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- 83rd Session (2025)
Assembly Bill No. 449–Assemblymember Gurr
CHAPTER..........
AN ACT relating to public utilities; revising provisions governing
certain procedures or methodologies for changing rates or
fees for certain public utilities; revising provisions
authorizing certain public utilities to submit letters of advice
for certain proposed changes in schedules of rates or ser vices
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
regulations which provide simplified procedures or methodologies for a change of
rates for those public utilities which furnish water or services for the disposal of
sewage, or both, and which: (1) serve 3,000 or fewer persons; and (2) had during
the immediately preceding 12-month period gross sales for water or services for the
disposal of sewage amounting to $2,000,000 or less. Existing law also requires the
regulations adopted by the Commission to authorize public utilities that satisfy
those requirements to file letters of advice to change rates based on a nationally
recognized inflation index approved by the Commission. (NRS 704.095) Section 1
of this bill instead requires the regulations adopted by the Commission to provide
for simplified procedures or methodolo gies for a change of any rates or for public
utilities which furnish water or services for the disposal of sewage, or both, and
which: (1) serve 4,000 or fewer persons; and (2) had during the immediately
preceding 12 -month period gross sales for water or s ervices for the disposal of
sewage amounting to $4,000,000 or less. In addition to providing for the filing of
letters of advice to change rates based on an approved nationally recognized
inflation index, section 1 requires those regulations to provide for the filing of
letters of advice to change fees, as authorized by the Commission, based on such an
index.
Existing law generally requires a public utility to submit an application and
obtain the approval of the Commission for a change in any schedule of rates or
services. (NRS 704.110) However, existing law authorizes a public utility to submit
a letter of adv ice in lieu of filing an application with the Commission if, among
other criteria, the proposed change does not change any rate or will result in an
increase in annual gross operating revenue in an amount that does not exceed
$15,000. Existing law addition ally sets forth various requirements for the
submission of a letter of advice in lieu of an application by a small -scale provider
of last resort. (NRS 704.100) Section 2 of this bill authorizes a public utility other
than a small-scale provider of last resort to submit a letter of advice if the proposed
change does not change any rate or will result in an increase in annual gross
operating revenue in an amount that does not exceed $100,000. Section 2 maintains
the requirements for the use of a letter of adv ice by a small -scale provider of last
resort provided under existing law.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
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:
704.095 1. The Commission shall ad opt regulations which
provide simplified procedures or methodologies for a change of any
rates or fees for those public utilities which furnish water or services
for the disposal of sewage, or both, to persons within this State for
compensation, and which:
(a) Serve [3,000] 4,000 or fewer persons; and
(b) Had during the immediately preceding 12 -month period
gross sales for water or services for the disposal of sewage
amounting to [$2,000,000] $4,000,000 or less. If a public utility
furnishes both water and services for the disposal of sewage, its
gross sales for each service must be considered separately for
determining whether the public utility qualifies under this paragraph
for either service.
2. The regulations adopted by the Commission pursuant to
subsection 1 must provide, without limitation, for the filing of letters
of advice to change rates and, as authorized by the Commission,
fees, based on a nationally recognized inflation index approved by
the Commission.
Sec. 2. NRS 704.100 is hereby amended to read as follows:
704.100 1. Except as otherwise provided in NRS 704.075,
704.68861 to 704.68887, inclusive, 704.7865 and 704.7867, or as
may otherwise be provided by the Commission pursuant to NRS
704.095, 704.097 or 704.7621:
(a) A public utility shall not make changes in any schedule,
unless the public utility:
(1) Files with the Commission an application to make the
proposed changes and the Commission approves the proposed
changes pursuant to NRS 704.110; or
(2) Files the proposed changes with the Commission using a
letter of advice in accordance with the provisions of paragraph (f)
or (g).
(b) A public utility shall adjust its rates on a quarterly basis
between annual rate adjustment applications pursuant to subsection
8 of NRS 704.110 based on changes in the public utility’s recorded
costs of natural gas purchased for resale.
(c) An electric utility shall, between annual deferred energy
accounting adjustment applications filed pursuant to NRS 704.187,
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adjust its rates on a quarterly basis pursuant to subsection 10 of
NRS 704.110.
(d) A public utility shall post copies of all proposed schedules
and all new or amended schedules in the same offices and in
substantially the same form, manner and places as re quired by NRS
704.070 for the posting of copies of schedules that are currently in
force.
(e) A public utility may not set forth as justification for a rate
increase any items of expense or rate base that previously have been
considered and disallowed by the Commission, unless those items
are clearly identified in the application and new facts or
considerations of policy for each item are advanced in the
application to justify a reversal of the prior decision of the
Commission.
(f) Except [as otherwise provided in paragraph (g),] for a public
utility that is a small -scale provider of last resort, if the proposed
change in any schedule does not change any rate or will result in an
increase in annual gross operating revenue in an amount that does
not exceed [$15,000:] $100,000:
(1) The public utility may file the proposed change with the
Commission using a letter of advice in lieu of filing an application;
and
(2) The Commission shall determine whether it should
dispense with a hearing regarding the proposed change.
A letter of advice filed pursuant to this paragraph must include a
certification by the attorney for the public utility or an affidavit by
an authorized representative of the public utility that to the best of
the signatory’s knowledge, infor mation and belief, formed after a
reasonable inquiry, the proposed change in schedule does not
change any rate or result in an increase in the annual gross operating
revenue of the public utility in an amount that exceeds [$15,000.]
$100,000.
(g) If the applicant is a small-scale provider of last resort and the
proposed change in any schedule will result in an increase in annual
gross operating revenue in an amount that does not exceed $50,000
or 10 percent of the applicant’s annual gross operating revenue,
whichever is less:
(1) The small -scale provider of last resort may file the
proposed change with the Commission using a letter of advice in
lieu of filing an application if the small-scale provider of last resort:
(I) Includes with the letter of advice a certification by the
attorney for the small -scale provider of last resort or an affidavit by
an authorized representative of the small-scale provider of last resort
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that to the best of the signatory’s knowledge, information and belief,
formed after a reasonable inquiry, the proposed change in schedule
does not change any rate or result in an increase in the annual gross
operating revenue of the small -scale provider of last resort in an
amount that exceeds $50,000 or 10 percent, whichever is less;
(II) Demonstrates that the proposed change in schedule is
required by or directly related to a regulation or order of the Federal
Communications Commission; and
(III) Except as otherwise provided in subsection 2, files
the letter of advice not la ter than 5 years after the Commission has
issued a final order on a general rate application filed by the
applicant in accordance with subsection 3 of NRS 704.110; and
(2) The Commission shall determine whether it should
dispense with a hearing regarding the proposed change.
Not later than 10 business days after the filing of a letter of
advice pursuant to subparagraph (1), the Regulatory Operations
Staff of the Commission or any other interested party may file with
the Commission a request that the Commission order an applicant to
file a general rate application in accordance with subsection 3 of
NRS 704.110. The Commission may hold a hearing to consider such
a request.
(h) In making the determination pursuant to paragraph (f) or (g),
the Commission sh all first consider all timely written protests, any
presentation that the Regulatory Operations Staff of the Commission
may desire to present, the application of the public utility and any
other matters deemed relevant by the Commission.
2. An applicant that is a small-scale provider of last resort may
submit to the Commission a written request for a waiver of the
5-year period specified in sub -subparagraph (III) of subparagraph
(1) of paragraph (g) of subsection 1. The Commission shall, not later
than 90 days after receipt of such a request, issue an order approving
or denying the request. The Commission may approve the request if
the applicant provides proof satisfactory to the Commission that the
applicant is not earning more than the rate of return au thorized by
the Commission and that it is in the public interest for the
Commission to grant the request for a waiver. The Commission
shall not approve a request for a waiver if the request is submitted
later than 7 years after the issuance by the Commissi on of a final
order on a general rate application filed by the applicant in
accordance with subsection 3 of NRS 704.110. If the Commission
approves a request for a waiver submitted pursuant to this
subsection, the applicant shall file the letter of advice pursuant to
subparagraph (1) of paragraph (g) of subsection 1 not earlier than
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120 days after the date on which the applicant submitted the request
for a waiver pursuant to this subsection, unless the order issued by
the Commission approving the request fo r a waiver specifies a
different period for the filing of the letter of advice.
3. As used in this section, “electric utility” has the meaning
ascribed to it in NRS 704.187.
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