NAC704B.350. Analysis of proposed underlying contract; meetings and discussions; duty to provide and update certain data and information; methodology used by Regulatory Operations Staff.

     1. Not later than 45 calendar days after the date on which the eligible customer files an application, the Regulatory Operations Staff shall:

     (a) Perform its initial analysis of the proposed underlying contract to estimate the potential impacts of the proposed underlying contract on the electric utility and its remaining customers; and

     (b) Release the results of its initial analysis to the eligible customer, the provider, the electric utility and the Bureau of Consumer Protection.

     2. Not later than 55 calendar days after the date on which the eligible customer files an application, the Regulatory Operations Staff, the eligible customer and the electric utility shall meet, in person or telephonically, at least once to discuss the results of the initial analysis performed by the Regulatory Operations Staff and, if necessary, to exchange information, including, without limitation, the exchange of any suggested additions, modifications or deletions to the initial analysis performed by the Regulatory Operations Staff. The Bureau of Consumer Protection and the provider must be notified of each such meeting, and each may participate fully in each such meeting and in any exchange of information.

     3. Not later than 65 calendar days after the date on which the eligible customer files an application, the Regulatory Operations Staff shall:

     (a) Finalize its analysis of the proposed underlying contract. In finalizing its analysis, the Regulatory Operations Staff shall incorporate any information obtained from the eligible customer, the provider, the electric utility and the Bureau of Consumer Protection that the Regulatory Operations Staff determines will most accurately estimate the potential impacts of the proposed underlying contract.

     (b) Release the results of its finalized analysis to the eligible customer, the provider, the electric utility and the Bureau of Consumer Protection.

     (c) Submit its finalized analysis to the Commission.

     4. Not later than 80 calendar days after the date on which the eligible customer files an application, any party of record may file with the Commission an alternative analysis to the analysis performed by the Regulatory Operations Staff. Each alternative analysis must:

     (a) Identify the bases for concluding that the analysis performed by the Regulatory Operations Staff is deficient; and

     (b) Include objective information demonstrating that the methodology used by the party is valid under the range of circumstances included in the alternative analysis performed by the party.

     5. The provisions of this section do not preclude the Regulatory Operations Staff, the eligible customer, the provider, the electric utility or the Bureau of Consumer Protection from meeting or conferring as often as they deem necessary to accomplish the objectives of this section.

     6. The Regulatory Operations Staff shall identify the data and information that it will need from the electric utility and the eligible customer to carry out the provisions of this section and the format that the electric utility and the eligible customer must use to provide and update the data and information. The electric utility and the eligible customer shall provide and update the data and information in such manner and at such times as the Regulatory Operations Staff may request.

     7. The Regulatory Operations Staff shall provide the Commission and other interested parties with a detailed description of the methodology that it will use to estimate the potential impacts of the proposed underlying contract on the electric utility and its remaining customers. The description must include, without limitation:

     (a) The methodology for analyzing net costs or benefits to the electric utility and its remaining customers and for ensuring that there are no net negative impacts to the electric utility and its remaining customers. The description must identify the commercial model or algorithm for the methodology and must contain a narrative description of that commercial model or algorithm.

     (b) The assumptions to be used with the methodology, including, without limitation, the time frame for analyzing net costs or benefits to the electric utility and its remaining customers and the categories of costs to be used with the methodology.

     (c) The sources of information to be used with each category of costs identified in paragraph (b), including, without limitation, sources of information regarding:

          (1) Capacity and energy, including energy from renewable resources;

          (2) Transmission;

          (3) Distribution; and

          (4) Natural gas commodity and capacity.

     (d) Other external inputs necessary for the operation of the commercial model or algorithm identified in paragraph (a).

     (e) Any data and information obtained from the electric utility, including any updated data and information.

     8. The Regulatory Operations Staff shall provide the Commission and other interested parties with a detailed description of the information that must accompany any request by a third party to perform an independent analysis of the potential impacts of the proposed underlying contract on the electric utility and its remaining customers. The description must include, without limitation, the cost, if any, to perform such an independent analysis.

     (Added to NAC by Pub. Utilities Comm’n by R125-01, eff. 12-17-2001; A by R018-04, 11-17-2005)