NAC704.9714. Costs of implementing substantive programs: Accounting; recovery of costs.

     1. All costs of implementing the substantive conservation and energy efficiency programs included in a conservation and energy efficiency plan accepted by the Commission must be accounted for in the books and records of the gas utility separately from amounts attributable to any other activities. All accounts must be maintained in such a manner as will allow costs attributable to specific programs to be readily identified. These costs must be segregated into the same categories as specified in the budget for the 3-year planning period.

     2. The gas utility may recover all just and reasonable costs for implementing substantive conservation and energy efficiency programs included in an application that the Commission has accepted either as part of the gas utility’s conservation and energy efficiency plan or as modified in the gas utility’s annual conservation and energy efficiency plan report. These costs may include, without limitation, costs for labor, overhead, materials, incentives paid to customers, advertising, marketing, measurement, verification and evaluation.

     3. To recover costs incurred in implementing substantive conservation and energy efficiency programs, the gas utility must:

     (a) Calculate, on a monthly basis, the costs incurred in implementing each program since the end of the period;

     (b) Record the total cost of implementing each program, as calculated in paragraph (a), in a separate subaccount of FERC Account No. 182.3 for each program and record an offset in the appropriate subaccount of other FERC accounts;

     (c) Maintain subsidiary records of the subaccounts of FERC Account No. 182.3 for each program which must clearly delineate all costs incurred by the gas utility in implementing each program accepted by the Commission;

     (d) Apply a carrying charge at the rate of 1/12 of the authorized overall rate of return to the current balance in the subaccounts of FERC Account No. 182.3 for each program not included in the rate base; and

     (e) Clear any balance accumulated in the subaccounts of FERC Account No. 182.3 for each program in the manner set forth in subsection 4 as a component of an application by the gas utility to change rates.

     4. For the purposes of paragraph (e) of subsection 3, to clear a balance:

     (a) The Commission will adjust the rate to amortize the balance over a 3-year period, unless otherwise specified by the Commission;

     (b) The gas utility must begin amortizing costs on the date that the change in general rates becomes effective;

     (c) The gas utility must include the balance in the subaccounts of FERC Account No. 182.3 for each program, including carrying charges, in the rate base as of the date that ends the period used in the application filed by the gas utility pursuant to NRS 704.110; and

     (d) If calculating the revenue requirements under the equity adder methodology, the utility must base the rate of return to be applied to the balance in the subaccounts of FERC Account No. 182.3 for each program that the utility has carried out on the most recently authorized return on equity plus 5 percent.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008; A by R051-09, 1-28-2010)