NAC704.8899. Temporary renewable energy development program: Closure to new renewable energy projects; termination of participation by all new renewable energy projects.

     1. A utility provider may apply to the Commission for authority to close a TRED program to new renewable energy projects once the utility provider has achieved an investment grade credit rating as determined by either Moody’s Investors Service, Inc., or Standard and Poor’s Rating Services and has maintained that credit rating for 24 consecutive months.

     2. The Commission will grant an application to close a TRED program only after finding that the creditworthiness of the utility provider is sufficiently restored so that closure of the TRED program to new renewable energy projects is in the public interest.

     3. An order issued by the Commission closing a TRED program to new renewable energy projects will not be effective as to any new renewable energy project that has previously been accepted into the TRED program and that receives remittance from the TRED trust with proceeds from the TRED charge until the earlier of:

     (a) The expiration or termination of the original Commission-approved renewable energy contract between the utility provider and the new renewable energy project, in which case the participation of the new renewable energy project in the TRED program will, without further process, be terminated; or

     (b) The original financing, including debt, equity, or both debt and equity, as applicable, entered into by the new renewable energy project upon completion of construction of the project has been fully satisfied pursuant to its original terms, in which case the new renewable energy project has an affirmative obligation to inform the Commission within 30 days after satisfaction of financing. The new renewable energy project must apply to the Commission for an order allowing the new renewable energy project to remain in the TRED program. If the new renewable energy project does not apply to remain in the TRED program, the participation of the new renewable energy project in the TRED program will be terminated without further process.

     4. When the participation of all new renewable energy projects in the TRED program has been terminated, the TRED charge will be terminated and the TRED trust will be instructed to first remit any balance in the TRED trust to offset any reserves advanced by the utility provider to the TRED trust. The utility provider shall then apply any excess or shortfall from the TRED trust to the utility provider’s then current deferred energy balance. In the utility provider’s next deferred energy filing, the utility provider shall establish a new base tariff energy rate that reflects the utility provider’s estimated annual cost of purchasing power from new renewable energy projects formerly included in the TRED program.

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