NAC408.363. Materials recovered: Credit to project; sale.

     1. Materials recovered from temporary use and accepted for reuse by the utility must be credited to the project at prices charged to the project, less the loss in service life not to exceed 10 percent of the prices charged to the project.

     2. Materials recovered from a permanent facility of the utility which are accepted by the utility for return to stock must be credited to the project at the depreciated stock price for those materials at the time the materials are returned to stock.

     3. Materials recovered which are not accepted for reuse by the utility, if determined by the Department to have a net sale value, must be sold to the highest bidder by the Department or the utility after inspection and solicitation for bids. If the utility conducts the sale, it must obtain the prior written approval of the Department.

     4. The net proceeds from the disposal of salvaged materials must be credited to the project. If the utility uses a system of periodic disposal by sale, credit to the project must be at the prevailing prices as indicated by the records of the utility.

     5. If no market exists upon which to base current stock prices for used specialized equipment or materials, the utility may dispose of the equipment or materials by direct sale if it demonstrates that the sale:

     (a) Complies with its established practices;

     (b) Yields a greater value credit to the project than would likely be achieved by the disposal at a public auction or through the solicitation of bids; and

     (c) Is an arms-length transaction between nonaffiliated persons.

     6. The money from the sale, less the expenses of the sale and handling charges, must be credited to the Department.

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