand, energy and power
factor on 15-minute intervals; and
2. Is suitable for use with an electric demand of 1 megawatt or
more.
(Added to NRS by 2001, 3225 )
APPLICABILITY
1. The provisions of this chapter do not alter, diminish or
otherwise affect any rights or obligations arising under any contract
which requires an electric utility to purchase energy, capacity or
ancillary services from another party and which exists on July 17, 2001.
2. Each electric utility or its assignee shall comply with the
terms of any contract which requires the electric utility or its assignee
to purchase energy, capacity or ancillary services from another party and
which exists on July 17, 2001.
(Added to NRS by 2001, 3225 )
GENERAL POWERS AND DUTIES OF COMMISSION
The Commission shall adopt regulations
to carry out and enforce the provisions of this chapter.
(Added to NRS by 2001, 3230 )
Not
later than 30 days after the end of each calendar quarter, the Commission
shall submit to the Legislative Commission a written report which
summarizes for that calendar quarter:
1. Each application which was filed with the Commission pursuant
to the provisions of this chapter and which requested approval of a
proposed transaction between an eligible customer and a provider of new
electric resources;
2. The information that the eligible customer included with the
application;
3. The findings of the Commission concerning the effect of the
proposed transaction on the public interest; and
4. Whether the Commission approved the application and, if so, the
effective date of the proposed transaction, the terms and conditions of
the proposed transaction, and the terms, conditions and payments ordered
by the Commission.
(Added to NRS by 2001, 3230 )
DEVELOPMENT OF NEW ELECTRIC RESOURCES
1. Except as otherwise provided in this section, an electric
utility may, at its discretion, enter into agreements relating to its
generation assets and the energy, capacity or ancillary services provided
by its generation assets with one or more other persons who are not
electric utilities. Such agreements, without limitation:
(a) May include agreements to construct or install a new generation
asset on real property that is adjacent to an existing generation asset
owned by the electric utility; and
(b) May provide for the sharing of available common facilities with
the existing generation asset or the reengineering, repowering or
expansion of the existing generation asset to generate energy more
efficiently and at a lower cost and to make more energy available to
customers in this state.
2. Any increased energy, capacity or ancillary services made
available from a new generation asset or an existing generation asset
pursuant to an agreement described in subsection 1 shall be deemed to be
a new electric resource that may be:
(a) Owned by the parties to the agreement who are not electric
utilities; and
(b) Used or consumed by such parties for their own purposes, sold
at wholesale by such parties or sold by such parties to one or more
eligible customers pursuant to the provisions of this chapter.
3. A transaction undertaken pursuant to an agreement described in
subsection 1:
(a) Must not impair system reliability or the ability of the
electric utility to provide electric service to its customers; and
(b) Must not violate the provisions of NRS 704.7561 to 704.7595 , inclusive.
4. The provisions of this section do not exempt any party to an
agreement described in subsection 1 from any applicable statutory or
regulatory requirements relating to siting, construction and operation of
a generation asset.
5. The Commission shall encourage the development of new electric
resources and shall not exercise its regulatory authority in a manner
that unnecessarily or unreasonably restricts, conditions or discourages
any agreement described in subsection 1 that is likely to result in
increased energy, capacity or ancillary services from a generation asset
or improved or more efficient operation or management of a generation
asset.
(Added to NRS by 2001, 3225 )
TRANSACTIONS WITH ELIGIBLE CUSTOMERS
1. Except as otherwise provided in this section, a provider of new
electric resources may sell energy, capacity or ancillary services to one
or more eligible customers if:
(a) The eligible customers have been approved to purchase energy,
capacity and ancillary services from the provider pursuant to the
provisions of NRS 704B.310 and
704B.320 ; or
(b) The transaction complies with the provisions of NRS 704B.325
.
2. A provider of new electric resources shall not sell energy,
capacity or ancillary services to an eligible customer if the transaction
violates the provisions of this chapter.
3. A provider of new electric resources that sells energy,
capacity or ancillary services to an eligible customer pursuant to the
provisions of this chapter:
(a) Does not become and shall not be deemed to be a public utility
solely because of that transaction; and
(b) Does not become and shall not be deemed to be subject to the
jurisdiction of the Commission except as otherwise provided in this
chapter or by specific statute.
4. If a provider of new electric resources is not a public utility
in this state and is not otherwise authorized by the provisions of a
specific statute to sell energy, capacity or ancillary services at retail
in this state, the provider shall not sell energy, capacity or ancillary
services at retail in this state to a person or entity that is not an
eligible customer.
(Added to NRS by 2001, 3226 ; A 2003, 1260 )
1. An eligible customer that is purchasing bundled electric
service for all or any part of its load from an electric utility shall
not purchase energy, capacity or ancillary services from a provider of
new electric resources unless:
(a) The eligible customer files an application with the Commission
not later than 180 days before the date on which the eligible customer
intends to begin purchasing energy, capacity or ancillary services from
the provider, except that the Commission may allow the eligible customer
to file the application within any shorter period that the Commission
deems appropriate; and
(b) The Commission approves the application by a written order
issued in accordance with the provisions of this section and NRS 704B.320
.
2. Except as otherwise provided in subsection 3, each application
filed pursuant to this section must include:
(a) Information demonstrating that the person filing the
application is an eligible customer;
(b) Information demonstrating that the proposed provider will
provide energy, capacity or ancillary services from a new electric
resource;
(c) Information concerning the terms and conditions of the proposed
transaction that is necessary for the Commission to evaluate the impact
of the proposed transaction on customers and the public interest,
including, without limitation, information concerning the duration of the
proposed transaction and the amount of energy, capacity or ancillary
services to be purchased from the provider; and
(d) Any other information required pursuant to the regulations
adopted by the Commission.
3. Except as otherwise provided in NRS 704B.320 , the Commission shall not require the
eligible customer or provider to disclose:
(a) The price that is being paid by the eligible customer to
purchase energy, capacity or ancillary services from the provider; or
(b) Any other terms or conditions of the proposed transaction that
the Commission determines are commercially sensitive.
4. The Commission shall provide public notice of the application
of the eligible customer and an opportunity for a hearing on the
application in a manner that is consistent with the provisions of NRS
703.320 and the regulations adopted by
the Commission.
5. The Commission shall approve the application of the eligible
customer unless the Commission finds that the proposed transaction:
(a) Will be contrary to the public interest; or
(b) Does not comply with the provisions of NRS 704B.320 , if those provisions apply to the proposed
transaction.
6. In determining whether the proposed transaction will be
contrary to the public interest, the Commission shall consider, without
limitation:
(a) Whether the electric utility that has been providing electric
service to the eligible customer will be burdened by increased costs as a
result of the proposed transaction or whether any remaining customer of
the electric utility will pay increased costs for electric service as a
result of the proposed transaction;
(b) Whether the proposed transaction will impair system reliability
or the ability of the electric utility to provide electric service to its
remaining customers; and
(c) Whether the proposed transaction will add energy, capacity or
ancillary services to the supply in this State.
7. If the Commission approves the application of the eligible
customer:
(a) The eligible customer shall not begin purchasing energy,
capacity or ancillary services from the provider pursuant to the proposed
transaction sooner than 180 days after the date on which the application
was filed, unless the Commission allows the eligible customer to begin
purchasing energy, capacity or ancillary services from the provider at an
earlier date; and
(b) The Commission shall order such terms, conditions and payments
as the Commission deems necessary and appropriate to ensure that the
proposed transaction will not be contrary to the public interest. Such
terms, conditions and payments:
(1) Must be fair and nondiscriminatory as between the
eligible customer and the remaining customers of the electric utility; and
(2) Must include, without limitation:
(I) Payment by the eligible customer to the electric
utility of the eligible customer’s load-share portion of any unrecovered
balance in the deferred accounts of the electric utility; and
(II) Payment by the eligible customer of the annual
assessment and any other tax, fee or assessment required by NRS 704B.360
.
8. If the Commission does not enter a final order on the
application of the eligible customer within 150 days after the date on
which the application was filed with the Commission:
(a) The application shall be deemed to be approved by the
Commission; and
(b) The eligible customer may begin purchasing energy, capacity or
ancillary services from the provider pursuant to the proposed transaction.
(Added to NRS by 2001, 3226 ; A 2003, 1261 , 3031 )
1. For eligible customers whose loads are in the service territory
of an electric utility that primarily serves densely populated counties,
the aggregate amount of energy that all such eligible customers purchase
from providers of new electric resources before July 1, 2003, must not
exceed 50 percent of the difference between the existing supply of energy
generated in this State that is available to the electric utility and the
existing demand for energy in this State that is consumed by the
customers of the electric utility, as determined by the Commission.
2. An eligible customer that is a nongovernmental commercial or
industrial end-use customer whose load is in the service territory of an
electric utility that primarily serves densely populated counties shall
not purchase energy, capacity or ancillary services from a provider of
new electric resources unless, as part of the proposed transaction, the
eligible customer agrees to:
(a) Contract with the provider to purchase:
(1) An additional amount of energy which is equal to 10
percent of the total amount of energy that the eligible customer is
purchasing for its own use under the proposed transaction and which is
purchased at the same price, terms and conditions as the energy purchased
by the eligible customer for its own use; and
(2) The capacity and ancillary services associated with the
additional amount of energy at the same price, terms and conditions as
the capacity and ancillary services purchased by the eligible customer
for its own use; and
(b) Offers to assign the rights to the contract to the electric
utility for use by the remaining customers of the electric utility.
3. If an eligible customer is subject to the provisions of
subsection 2, the eligible customer shall include with its application
filed pursuant to NRS 704B.310 all
information concerning the contract offered to the electric utility that
is necessary for the Commission to determine whether it is in the best
interest of the remaining customers of the electric utility for the
electric utility to accept the rights to the contract. Such information
must include, without limitation, the amount of the energy and capacity
to be purchased under the contract, the price of the energy, capacity and
ancillary services and the duration of the contract.
4. Notwithstanding any specific statute to the contrary,
information concerning the price of the energy, capacity and ancillary
services and any other terms or conditions of the contract that the
Commission determines are commercially sensitive:
(a) Must not be disclosed by the Commission except to the
Regulatory Operations Staff of the Commission, the Consumer’s Advocate
and his staff and the electric utility for the purposes of carrying out
the provisions of this section; and
(b) Shall be deemed to be confidential for all other purposes, and
the Commission shall take such actions as are necessary to protect the
confidentiality of such information.
5. If the Commission determines that the contract:
(a) Is not in the best interest of the remaining customers of the
electric utility, the electric utility shall not accept the rights to the
contract, and the eligible customer is entitled to all rights to the
contract.
(b) Is in the best interest of the remaining customers of the
electric utility, the electric utility shall accept the rights to the
contract and the eligible customer shall assign all rights to the
contract to the electric utility. A contract that is assigned to the
electric utility pursuant to this paragraph shall be deemed to be an
approved part of the resource plan of the electric utility and a prudent
investment, and the electric utility may recover all costs for the
energy, capacity and ancillary services acquired pursuant to the
contract. To the extent practicable, the Commission shall take actions to
ensure that the electric utility uses the energy, capacity and ancillary
services acquired pursuant to each such contract only for the benefit of
the remaining customers of the electric utility that are not eligible
customers, with a preference for the remaining customers of the electric
utility that are residential customers with small loads.
6. The provisions of this section do not exempt the electric
utility, in whole or in part, from the requirements imposed on the
electric utility pursuant to NRS 704.7801 to 704.7828 , inclusive, to comply with its portfolio
standard. The Commission shall not take any actions pursuant to this
section that conflict with or diminish those requirements.
(Added to NRS by 2001, 3228 ; A 2003, 1263 , 1877 ; 2005, 22nd Special Session, 86 )
1. An eligible customer that is purchasing energy, capacity or
ancillary services from a provider of new electric resources may purchase
energy, capacity or ancillary services from an alternative provider
without obtaining the approval of the Commission if the terms and
conditions of the transaction with the alternative provider, other than
the price of the energy, capacity or ancillary services, conform to the
terms and conditions of the transaction that was originally approved by
the Commission with respect to the eligible customer.
2. If any terms and conditions of the transaction with the
alternative provider, other than the price of the energy, capacity or
ancillary services, do not conform to the terms and conditions of the
transaction that was originally approved by the Commission with respect
to the eligible customer, the eligible customer must obtain approval from
the Commission before those nonconforming terms and conditions are
enforceable.
3. If the eligible customer files a request with the Commission
for approval of any nonconforming terms and conditions, the Commission
shall review and make a determination concerning the request on an
expedited basis.
4. Notwithstanding any specific statute to the contrary,
information concerning any terms and conditions of the transaction with
the alternative provider that the Commission determines are commercially
sensitive:
(a) Must not be disclosed by the Commission except to the
Regulatory Operations Staff of the Commission, the Consumer’s Advocate
and his staff and the affected electric utility for the purposes of
carrying out the provisions of this section; and
(b) Shall be deemed to be confidential for all other purposes, and
the Commission shall take such actions as are necessary to protect the
confidentiality of such information.
(Added to NRS by 2003, 1260 )
1. If an eligible customer is purchasing energy, capacity or
ancillary services from a provider of new electric resources, the
eligible customer may, pursuant to tariffs approved by the Commission,
replace some or all, but not less than all at a single time-of-use meter,
of the energy, capacity or ancillary services purchased from the provider
of new electric resources with energy, capacity or ancillary services
purchased from an electric utility.
2. The tariffs approved by the Commission pursuant to this section
must include, without limitation:
(a) Provisions requiring the eligible customer to pay any
incremental costs that are incurred by the electric utility to provide
energy to the eligible customer;
(b) Provisions requiring the eligible customer to provide
reasonable and adequate notice to the electric utility;
(c) Provisions establishing minimum terms during which the eligible
customer must continue to purchase energy from the electric utility; and
(d) Any other provisions that the Commission determines are
necessary and reasonable to carry out and enforce the provisions of this
section.
(Added to NRS by 2001, 3229 )
1. A provider of new electric resources shall not sell energy,
capacity or ancillary services to an eligible customer unless the
customer has a time-of-use meter installed at the point of delivery of
energy to the eligible customer.
2. An electric utility shall install a time-of-use meter at each
point of delivery of energy to the eligible customer if the eligible
customer does not have a time-of-use meter at that point of delivery. If
the eligible customer is:
(a) A nongovernmental commercial or industrial end-use customer,
the eligible customer or the provider shall pay all costs for the
time-of-use meter and for installation of the time-of-use meter by the
electric utility.
(b) A governmental entity, the provider shall pay all costs for the
time-of-use meter and for installation of the time-of-use meter by the
electric utility.
3. Not more than one person or entity may sell the energy that is
delivered to an eligible customer through any one time-of-use meter.
4. The provisions of this section do not prohibit:
(a) An eligible customer from having more than one time-of-use
meter installed for the same service location; or
(b) An eligible customer from installing any other meter or
equipment that is necessary or appropriate to the transaction with the
provider, if such a meter or equipment is otherwise consistent with
system reliability.
(Added to NRS by 2001, 3229 )
1. An electric utility shall provide all transmission,
distribution, metering and other components of electric service that are
necessary for a provider of new electric resources to sell energy,
capacity and ancillary services to an eligible customer pursuant to the
provisions of this chapter. An electric utility shall provide each such
component of electric service pursuant to the tariffs and service
agreements filed with and approved by the appropriate regulatory
authorities having jurisdiction over each such component of electric
service.
2. For each such component of electric service that is within the
jurisdiction of the Commission, the Commission shall establish just,
reasonable and nondiscriminatory rates.
3. The provisions of this chapter do not enlarge or expand any
existing rights under federal law or create any other rights with regard
to the transmission system of the electric utility.
4. When providing service pursuant to this chapter, an electric
utility is subject to all applicable statutes and regulations of this
State and the United States.
(Added to NRS by 2001, 3230 )
1. If the Commission approves an application that is filed
pursuant to NRS 704B.310 or a request
that is filed pursuant to NRS 704B.325 , the Commission shall order the eligible
customer to:
(a) Pay its share of the annual assessment levied pursuant to NRS
704.033 to the Commission and the
Bureau of Consumer Protection in the Office of the Attorney General;
(b) Pay any other tax, fee or assessment that would be due a
governmental entity had the eligible customer continued to purchase
energy, capacity or ancillary services from the electric utility; and
(c) Remit any tax, fee or assessment collected pursuant to
paragraph (b) to the applicable governmental entity.
2. Each person or entity that is responsible for billing an
eligible customer shall ensure that the amount which the eligible
customer must pay pursuant to paragraph (b) of subsection 1 is set forth
as a separate item or entry on each bill submitted to the eligible
customer.
3. If an eligible customer to whom an order is issued pursuant to
subsection 1 thereafter purchases energy, capacity or ancillary services
from an alternative provider pursuant to NRS 704B.325 without obtaining the approval of the
Commission, the order issued pursuant to subsection 1 continues to apply
to the eligible customer.
4. Upon petition by a governmental entity to which a tax, fee or
assessment must be remitted pursuant to this section, the Commission may
limit, suspend or revoke any order issued to an eligible customer by the
Commission pursuant to NRS 704B.310
and 704B.320 if the Commission, after
providing an appropriate notice and hearing, determines that the eligible
customer has failed to pay the tax, fee or assessment.
(Added to NRS by 2003, 3031 )
