Application for establishment of alternative rate-making plan; action by Commission on application; consumer session required; requirements if plan authorizes recovery of costs of capital expenditure; acceptance or rejection of modified plan by utility; investigation relating to plan.
Nev. Rev. Stat. § 704.9904
in effect1. Except as otherwise provided in subsection 3 of NRS 704.99039 and in accordance with the regulations adopted by the Commission pursuant to NRS 704.99039 , not earlier than the date on which the Commission first adopts regulations pursuant to NRS 704.99039 , a natural gas utility may apply to the Commission to establish an alternative rate-making plan which sets forth the alternative rate-making mechanisms to be used to establish rates during the time period covered by the plan.
2. A natural gas utility may file an application pursuant to subsection 1:
(a) At the same time the natural gas utility files a general rate application pursuant to NRS 704.110 ; or
(b) Not later than 6 months after the date on which the Commission issues an order approving a general rate application filed by the natural gas utility pursuant to NRS 704.110 .
3. The Commission shall approve, with or without modifications, or deny an application submitted pursuant to subsection 1 not later than 210 days after the Commission receives a copy of the application unless the Commission, upon good cause, extends by not more than 90 days the time to act upon the application. If the Commission fails to act upon an application within the time provided by this subsection, the application shall be deemed to be denied.
4. The Commission shall conduct a consumer session pursuant to NRS 704.069 in each major geographic area in which the natural gas utility provides services to solicit comments from the public before taking action on an application submitted pursuant to subsection 1.
5. The Commission shall not approve an application submitted pursuant to subsection 1 unless the Commission determines that the plan:
(a) Is in the public interest;
(b) Results in just and reasonable rates, as determined by the Commission;
(c) Protects the interests of the customers of the natural gas utility;
(d) Satisfies the criteria established by the Commission pursuant to paragraph (g) of subsection 1 of NRS 704.99039 ;
(e) Specifies the time period to which the plan applies; and
(f) Includes a plan for educating the customers of the natural gas utility regarding the alternative rate-making mechanisms included in the plan.
6. An alternative rate-making plan may include, without limitation:
(a) An earnings-sharing mechanism that balances the interests of customers that purchase natural gas for consumption in this State and the shareholders of the natural gas utility; and
(b) Any other term or condition proposed by a natural gas utility or any party participating in the proceeding or that the Commission finds is reasonable and serves the public interest.
7. If the Commission approves an application for an alternative rate-making plan that authorizes the recovery of the costs of a capital expenditure:
(a) The natural gas utility must prove that the capital expenditure was prudent at the time the natural gas utility files a general rate application pursuant to NRS 704.110 or at any time established by regulation of the Commission; and
(b) If the Commission determines during a general rate case proceeding conducted pursuant to NRS 704.110 that the natural gas utility did not prove that the capital expenditure was prudent, the Commission shall require the natural gas utility to refund the customers of the natural gas utility the amount previously recovered through charges to customers of the natural gas utility for the costs of the capital expenditure.
8. If the Commission approves an application for an alternative rate-making plan with modifications pursuant to subsection 3, the natural gas utility may accept or reject the modified alternative rate-making plan by filing a notice with the Commission not later than 30 days after the date on which the Commission issues an order approving the application. If a natural gas utility files a notice to reject the modified alternative rate-making plan, the alternative rate-making plan shall be deemed withdrawn and:
(a) If a general rate application was filed at the same time as the application for the alternative rate-making plan and the general rate application or any portion thereof was approved, the rates approved in the general rate application shall be deemed in effect. To the extent that a portion of a general rate application is approved, the rates that were in effect before the portion of the general rate application was approved by the Commission remain in effect for any portion of the general rate application not approved by the Commission until changed or modified by the Commission.
(b) If a general rate application was not filed at the same time as the application for the alternative rate-making plan, the rates that were in effect before the modified alternative rate-making plan was approved remain in effect until changed or modified by the Commission.
9. The Commission may at any time, upon its own motion or after receiving a complaint from any customer, the Consumers Advocate or the Regulatory Operations Staff of the Commission, investigate any of the rates, tolls, charges, rules, regulations, practices and services relating to the alternative rate-making plan, and, after a full hearing as provided in NRS 704.120 , by order, make such changes as may be just and reasonable to the same extent as authorized by NRS 704.120 .
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-704.htmlFetched: 10/4/2026