Nevada SB 417: Revises provisions relating to public utilities. (BDR 58-1106)

Bill Text

- 83rd Session (2025)
Senate Bill No. 417–Committee on
Growth and Infrastructure

CHAPTER..........

AN ACT relating to public utilities; requiring the Public Utilities
Commission of Nevada to adopt regulations governing the
filing of an application for the establishment of an alternative
rate-making plan by a natural gas utility; setting forth certain
requirements for the submission and approval of such an
alternative rate-making plan; revising certain provisions
relating to the application and approval for an alternative
rate-making plan by an electric utility; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law sets forth certain procedures for a public utility to make changes to
a general rate schedule by applying to Public Utilities Commission of Nevada.
(NRS 704.100, 704.110) Section 11 of this bill requires the Commission to adopt
regulations establishing procedures for a natural gas utility to apply to the
Commission for the approval of an alternative rate-making plan, which establishes
the alternative rate-making mechanisms that the natural gas utility is authorized to
use to set rates during the time period of the plan. The regulations adopted by the
Commission must: (1) establish the alternative rate-making mechanisms that may
be included in a plan and any limitations on such alternative rate-making
mechanisms; (2) prescribe the information that must be included in an alternative
rate-making plan and an application for the approval of such a plan; (3) specify the
circumstances under which a natural gas utility for which an alternative rate-
making plan has been approved must file a general rate application; (4) provide a
process to educate customers of a natural gas utility regarding alternative rate-
making mechanisms; (5) require a natural gas utility for which an alternative rate-
making plan has been approved to keep certain records; and (6) establish criteria for
the evaluation of an alternative rate-making plan. Additionally, section 11 requires
that, if a natural gas utility files an application for an alternative rate-making plan
that includes formula rates or a multi-year rate plan, the alternative rate-making
plan must include: (1) an earnings-sharing mechanism; and (2) certain information
and calculations relating to changes in risk to the natural gas utility.
Section 12 of this bill authorizes a natural gas utility to submit an application to
establish an alternative rate-making plan pursuant to the regulations adopted by the
Commission, establishes time limits for the Commission to approve or deny such
an application and requires the Commission to conduct a consumer session in each
major geographic area in which the natural gas utility provides services before
taking action on such an application. Section 12 requires an application for the
approval of an alternative rate-making plan to include a plan to educate the
customers of the natural gas utility regarding the alternative rate-making
mechanisms in the plan proposed by the utility. Section 12 prohibits the
Commission from approving an alternative rate-making plan unless the
Commission determines that the plan meets certain requirements. Section 12 also
authorizes an alternative rate-making plan to include certain provisions, including,
without limitation, a mechanism for earnings-sharing with the customers of the
utility. Additionally, section 12 authorizes a natural gas utility to reject an
application for an alternative rate-making plan with modifications approved by the

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- 83rd Session (2025)
Commission. Finally, section 12 authorizes the Commission to investigate and
change rates, tolls, charges, rules, regulations, practices and services relating to an
alternative rate-making plan under certain circumstances. Section 13 of this bill
provides that the provisions of this bill do not limit the existing rate-making
authority of the Commission.
Sections 3-10 of this bill define certain terms relating to alternative rate-making
plans.
Sections 14 and 15 of this bill create exceptions from the procedure set forth in
existing law to change a general rate schedule to authorize a natural gas utility
to file an application to establish an alternative rate-making plan pursuant to
section 12.
Existing law requires the Commission to adopt regulations to establish
procedures for an electric utility to apply to the Commission for the approval of an
alternative rate-making plan. (NRS 704.762) Section 16 of this bill requires that, if
an electric utility files an application for an alternative rate-making plan that
includes formula rates or a multi-year rate plan, the alternative rate-making plan
must include: (1) an earnings-sharing mechanism; and (2) certain information and
calculations relating to changes in risk to the electric utility.
Existing law authorizes an electric utility to apply to the Commission to
establish an alternative rate-making plan and sets forth certain requirements