CHAPTER 704 - REGULATION OF PUBLIC UTILITIES GENERALLY

NAC 704.6323 Applicability. (NRS 703.025, 704.210, 704.668) The provisions of NAC 704.6321 to 704.6327, inclusive, apply to public utilities that are required to comply with the provisions of NRS 704.668. To determine whether a public utility is required to comply with the provis…

NAC 704.6325 Requirements concerning essential real property and goods. (NRS 703.025, 704.210, 704.668) A utility shall own, lease or have access to sufficient essential real property and goods to comply with the requirements of NAC 704.628. The utility shall protect and maintain…

NAC 704.6327 Application for sale, transfer or other disposal of essential real property and goods and for sale or transfer of water rights; notice of application and hearing. (NRS 703.025, 704.210, 704.668) 1. A utility shall submit an application to the Commission requesting ap…

NAC 704.633 Definitions. (NRS 703.025, 704.210) As used in NAC 704.633 to 704.63455, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.6331 to 704.6338, inclusive, have the meanings ascribed to them in those sections. (Added to NAC by Pub. U…

NAC 704.6331 “Carrying costs” defined. (NRS 703.025, 704.210) “Carrying costs” means the return on an eligible project or, if applicable, the return on any plant that may be retired as part of the construction of the eligible project, adjusted for accumulated depreciation and acc…

NAC 704.63315 “Cost of service” defined. (NRS 703.025, 704.210) “Cost of service” means the average embedded cost of providing water service to a customer class. (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

NAC 704.6332 “Customer class” defined. (NRS 703.025, 704.210) “Customer class” means a category of customers identified in the rate schedule of a utility. (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

NAC 704.63325 “Depreciation expense” defined. (NRS 703.025, 704.210) “Depreciation expense” means the return of an eligible project or, if applicable, the return of any plant that may be retired as part of the construction of the eligible project, utilizing the utility’s authoriz…

NAC 704.6333 “Distribution system” defined. (NRS 703.025, 704.210) “Distribution system” means distribution mains, valves, hydrants, service lines, meters, meter installations and any other appurtenances which are necessary to transport treated water from the point at which the w…

NAC 704.63335 “Eligible project” defined. (NRS 703.025, 704.210) “Eligible project” means an improvement to a distribution system, production system, transmission system or wastewater system that the Commission designates as being eligible for the recovery of costs through a syst…

NAC 704.6334 “Eligible project regulatory asset account” and “regulatory asset account” defined. (NRS 703.025, 704.210) “Eligible project regulatory asset account” or “regulatory asset account” means an account in which a utility records an amount equal to the monthly system impr…

NAC 704.63345 “Large utility” defined. (NRS 703.025, 704.210) “Large utility” means a utility that had an annual gross operating revenue of $1,000,000 or more for at least 1 year during the immediately preceding 3 years. (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-…

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…