NAC701B.245. Method of accounting for costs and revenues of utility; filing, calculation and adjustment of Solar Thermal Program rate; recovery of Program costs.

     1. Except as otherwise provided in NAC 701B.250, a utility shall account for costs and revenues in the following manner:

     (a) Calculate, on a monthly basis, the costs incurred and revenues received in the Solar Thermal Program since the end of the test period in its last proceeding to change the Solar Thermal Program rate;

     (b) Record the cost of the Solar Thermal Program in a separate subaccount of FERC Account No. 182.3 and make an appropriate offset to other subaccounts;

     (c) Maintain subsidiary records of the subaccount of FERC Account No. 182.3 which must clearly delineate, without limitation, the rebates, contractor costs, marketing costs, training costs and utility administrative costs associated with the Solar Thermal Program;

     (d) Record in the subaccount of FERC Account No. 182.3 the revenues attributable to the Solar Thermal Program rate to recover the costs of the Solar Thermal Program; and

     (e) Apply a carrying charge at the rate of one-twelfth of the authorized rate of return to the monthly ending balance in the subaccount of FERC Account No. 182.3.

     2. A utility shall include with its annual rate adjustment application filed pursuant to subsection 9 of NRS 704.110 a revised Solar Thermal Program rate. The revised Solar Thermal Program rate must be calculated by adding the following two components:

     (a) A prospective rate determined by dividing the total costs in the Solar Thermal Program annual plan by the projected therms for the program year; and

     (b) A clearing rate determined by dividing the cumulative balance in the Solar Thermal Program subaccount of FERC Account No. 182.3 at the end of the test period identified by the utility, consisting of the 12 calendar months ending on the adjustment date, consistent with NAC 704.063, by the therm sales for that test period.

     3. The Commission will allow recovery of all prudent Solar Thermal Program costs included in the subaccount of FERC Account No. 182.3 at the end of the identified test period, as defined in NAC 704.063, and adjust the Solar Thermal Program rate accordingly.

     (Added to NAC by Pub. Utilities Comm’n by R210-09, eff. 4-20-2010; A by R076-11, 5-30-2012)