All Roll Calls
Yes: 57 • No: 6
NevadaSB41783rd Regular Session (2025)Senate
AN ACT relating to public utilities; requiring the Public Utilities Commission of Nevada to adopt regulations governing the filing of an application for the establishment of an alternative rate-making plan by a natural gas utility; setting forth certain requirements for the submission and approval of such an alternative rate-making plan; revising certain provisions relating to the application and approval for an alternative rate-making plan by an electric utility; and providing other matters properly relating thereto.
Sponsored By: Senate Committee on Growth and Infrastructure
Signed by Governor
BDR 58-1106
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 2 benefits, 0 costs, 5 mixed.
Stronger guardrails on utility rate plans
The Public Utilities Commission may only approve an alternative rate plan if it is in the public interest, sets just and reasonable rates, protects customers, states how long it lasts, and includes a customer education plan. After an investigation, the Commission can refuse plans that do not meet its criteria. This adds stronger checks before new gas or power pricing plans take effect.
Earnings-sharing and fewer rate cases
Alternative rate plans may include an earnings-sharing rule, so extra utility profits can be shared with customers. The Commission can also add other terms it finds reasonable and in the public interest. For electric utilities, a plan may waive or extend the usual 36-month schedule for filing a general rate case. This changes how often rates are reviewed and how risk and profits are shared.
New electric utility rate plan rules
The PUC writes the process and content rules for electric utility alternative rate plans. If practical, filings must include cost‑of‑service studies and compare bills under the plan versus normal rates. The PUC must use set approval criteria, hold at least one public session, and decide within 210 days (one 90‑day extension), or the plan is denied. Plans with formula or multi‑year rates must share extra earnings with customers and adjust returns if utility risk changes. If capital spending is later found imprudent, the utility must refund amounts it collected. The PUC may investigate plans any time and can refuse to accept filings that do not meet its criteria. Utilities serving less‑dense counties could first apply starting the first Monday in January 2020; those in denser counties starting the first Monday in January 2021.
New gas utility rate plan rules
The law lets natural gas utilities apply for alternative rate plans. The Public Utilities Commission (PUC) sets the rules and must hold customer sessions before acting. A utility may file with a general rate case or within 6 months after it is approved. The PUC must decide within 210 days, with one 90‑day extension, or the plan is denied. If the PUC approves with changes, the utility has 30 days to accept or the plan is withdrawn. Plans with formula or multi‑year rates must share extra earnings with customers and adjust the allowed return if utility risk changes. If capital spending is later found imprudent, the utility must refund money it collected. The PUC can investigate and change plan rates at any time. The law also creates a filing path so gas utilities can seek these plans.
Quarterly fuel and power bill changes
Gas and electric utilities may change rates every quarter to pass through recorded fuel and power costs, if the PUC approves within 120 days. Caps apply: up to 2.5 cents per therm for gas and 0.25 cents per kWh for electricity; if the deferred balance varies by less than 5%, the change is zero. The PUC may allow larger quarterly changes for good cause. Utilities must notify the PUC and customers within 30 days, show total and monthly bill changes by class, and allow public comments. All quarterly charges face an annual review with no presumption of prudence; the utility must prove costs were reasonable, and the PUC can order disallowances or refunds. A utility may ask to switch from quarterly to annual adjustments. The law also defines how the per‑unit deferred energy adjustment is calculated and requires added cost‑of‑service and rate‑design info when annual filings overlap a pending rate case.
Regular rate reviews and customer protections
The PUC must rule on proposed schedule changes within 210 days, or the changes are deemed approved. In a general rate case, a utility must file 12 months of actual results; only known and measurable changes within 6 months count, and higher rates cannot start until experienced, certified, and approved. A utility may include expected changes within 210 days if it proves them. A utility cannot file another general rate case while one is pending, unless the PUC finds a financial emergency. Electric utilities must file at least every 36 months (with initial deadlines in June 2019 or June 2020), and larger water/sewer utilities ($2,000,000+ in revenue) must also file every 36 months unless waived. The Consumer’s Advocate is a party in electric general rate and annual energy cases. The PUC may delay new rates and may allow reduced rates for low‑income residential customers. Facilities accepted in a three‑year resource plan are deemed prudent for cost recovery.
Limit on frequent fuel cost hikes
A utility can file to recover higher fuel, power, or resale natural gas costs no more than once every 30 days. This 30-day limit does not apply to utilities that already adjust rates every quarter under law. This helps reduce very frequent bill changes while keeping quarterly adjustments in place.
Sponsors & Cosponsors
Sponsor
Senate Committee on Growth and Infrastructure
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 6/2/2025
Final Passage - Assembly (2nd Reprint)
Yes: 36 • No: 6
Senate vote • 4/22/2025
Final Passage - Senate (1st Reprint)
Yes: 21 • No: 0
Actions Timeline
Approved by the Governor. Chapter 451.
6/9/2025legislatureEnrolled and delivered to Governor.
6/6/2025legislatureTo enrollment.
6/4/2025SenateAssembly Amendment No. 707 concurred in.
6/2/2025SenateIn Senate.
6/2/2025SenateRead third time. Passed, as amended. Title approved, as amended. (Yeas: 36, Nays: 6.) To Senate.
6/2/2025HousePlaced on General File.
6/2/2025HouseWithdrawn from Committee on Ways and Means.
6/2/2025HouseTo committee.
5/22/2025HouseFrom printer. To reengrossment. Reengrossed. Second reprint.
5/22/2025HouseTo printer.
5/20/2025HouseRereferred to Committee on Ways and Means. Exemption effective.
5/20/2025HouseRead second time. Amended. (Amend. No. 707.)
5/20/2025HousePlaced on Second Reading File.
5/20/2025HouseFrom committee: Amend, without recommendation, and rerefer to Committee on Ways and Means.
5/20/2025HouseRead first time. Referred to Committee on Growth and Infrastructure. To committee.
4/28/2025HouseIn Assembly.
4/28/2025HouseTo Assembly.
4/28/2025SenateFrom printer. To engrossment. Engrossed. First reprint.
4/25/2025SenateRead third time. Passed, as amended. Title approved. (Yeas: 21, Nays: None.) To printer.
4/22/2025SenateNotice of eligibility for exemption.
4/21/2025SenateReprinting dispensed with.
4/21/2025SenateRead second time. Amended. (Amend. No. 244.)
4/21/2025SenatePlaced on Second Reading File.
4/21/2025SenateFrom committee: Amend, and do pass as amended.
4/21/2025Senate
Bill Text
As Enrolled
As Introduced
Reprint 1
Reprint 2
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