NAC408.361. Materials and supplies: Cost of rehabilitation of facility reimbursable.

     1. The costs of materials and supplies are reimbursable. Materials and supplies must be furnished from the utility’s stock, if available, except that they may be obtained from other sources near the project if they are available at a lower cost.

     2. If the materials and supplies are not available from the utility’s stock, they may be purchased pursuant to competitive bids or existing continuing contracts. Small quantities of materials and supplies and proprietary products used in the utility’s operation which are necessary for the maintenance of the system’s compatibility may be excluded from the requirements of this section.

     3. The Department will not require a utility to reduce its standards for materials used for permanent changes to a facility which are required by a project of the Department.

     4. Materials and supplies which are:

     (a) Furnished from the utility’s stock must be billed at the prices for which they were purchased.

     (b) Not furnished from the utility’s stock must be billed according to the cost charged to the utility, including delivery to the site of the adjustment or relocation.

     5. A reasonable cost for inspecting or testing a plant may be included in the cost of the materials and supplies.

     6. The computation of the costs of materials and supplies must include a deduction for any offered discount, rebate or allowance.

     7. Any sales or excise tax paid by the utility for its materials and supplies may be reimbursed if payment of the sales or excise tax is required by law or ordinance.

     8. The cost of rehabilitating a utility’s facility to comply with the requirements of the project are reimbursable if the cost does not exceed the cost to replace the facility.

     (Added to NAC by Dep’t of Transportation, eff. 1-6-95)