NAC703.27138. Determination of appropriate return on common equity.

     1. At least once every 3 years, small-scale providers of last resort, the staff of the Commission and the Consumer’s Advocate shall hold discussions to determine whether they can recommend:

     (a) A formula to calculate returns on common equity;

     (b) A generic return on common equity; or

     (c) Individual returns on common equity,

Ê that would be applicable to the small-scale providers of last resort until the time in which the returns on common equity are next established pursuant to this section. The staff of the Commission is responsible for convening the discussion.

     2. If the small-scale providers of last resort, the staff of the Commission and the Consumer’s Advocate are able to agree to a mutually acceptable formula, generic return or returns on equity for individual companies, the staff of the Commission shall submit a petition requesting review and approval of the joint recommendation by the Commission. If the parties cannot agree on a joint recommendation, the staff of the Commission shall file a petition requesting that the Commission adopt a formula, a fixed return on common equity applicable to all small-scale providers of last resort, or a specific return on common equity for individual small-scale providers of last resort. In its petition, the staff shall present the facts necessary to justify its recommendations.

     3. Upon receipt of a petition pursuant to subsection 2, the Commission will give public notice of the petition and solicit written comments and may, after a reasonable time for the receipt of written comments, issue an order which accepts, rejects or modifies the recommendation and specifies the formula, return or returns as accepted, rejected or modified, or set the matter for hearing.

     4. The Commission will use the formula, return or returns on common equity as determined by the Commission pursuant to this section in evaluating each application for a change in rates filed by a small-scale provider of last resort subject to the provisions of NAC 703.27128 to 703.27146, inclusive, and for requests for money from the fund established pursuant to NRS 704.040, unless a party of record to the proceeding notifies the Commission and the other parties of record, in writing, before the deadline set for petitions for leave to intervene, of its intention to present evidence in support of a different rate of return on common equity.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)