NAC704.6327. Application for sale, transfer or other disposal of essential real property and goods and for sale or transfer of water rights; notice of application and hearing.

     1. A utility shall submit an application to the Commission requesting approval for:

     (a) The sale, transfer, or other disposal of essential real property and goods, other than water rights, that have a replacement value of more than $5,000 which are not being replaced immediately by the utility; and

     (b) Any sale or transfer of water rights, other than a transfer which does not remove water rights from the control of the utility for use within the utility’s certificated service area.

     2. An application must include:

     (a) A description of the essential real property and goods proposed to be sold or transferred which includes the cost of acquisition of the essential real property and goods, the accumulated net depreciation, if any, and the net book value of the essential real property and goods;

     (b) The consideration which the utility expects for the essential real property and goods;

     (c) A copy of a lease, sales agreement, or other document concerning the sale or transfer of the essential real property and goods;

     (d) An analysis of the present and future effect which the utility believes the disposal of the essential real property and goods will have on the ability of the utility to continue to provide reasonably continuous and adequate service;

     (e) A description of any real property or goods that the utility has or will acquire to replace the essential real property and goods;

     (f) A summary of the accounting and regulatory treatment for the proposed transaction; and

     (g) If a request to transfer, dispose, or encumber water rights is made, a budget for the water rights required for the expansion or modification of the utility’s certificated service area, in accordance with existing zoning ordinances, before and after the proposed action.

     3. The Commission will publish notice of the application if service will be impaired or a gain or loss of more than $25,000 is expected. If a hearing is scheduled, the Commission will publish notice in a local newspaper and the utility shall mail written notice of the hearing to each of its customers.

     4. A gain on the sale or disposition of the assets of a utility must accrue to the benefit of the customers.

     5. The sale or transfer of a utility or a portion of the utility’s operations must be conducted in accordance with NRS 704.390 and 704.410.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93)—(Substituted in revision for NAC 704.998)