Nev. Admin. Code § 704.9756 - Adoption of alternative cost-recovery methodologies; factors for consideration by Commission; accounting standards for public utility collecting gas infrastructure expansion rate; conditions and limitations on collecting such rate

1. A Commission order authorizing a gas infrastructure expansion activity must adopt alternative cost-recovery methodologies by establishing gas infrastructure expansion rates that allocate the revenue requirement among customers by balancing the interests of customers who will receive direct benefits and customers who will receive indirect benefits from the gas infrastructure expansion activity.

2. In adopting the alternative cost-recovery methodologies pursuant to subsection 1, the Commission will consider:

(a) The costs associated with the gas infrastructure expansion activity that are economically feasible, as defined in the public utility's rule for the extension of facilities;

(b) The costs that are not economically feasible, as defined in the public utility's rule for the extension of facilities;

(c) The amounts that will be recovered from customers receiving direct benefits and customers receiving indirect benefits from the gas infrastructure expansion activity;

(d) The timely and complete recovery of the revenue requirement by the public utility; and

(e) The billing determinants to be used to establish the gas infrastructure expansion rates.

3. The public utility shall account for the difference between the revenue requirement actually incurred on the cumulative investment each month in the gas infrastructure expansion costs and the revenue collected through a gas infrastructure expansion rate as a deferred cost.

4. If a public utility collects all the deferred revenue requirement through a gas infrastructure expansion rate before the expiration of the time period specified in the gas infrastructure expansion application, the gas infrastructure expansion rate will terminate. A public utility may extend a gas infrastructure expansion rate beyond the time period it is proposed to be in effect if necessary to recover any deferred revenue requirement that remains uncollected. A public utility shall notify the Commission of any termination or extension of a gas infrastructure expansion rate at least 60 days before its termination or extension. The termination or extension of a gas infrastructure expansion rate is subject to approval by the Commission.

5. The gas infrastructure expansion rates established pursuant to this section become effective with the public utility's first practicable quarterly rate adjustment following the inservice date of the gas infrastructure expansion activity.

Notes

Nev. Admin. Code § 704.9756

Added to NAC by Pub. Utilities Comm'n by R116-15, eff. 4/4/2016

Section 1 of Senate Bill No. 151, chapter 59, Statutes of Nevada 2015, at page 251.