CHAPTER 704 - REGULATION OF PUBLIC UTILITIES GENERALLY

NAC 704.6335 “Production system” defined. (NRS 703.025, 704.210) “Production system” means wells, water treatment facilities, chemical feed systems, associated piping and any other appurtenances which are necessary for production. (Added to NAC by Pub. Utilities Comm’n by R078-14…

NAC 704.63355 “Resource plan” defined. (NRS 703.025, 704.210) “Resource plan” has the meaning ascribed to it in NAC 704.5654. (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

NAC 704.6336 “System improvement rate” defined. (NRS 703.025, 704.210) “System improvement rate” means a rate established by the Commission pursuant to NAC 704.6343. (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

NAC 704.63365 “System improvement rate revenue requirement” defined. (NRS 703.025, 704.210) “System improvement rate revenue requirement” means an amount equal to depreciation expense plus carrying costs, less the depreciation expense and carrying costs associated with any plant …

NAC 704.6337 “Transmission system” defined. (NRS 703.025, 704.210) “Transmission system” means transmission mains, storage facilities, booster stations, valves and any other appurtenances which are necessary for transmission. (Added to NAC by Pub. Utilities Comm’n by R078-14, eff…

NAC 704.63375 “Utility” defined. (NRS 703.025, 704.210) “Utility” means a public utility which furnishes, for compensation, any water for municipal, industrial or domestic purposes, or services for the disposal of sewage, or both. (Added to NAC by Pub. Utilities Comm’n by R078-14…

NAC 704.6338 “Wastewater system” defined. (NRS 703.025, 704.210) “Wastewater system” means wastewater mains, lift stations, facilities for wastewater treatment and any other appurtenances which are necessary for the collection of wastewater, treatment of wastewater, reclamation o…

NAC 704.63385 Request for recovery of certain amounts and costs; requirements; concurrent submission with request for assistance of Regulatory Operations Staff; approval; alternative rate design. (NRS 703.025, 704.110, 704.210, 704.663) 1. A utility may include in an application …

NAC 704.6339 Request or application for designation as eligible project; requirements; action by Commission. (NRS 703.025, 704.210, 704.661, 704.663) 1. A large utility may include in the action plan component of the utility’s resource plan submitted pursuant to NRS 704.661 a req…

NAC 704.63395 Notice of request or application for designation as eligible project. (NRS 703.025, 704.210, 704.661, 704.663) 1. A large utility that submits a request pursuant to subsection 1 of NAC 704.6339 or a utility that submits an application pursuant to subsection 2 of NAC…

NAC 704.634 Commission to provide approved budget estimate. (NRS 703.025, 704.210, 704.661, 704.663) The Commission will include with the approval of a request submitted by a large utility pursuant to subsection 1 of NAC 704.6339 or an application submitted by a utility pursuant …

NAC 704.6341 Calculation of eligible project regulatory asset account. (NRS 703.025, 704.210, 704.661, 704.663) The calculation for the eligible project regulatory asset account for an eligible project begins on the last day of the month during which the eligible project is place…

NAC 704.63415 Costs must be accounted for and readily identifiable. (NRS 703.025, 704.210, 704.661, 704.663) All costs of an eligible project must be accounted for in the books and records of a utility separately from accounts attributable to any other activity. Each regulatory a…

NAC 704.6342 Calculation of carrying costs, annual system improvement rate revenue requirement, authorized pretax rate of return and weighted average return. (NRS 703.025, 704.210) For the purpose of calculating carrying costs, unless otherwise established by the Commission in th…

NAC 704.63425 System improvement rate: Filing deadline for application; requirements; recalculation and modification. (NRS 703.025, 704.210, 704.661, 704.663) 1. An application to establish a system improvement rate must be filed not later than 90 days after the completion of an …

NAC 704.6343 System improvement rate: Approval of application; authority to limit system improvement rate revenue requirement; deadline. (NRS 703.025, 704.210, 704.661, 704.663) 1. The Commission may approve an application to establish a system improvement rate filed pursuant to …

NAC 704.63435 System improvement rate: Annual application for continuation or adjustment; requirements; deadline for approval. (NRS 703.025, 704.210, 704.661, 704.663) 1. A utility that is charging a system improvement rate shall, on or before April 1 of each year after the estab…

NAC 704.6344 Applicability of certain provisions. (NRS 703.025, 704.110, 704.210) The provisions of NAC 704.63445, 704.6345 and 704.63455 apply only to a general rate case filed pursuant to NRS 704.110 by a utility that, with respect to the provision of water or sewer service had…

NAC 704.63445 Test year data for unadjusted water consumption; cost of service study. (NRS 703.025, 704.110, 704.210) 1. A utility shall, not less than 45 days before the date on which it files a general rate case application pursuant to NRS 704.110, provide test year data for un…

NAC 704.6345 Considerations of Commission in establishing requirements for revenue generated from certain customer classes. (NRS 703.025, 704.110, 704.210) The Commission will consider, in establishing the requirements for revenue generated from each customer class that is suppli…

NAC 704.63455 Alternative methods for analyzing results of cost of service study. (NRS 703.025, 704.110, 704.210) Any party to a general rate case application may provide an alternative method or methods of analyzing the results of a cost of service study conducted pursuant to su…

NAC 704.640 Natural gas companies. (NRS 703.025, 703.191, 704.210) 1. The Commission hereby adopts by reference the regulations contained in 18 C.F.R. Part 201 in the form most recently published by the United States Government Printing Office. The volume containing 18 C.F.R. Par…

NAC 704.645 Telephone companies. (NRS 703.025, 703.191, 704.210) 1. The Commission hereby adopts by reference the regulations contained in 47 C.F.R. Part 32, Uniform System of Accounts for Class A and B Telephone Companies, as those regulations exist on January 1, 1988. That Part…

NAC 704.650 Electric power companies. (NRS 703.025, 703.191, 704.210) 1. The Commission hereby adopts by reference the regulations contained in 18 C.F.R. Parts 41, 101 and 290 in the form most recently published by the United States Government Printing Office. The volume containi…

NAC 704.6502 Definitions. (NRS 703.025, 704.210) As used in NAC 704.6502 to 704.6546, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.6504 to 704.6522, inclusive, have the meanings ascribed to them in those sections. (Added to NAC by Pub. …

NAC 704.6504 “Allowance for funds used during construction” defined. (NRS 703.025, 704.210) “Allowance for funds used during construction” means the amount properly recorded in P.S.C.N. Account 107 by a utility to reflect the cost of money used to finance construction work in pro…

NAC 704.6506 “Average rate assumption method” defined. (NRS 703.025, 704.210) “Average rate assumption method” means the method under which the excess tax reserve is reduced over the remaining lives of the property as used in the utility’s regulated books of account which gave ri…

NAC 704.6508 “Contributions” defined. (NRS 703.025, 704.210) “Contributions” means cash or noncash property of which the utility has a beneficial use pursuant to section 118 of the Internal Revenue Code, 26 U.S.C. § 118, as amended. The term includes contributions in aid of const…

NAC 704.651 “Excess tax reserve” defined. (NRS 703.025, 704.210) “Excess tax reserve” means the excess of the reserve for deferred taxes, over the amount which would be the balance in the reserve if the amount of the reserve were determined by assuming that the reductions in corp…

NAC 704.6512 “Income tax gross up” defined. (NRS 703.025, 704.210) “Income tax gross up” means the additional contribution amount calculated pursuant to NAC 704.6532 which is required to indemnify the utility for the additional income tax liability as a result of section 118 of t…

NAC 704.6514 “P.S.C.N. Account 107” defined. (NRS 703.025, 704.210) “P.S.C.N. Account 107,” entitled “Construction Work in Progress,” means a balance sheet account which includes the total of the balances of work orders for an item of a utility plant in the process of constructio…

NAC 704.6516 “Reverse” defined. (NRS 703.025, 704.210) “Reverse” means the date certain when for a certain depreciable plant asset or vintage group of assets, the amount of book depreciation first exceeds tax depreciation. (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

NAC 704.6518 “Reverse South Georgia method” defined. (NRS 703.025, 704.210) “Reverse South Georgia method” means a method whereby a taxpayer computes the excess tax reserve on all public utility property included in the plant account on the basis of the weighted average life or c…

NAC 704.6522 “Vintage” and “vintage group” defined. (NRS 703.025, 704.210) “Vintage” or “vintage group” means the combination, into a group, of the plant’s assets constructed or acquired in a single fiscal or vintage year. From this group an average life or average service life o…

NAC 704.6524 Provisions obtainable from Internal Revenue Service. (NRS 703.025, 704.210) 1. Sections 49, 59A, 118, 166, 167, 168, 172, 263A, and 451 of the Internal Revenue Code may be obtained from the Internal Revenue Service. 2. Sections 203(e), 463, and 701(a) of the Tax Refo…

NAC 704.6526 Rules for rate making. (NRS 703.025, 704.210) 1. For the purpose of rate making, generally, any timing difference, excluding that associated with items previously flowed through, must be normalized at the applicable current corporate income tax rate. 2. Any item of d…

NAC 704.6528 Determination of rate base. (NRS 703.025, 704.210) 1. For rate-making purposes, the recorded book balances as of the end of the certification period must be used for the following accounts: (a) Plant in service; (b) Accumulated reserve for book depreciation; and (c) …

NAC 704.653 Calculation of allowance for funds used during construction; inclusion of deferred income tax as component of rate base. (NRS 703.025, 704.210) 1. Unless otherwise ordered by the Commission, the rate to be used in the calculation of the allowance for funds used during…

NAC 704.6532 Contributions to corporate capital. (NRS 703.025, 704.210) 1. The Commission hereby adopts by reference section 118 of the Internal Revenue Code, 26 U.S.C. § 118, as amended. 2. All contributions made pursuant to section 118 of the Internal Revenue Code will be incre…

NAC 704.6534 Normalization of timing differences. (NRS 703.025, 704.210) 1. This section applies only to those timing differences which are mandated to be normalized by the Internal Revenue Code. 2. Excess income tax reserves must be calculated for each vintage of assets appearin…

NAC 704.6536 Net operating loss carrybacks and carryovers. (NRS 703.025, 704.210) 1. To the extent losses from the operation of a business are the result of differences unrelated to timing, the effects of carrybacks or carryovers pursuant to section 172 of the Internal Revenue Co…

NAC 704.6538 Capitalization and inclusion in inventory costs of certain expenses. (NRS 703.025, 704.210) The Commission hereby adopts by reference section 263A, “Capitalization and Inclusion in Inventory Costs of Certain Expenses,” of the Internal Revenue Code, 26 U.S.C. § 263A, …

NAC 704.6542 Alternative minimum tax. (NRS 703.025, 704.210) 1. The Commission hereby adopts by reference sections 53, “Credit for Prior Year Minimum Tax Liability,” and 55, “Alternative Minimum Tax Imposed,” of the Internal Revenue Code, 26 U.S.C. §§ 53 and 55, as amended. 2. Fo…

NAC 704.6544 Environmental tax. (NRS 703.025, 704.210) 1. The Commission hereby adopts by reference section 59A of the Internal Revenue Code, 26 U.S.C. § 59A, as amended, which establishes a fund for the environmental tax to clean up hazardous substances through 1995. 2. For the …

NAC 704.6546 Use of separate-entity method by utility members of consolidated group. (NRS 703.025, 704.210) 1. In computing federal income taxes, utility members of a consolidated group must use a separate-entity method, rather than a consolidated-company approach which includes …

NAC 704.655 Applicability. (NRS 703.025, 704.210) The provisions of NAC 704.655 to 704.665, inclusive, apply only to Sierra Pacific Power Company and Nevada Power Company. [Pub. Service Comm’n, Gen. Order 33 § 1.2, eff. 9-17-82]

NAC 704.660 Consideration of marginal cost of service in determining class revenue requirements. (NRS 703.025, 704.210) The Commission will consider a utility’s marginal (incremental) cost of service to each class of customer in determining the revenue required from that class. […