A.B. 449
- *AB449*
ASSEMBLY BILL NO. 449–ASSEMBLYMEMBER GURR
MARCH 17, 2025
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Referred to Committee on Growth and Infrastructure
SUMMARY—Revises provisions governing public utilities.
(BDR 58-888)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to public utilities; revising provisions governing
certain procedures or methodologies for changing rates or
charges for certain public utilities; revising provisions
authorizing certain public utilities to submit letters of
advice for certain proposed changes in schedules of rates
or services in lieu of filing an application with the Public
Utilities Commission of Nevada; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law requires the Public Utilities Commission of Nevada to adopt 1
regulations which provide simplified procedures or methodologies for a change of 2
rates for those public utilities which furnish water or services for the disposal of 3
sewage, or both, and which: (1) serve 3,000 or fewer persons; and (2) had during 4
the immediately preceding 12-month period gross sales for water or services for the 5
disposal of sewage amounting to $2,000,000 or less. Existing law also requires the 6
regulations adopted by the Commission to authorize public utilities that satisfy 7
those requirements to file letters of advice to change rates based on a nationally 8
recognized inflation index approved by the Commission. (NRS 704.095) Section 1 9
of this bill instead requires the regulations adopted by the Commission to provide 10
for simplified procedures or methodologies for a change of any rates or charges, 11
including, without limitation, rates for furnishing water or services for the disposal 12
of sewage, or both, connection fees, fees to expand capacity for the storage of water 13
and fees to expand capacity for plants for the treatment of wastewater or effluent 14
for public utilities which furnish water or services for the disposal of sewage, or 15
both, and which: (1) serve 4,000 or fewer persons; and (2) had during the 16
immediately preceding 12-month period gross sales for water or services for the 17
disposal of sewage amounting to $4,000,000 or less. 18
Existing law generally requires a public utility to submit an application and 19
obtain the approval of the Commission for a change in any schedule of rates or 20
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services. (NRS 704.110) However, existing law authorizes a public utility to submit 21
a letter of advice in lieu of filing an application with the Commission if, among 22
other criteria, the proposed change does not change any rate or will result in an 23
increase in annual gross operating revenue in an amount that does not exceed 24
$15,000. Existing law additionally sets forth various requirements for the 25
submission of a letter of advice in lieu of an application by a small-scale provider 26
of last resort. (NRS 704.100) Section 2 of this bill authorizes a public utility other 27
than a small-scale provider of last resort to submit a letter of advice if the proposed 28
change does not change any rate or will result in an increase in annual gross 29
operating revenue in an amount that does not exceed $100,000. Section 2 maintains 30
the requirements for the use of a letter of advice by a small-scale provider of last 31
resort provided under existing law. 32
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 704.095 is hereby amended to read as follows: 1
704.095 1. The Commission shall adopt regulations which 2
provide simplified procedures or methodologies for a change of any 3
rates or charges for those public utilities which furnish water or 4
services for the disposal of sewage, or both, to persons within this 5
State for compensation, and which: 6
(a) Serve [3,000] 4,000 or fewer persons; and 7
(b) Had during the immediately preceding 12-month period 8
gross sales for water or services for the disposal of sewage 9
amounting to [$2,000,000] $4,000,000 or less. If a public utility 10
furnishes both water and services for the disposal of sewage, its 11
gross sales for each service must be considered separately for 12
determining whether the public utility qualifies under this paragraph 13
for either service. 14
2. The regulations adopted by the Commission pursuant to 15
subsection 1 must provide, without limitation, for the filing of letters 16
of advice to change [rates] : 17
(a) Rates for furnishing water or services for the disposal of 18
sewage, or both; 19
(b) Connection fees; 20
(c) Fees to expand capacity for the storage of water; and 21
(d) Fees to expand capacity for plants for the treatment of 22
wastewater or effluent, 23
based on a nationally recognized inflation index approved by the 24
Commission. 25
3. As used in this section, “connection fee” means the charge 26
for establishing service to a customer, defined in the tariff of the 27
utility as the installation or service connection fee. 28
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Sec. 2. NRS 704.100 is hereby amended to read as follows: 1
704.100 1. Except as otherwise provided in NRS 704.075, 2
704.68861 to 704.68887, inclusive, 704.7865 and 704.7867, or as 3
may otherwise be provided by the Commission pursuant to NRS 4
704.095, 704.097 or 704.7621: 5
(a) A public utility shall not make changes in any schedule, 6
unless the public utility: 7
(1) Files with the Commission an application to make the 8
proposed changes and the Commission approves the proposed 9
changes pursuant to NRS 704.110; or 10
(2) Files the proposed changes with the Commission using a 11
letter of advice in accordance with the provisions of paragraph (f) 12
or (g). 13
(b) A public utility shall adjust its rates on a quarterly basis 14
between annual rate adjustment applications pursuant to subsection 15
8 of NRS 704.110 based on changes in the public utility’s recorded 16
costs of natural gas purchased for resale. 17
(c) An electric utility shall, between annual deferred energy 18
accounting adjustment applications filed pursuant to NRS 704.187, 19
adjust its rates on a quarterly basis pursuant to subsection 10 of 20
NRS 704.110. 21
(d) A public utility shall post copies of all proposed schedules 22
and all new or amended schedules in the same offices and in 23
substantially the same form, manner and places as required by NRS 24
704.070 for the posting of copies of schedules that are currently in 25
force. 26
(e) A public utility may not set forth as justification for a rate 27
increase any items of expense or rate base that previously have been 28
considered and disallowed by the Commission, unless those items 29
are clearly identified in the application and new facts or 30
considerations of policy for each item are advanced in the 31
application to justify a reversal of the prior decision of the 32
Commission. 33
(f) Except [as otherwise provided in paragraph (g),] for a public 34
utility that is a small-scale provider of last resort, if the proposed 35
change in any schedule does not change any rate or will result in an 36
increase in annual gross operating revenue in an amount that does 37
not exceed [$15,000:] $100,000: 38
(1) The public utility may file the proposed change with the 39
Commission using a letter of advice in lieu of filing an application; 40
and 41
(2) The Commission shall determine whether it should 42
dispense with a hearing regarding the proposed change. 43
A letter of advice filed pursuant to this paragraph must include a 44
certification by the attorney for the public utility or an affidavit by 45
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an authorized representative of the public utility that to the best of 1
the signatory’s knowledge, information and belief, formed after a 2
reasonable inquiry, the proposed change in schedule does not 3
change any rate or result in an increase in the annual gross operating 4
revenue of the public utility in an amount that exceeds [$15,000.] 5
$100,000. 6
(g) If the applicant is a small-scale provider of last resort and the 7
proposed change in any schedule will result in an increase in annual 8
gross operating revenue in an amount that does not exceed $50,000 9
or 10 percent of the applicant’s annual gross operating revenue, 10
whichever is less: 11
(1) The small-scale provider of last resort may file the 12
proposed change with the Commission using a letter of advice in 13
lieu of filing an application if the small-scale provider of last resort: 14
(I) Includes with the letter of advice a certification by the 15
attorney for the small-scale provider of last resort or an affidavit by 16
an authorized representative of the small-scale provider of last resort 17
that to the best of the signatory’s knowledge, information and belief, 18
formed after a reasonable inquiry, the proposed change in schedule 19
does not change any rate or result in an increase in the annual gross 20
operating revenue of the small-scale provider of last resort in an 21
amount that exceeds $50,000 or 10 percent, whichever is less; 22
(II) Demonstrates that the proposed change in schedule is 23
required by or directly related to a regulation or order of the Federal 24
Communications Commission; and 25
(III) Except as otherwise provided in subsection 2, files 26
the letter of advice not later than 5 years after the Commission has 27
issued a final order on a general rate application filed by the 28
applicant in accordance with subsection 3 of NRS 704.110; and 29
(2) The Commission shall determine whether it should 30
dispense with a hearing regarding the proposed change. 31
Not later than 10 business days after the filing of a letter of 32
advice pursuant to subparagraph (1), the Regulatory Operations 33
Staff of the Commission or any other interested party may file with 34
the Commission a request that the Commission order an applicant to 35
file a general rate application in accordance with subsection 3 of 36
NRS 704.110. The Commission may hold a hearing to consider such 37
a request. 38
(h) In making the determination pursuant to paragraph (f) or (g), 39
the Commission shall first consider all timely written protests, any 40
presentation that the Regulatory Operations Staff of the Commission 41
may desire to present, the application of the public utility and any 42
other matters deemed relevant by the Commission. 43
2. An applicant that is a small-scale provider of last resort may 44
submit to the Commission a written request for a waiver of the 45
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5-year period specified in sub-subparagraph (III) of subparagraph 1
(1) of paragraph (g) of subsection 1. The Commission shall, not later 2
than 90 days after receipt of such a request, issue an order approving 3
or denying the request. The Commission may approve the request if 4
the applicant provides proof satisfactory to the Commission that the 5
applicant is not earning more than the rate of return authorized by 6
the Commission and that it is in the public interest for the 7
Commission to grant the request for a waiver. The Commission 8
shall not approve a request for a waiver if the request is submitted 9
later than 7 years after the issuance by the Commission of a final 10
order on a general rate application filed by the applicant in 11
accordance with subsection 3 of NRS 704.110. If the Commission 12
approves a request for a waiver submitted pursuant to this 13
subsection, the applicant shall file the letter of advice pursuant to 14
subparagraph (1) of paragraph (g) of subsection 1 not earlier than 15
120 days after the date on which the applicant submitted the request 16
for a waiver pursuant to this subsection, unless the order issued by 17
the Commission approving the request for a waiver specifies a 18
different period for the filing of the letter of advice. 19
3. As used in this section, “electric utility” has the meaning 20
ascribed to it in NRS 704.187. 21
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