Existing law requires each electric utility to submit to the Public Utilities Commission of Nevada every 3 years an integrated resource plan to increase the utility's supply of electricity or decrease the demands made on its system by its customers. (NRS 704.741) Sections 1 and 4 of this bill require certain electric utilities to include in such a plan a cost-sharing adjustment mechanism for the recovery of costs for purchased fuel and purchased power and the sharing of such costs between an electric utility and its customers. Section 1 also establishes certain requirements for such a cost-sharing adjustment mechanism. Section 1 requires a cost-sharing adjustment mechanism to be based on a forecasted estimate of costs for purchased fuel and purchased power which is made by the utility, and requires the utility to provide reasonable access to the forecasted estimate to: (1) the Regulatory Operations Staff of the Commission; (2) the Bureau of Consumer Protection in the Office of the Attorney General; and (3) any intervenor who signs a nondisclosure agreement, including the Office of Economic Development. Section 1 provides for the calculation of costs or savings based on the forecasted estimate and authorizes the percentage of costs or savings which are shared between the utility and its customers to be symmetrical or asymmetrical as the Commission deems necessary to incentivize the utility to manage costs effectively. Section 1 requires the utility to: (1) include in its plan the financial strategy employed by the utility to reduce risks which are associated with fluctuations in the market; and (2) propose an annual cap on the cumulative amount of cost-sharing adjustments. Existing law requires certain electric utilities to file a general rate application once every 36 months and to file certain quarterly and annual adjustments. (NRS 704.110, 704.187) Section 2 of this bill requires the quarterly and annual adjustments to take into account any cost-sharing adjustments made pursuant to section 1. Existing law requires the Commission to issue certain orders to accept or modify, or deem inadequate any portion of, the plan filed pursuant to section 4 which relates to the energy supply plan of the utility within 135 days after a utility has filed the plan. (NRS 704.751) Section 5 of this bill requires the Commission to issue such orders within 180 days after a utility has filed: (1) the plan; and (2) any update of a portion of the plan that the Commission requires. Sections 1 and 3 of this bill make section 1 applicable to certain electric utilities.

Statutes affected:
As Introduced: 704.110, 704.736, 704.741, 704.751
BDR: 704.110, 704.736, 704.741, 704.751