NAC704.8898. Temporary renewable energy development program: Powers and duties of utility provider regarding TRED charge; determination of TRED charge.

     1. Once a TRED program is established by order of the Commission and the utility provider has established a TRED trust, the utility provider shall, concurrent with the filing of its next annual deferred energy application, seek Commission authorization to establish or continue, as revised, a temporary renewable energy development charge.

     2. The TRED charge must be determined in accordance with the following formula:

TRED CHARGE = PC + RA

                                                                                           TE

Where:

     PC = the 12-month projected cost of renewable energy or portfolio energy credits to be delivered to the utility provider from new renewable energy projects eligible for the TRED program, determined as the sum from all eligible new renewable energy projects of the product of the 12-month projected production from each eligible new renewable energy project at the rates set forth in each of the Commission-approved renewable energy or portfolio energy credits contracts for each eligible new renewable energy project, plus the projected tax liability for the 12 months for the TRED trust.

     RA = the adjustment to increase or decrease the reserve, which must equal the sum of the reserves for each of the renewable energy or portfolio energy credits contracts approved for payment in accordance with NAC 704.8897.

     TE = the historical Nevada jurisdictional kilowatt-hour sales reflected in the electric utility’s concurrent deferred energy application.

     3. The utility provider shall seek review of each element of the TRED charge at least once each year, concurrent with the filing by the utility provider of its annual deferred energy application.

     4. The utility provider may seek interim review of one or more elements of the TRED charge where experienced production from eligible new renewable energy projects or experienced revenues collected pursuant to the TRED charge differ materially from projected production from new renewable energy projects associated with Commission-approved renewable energy contracts or with projected revenues collected pursuant to the TRED charge, causing either inadequate or excess reserves.

     5. Once the TRED charge is established pursuant to this section, that amount must be collected by the utility provider on behalf of the TRED trust until that amount is revised pursuant to subsection 3 or 4 or is revised after the participation of a new renewable energy project is terminated pursuant to NAC 704.8899.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004; A by R064-10, 10-15-2010)