NAC704.582. Range of reasonable returns on equity: Annual filing and service; contents; use in application for adjustments in rates.

     1. On or before February 15 of each year, the Regulatory Operations Staff shall file with the Commission and serve upon the Consumer’s Advocate and all public utilities that furnish water or services for the disposal of sewage, or both, a range of reasonable returns on equity that may be used by those public utilities when filing an application for adjustments in rates.

     2. In a range of reasonable returns on equity filed pursuant to subsection 1, the Regulatory Operations Staff shall specify the appropriate return on equity applicable to a public utility that furnishes water or services for the disposal of sewage, or both, based upon:

     (a) The size of the public utility; and

     (b) Whether the public utility is a subsidiary of a holding company.

     3. A range of reasonable returns on equity filed pursuant to subsection 1 shall be accompanied by all work papers used to establish the range of returns on equity.

     4. The use in an application for adjustments in rates by a public utility that furnishes water or services for the disposal of sewage, or both, of the most recent applicable range of reasonable returns on equity filed by the Regulatory Operations Staff creates a rebuttable presumption that the return on equity requested by the public utility is just and reasonable.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)