Section 704.Sec. 4.6 - NEW1. As part of the proposal required by subsection 6 of NRS 704.741, the electric utility shall include the calculations set forth in this section, which shall be used to determine the charges to be paid by an eligible customer over the course of the transition period as provided by section 12. If the transition period is extended, as provided by subsection 4 of section 12, the time period for the calculations required by this section must be extended accordingly.2. The electric utility shall use its production cost modeling software to perform two sets of production cost simulations for a 3-year period, which coincides with the 3-year period of the action plan, as follows:(a) The first production cost simulation will be known as the base case expansion plan and must be conducted by:(1) Using the electric utility's load, fuel and purchase power forecasts from the electric utility's preferred plan, including the proposed amount of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources pursuant to subsection 6 of NRS 704.741; and(2) Excluding all energy and capacity needs associated with the placeholder resources, which are generating facilities that have not yet been identified, proposed or approved as a part of the electric utility's resource plan, and assuming all energy and capacity needs are fulfilled with market purchases at the prices contained in the fuel and purchase power forecasts.(b) The second production cost simulation will be known as the change case plan and must be conducted by: (1) Using the electric utility's load, fuel and purchase power forecasts from the electric utility's preferred plan, but not including the proposed amount of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources pursuant to subsection 6 of NRS 704.741;(2) Using January 1 of the second year of the applicable 3-year action plan period as the departure date for the analyses; and(3) Performing the production cost simulations with external non-firm power sales omitted.3. The electric utility shall calculate the net differential energy rate, which must be held fixed for the duration of any transition period initiated pursuant to an application filed pursuant to NRS 704B.310 during the applicable action plan period. To calculate the net differential energy rate, the electric utility shall: (a) Use the system cost difference between the base case expansion plan and the change case plan to determine the impact to the base tariff energy rate.(b) After the base tariff energy rate system impact is calculated, calculate the portion of the base tariff energy rate system impact associated with the current and ongoing legislatively mandated public policy programs that affect the base tariff energy rate, which include, without limitation: (1) The out-of-money portion of the costs of long-term renewable energy contracts. To calculate such costs, the electric utility shall identify in its resource plan filed pursuant to NRS 704.741, for the Commission to determine, the long-term renewable energy contracts that contain out-of-money costs. The out-of-money costs are calculated by substituting the electric utility's projected average monthly system costs for the contractual prices of each of the out-of-money long-term renewable energy contracts, multiplying these projected average monthly system costs by the projected generation of the underlying renewable resources, and subtracting that cost from the projected costs of the renewable energy contracts.(2) The non-bypassable costs attributable to any other public policies that are applicable to eligible customers.(c) Subtract the portion of the Proposed Action Plan R-BTER costs and other non-bypassable costs attributable to other public policies attributable to the annual limits from the base tariff energy rate system impact cost to determine the net differential energy rate cost.(d) Divide the net differential energy rate cost by the energy consumption in kilowatt-hours attributed to the annual limits in the production costs modeling to derive the net differential energy rate.4. To calculate the impact to the base tariff general rate, determine the net impact to the variable operations and maintenance costs attributable to eligible customers by using the difference in variable operations and maintenance costs between the base case expansion plan and change case plan.5. As used in this section:(a) "Proposed Action Plan R-BTER" means the out-of-money portion of the costs of long-term renewable energy contracts calculated for the production cost simulation period.(b) "Transition period" means a 3-year period commencing on the date on which the eligible customer begins to take service from a provider of new electric resources.Nev. Admin. Code § 704.Sec. 4.6
Added to NAC by Pub. Utilities Comm'n by R195-22A, eff. 9/16/2024NRS 703.025, 704.210, 704.741