NAC704.8881. Determination of whether provider complied with portfolio standard; carry forward of excess kilowatt-hours; notice of noncompliance; hearing; resolution of deficiency; administrative fines and other administrative action.

     1. Not later than 30 days after the date on which a provider submits its annual report, the Commission will issue an order stating whether the provider complied with its portfolio standard during the most recently completed compliance year.

     2. If the Commission determines that the provider complied with its portfolio standard during the most recently completed compliance year, the Commission will determine whether the provider is authorized to carry forward any excess kilowatt-hours pursuant to NRS 704.7828. If the Commission determines that the total number of kilowatt-hours which the provider generated, acquired or saved from portfolio energy systems or efficiency measures during the most recently completed compliance year exceeded the total number of kilowatt-hours which the provider needed to comply with its portfolio standard for that compliance year:

     (a) The Commission will state in its order the number of excess kilowatt-hours which the provider is authorized to carry forward from that compliance year; and

     (b) The provider may use those excess kilowatt-hours to comply with its portfolio standard for any following compliance year.

     3. If the Commission determines that the provider did not comply with its portfolio standard during the most recently completed compliance year, the Commission will:

     (a) State in its order the number of kilowatt-hours by which the provider failed to comply with its portfolio standard; and

     (b) Issue a notice of noncompliance and schedule a hearing on the matter.

     4. At the hearing, the provider has the burden to prove that it complied with its portfolio standard during the most recently completed compliance year.

     5. Except as otherwise provided in NAC 704.8831 to 704.8899, inclusive, if, after the hearing, the Commission determines that the provider did not comply with its portfolio standard during the most recently completed compliance year, and the Commission has not exempted the provider pursuant to NRS 704.7821 or 704.78213, the Commission will:

     (a) Proceed pursuant to NRS 704.7828; and

     (b) In any order requiring a provider to carry forward a deficiency, set forth the terms and conditions for resolution of the deficiency, except that a deficiency will not be applied to any determination of compliance with the portfolio standard set forth in NRS 704.7821 or 704.78213, as applicable, for subsequent compliance years.

     6. While resolving any deficiency, a provider shall continue to meet its portfolio standard for the current compliance year.

     7. In determining whether to impose an administrative fine or take other administrative action against the provider, the Commission will consider whether the provider should have built its own renewable energy systems to comply with its portfolio standard.

     8. If the Commission imposes an administrative fine that is assessed against a provider on each kilowatt-hour by which the provider failed to comply with its portfolio standard, the Commission will calculate the administrative fine, on a per kilowatt-hour basis:

     (a) For a utility provider, in an amount that is not less than the difference between the just and reasonable average cost per kilowatt-hour to acquire or save electricity pursuant to renewable energy contracts or energy efficiency contracts and the overall average cost per kilowatt-hour to generate, acquire and save electricity that is incurred by the utility provider.

     (b) For a nonutility provider, in an amount that is not less than the difference between the just and reasonable average cost per kilowatt-hour to acquire or save electricity pursuant to renewable energy contracts or energy efficiency contracts and the overall average cost per kilowatt-hour to generate, acquire and save electricity that is incurred by a utility provider designated by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R167-05, 2-23-2006; R198-09, 1-13-2011)