NV SB417

Public Utilities Commission of Nevada must adopt regulations allowing natural gas utilities to apply for alternative rate-making plans, which may include performance-based rates, formula rates, multi-year rate plans exceeding 36 months, earnings-sharing mechanisms, and decoupling mechanisms.

Natural gas utilities applying for alternative rate-making plans with formula rates or multi-year rate plans must include an earnings-sharing mechanism and demonstrate how changes in utility risk would affect customer rates and the utility's rate of return.

Commission must act on alternative rate-making plan applications within 210 days (with possible 90-day extension) and conduct consumer sessions in each major geographic area served before approving any plan.

Electric and natural gas utilities must prove capital expenditures recovered under alternative rate-making plans were prudent; if the Commission finds expenditures were not prudent, utilities must refund those costs to customers.

Utilities may reject Commission-modified alternative rate-making plans within 30 days of approval, and the Commission retains authority to investigate and modify plan rates, charges, and practices at any time.