NAC538.746. Nonperformance: Notice; suspension and reinstatement of allocation of power; termination of allocation and reallocation of power.

     1. If a contractor fails or refuses to perform any of its obligations under any of its contracts with the Commission, including, without limitation, any agreement confirming the purchase of supplemental power from any source, and the Executive Director determines that the failure or refusal may expose the Commission to significant liability, the Executive Director shall provide written notice of the nonperformance to the contractor.

     2. If the contractor fails or refuses to cure the nonperformance within 15 days after the date of the written notice, the Commission may, after notifying the contractor, suspend the contractor’s allocation of hydroelectric power under NAC 538.340 to 538.746, inclusive, and discontinue furnishing electric service specified in its contracts with the contractor pending any further action taken by the Commission pursuant to this section.

     3. Within 30 days after the suspension of the contractor’s allocation of hydroelectric power, the contractor may petition the Commission for the reinstatement of the allocation. The Commission will hold a hearing on the petition within 10 days after providing notice of the hearing as required by NAC 538.075 to 538.330, inclusive.

     4. If the contractor fails to file a petition for reinstatement in a timely manner or if, after a hearing on such a petition, the Commission denies the petition, the Commission may permanently terminate the contractor’s allocation of hydroelectric power and permanently discontinue electric service to the contractor.

     5. Upon the permanent termination of a contractor’s allocation of hydroelectric power, the Commission will reallocate the hydroelectric power as authorized by law.

     6. This section does not preclude the Commission from pursuing at any time any other remedy for breach of contract that is available to the Commission.

     (Added to NAC by Colorado River Comm’n by R112-02, eff. 9-20-2002)