NAC704.217. Application to recover deferred variable interest expense or dividends: Filing and contents.

     1. A utility that recovers its fuel costs through either an annual rate adjustment or a deferred energy application may file an application to recover deferred variable interest expense or dividends and to update the level of variable interest expense or dividends included in the current rates within 45 days after the end of the utility’s test period or concurrent with its annual rate adjustment application, whichever is applicable. An application may not be filed more than once during a calendar year.

     2. The application must include:

     (a) A request for approval to adopt the procedure;

     (b) A calculation of the weighted average variable interest or dividend rate;

     (c) A calculation of the net change in the base tariff general rate resulting from changes in the weighted average variable interest or dividend rate; and

     (d) A calculation of the net change in the base tariff general rate resulting from changes in accumulation of deferred interest.

     3. The net change in the base tariff general rate (1BTGR) resulting from changes in the weighted average variable interest or dividend rate must be based on the following formula:

                                                          [AVIR(new) - AVIR(prior)] X RB

1BTGR = ______________________________

                                                                                   BU

     4. The net change in the base tariff general rate (2BTGR) resulting from changes in accumulation of deferred interest (ADI) must be based on the following formula:

                                                         ADI(new)              ADI(prior)

                                    2BTGR =   ___________    -    ___________

                                                          BU(new)                BU(prior)

     5. The cumulative adjustment to the base tariff general rate resulting from changes in the weighted average variable interest or dividend rate and changes in the accumulations of deferred interest must be based on the following formula:

BTGR(new) =   BTGR(prior) + 1BTGR + 2BTGR

     6. As used in this section:

     (a) “ADI(new)” means the balance in the subaccount of FERC Account No. 182.3 or 254, whichever is applicable, at the end of the current test period.

     (b) “ADI(prior)” means the balance in the subaccount of FERC Account No. 182.3 or 254, whichever is applicable, at the end of the prior test period.

     (c) “AVIR(new)” means the current test period’s weighted variable interest or dividend rate for all outstanding variable rate securities issued by the utility and included in the Nevada jurisdictional capital structure, as approved in the last general rate case or other proceeding.

     (d) “AVIR(prior)” means the previously approved weighted average variable interest or dividend rate.

     (e) “BU” means the billing units established in the last general rate case or other proceeding.

     (f) “BU(new)” means the billing units established during the current proceeding.

     (g) “BU(prior)” means the billing units established during the prior proceeding.

     (h) “RB” means the rate base established in the last general rate case or other proceeding.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)