NAC701B.685. Application for incentives; categories of host customers; establishment by Commission of rate of incentive payment; payment of incentives; proposal of incentive levels; assignment of portfolio energy credits.

     1. The utility shall offer to a host customer an incentive that is paid over a period of 5 years. The incentive must be based upon the metered production of electricity by the waterpower energy system. The total amount of the incentive paid to a host customer must not exceed 50 percent of the installed cost of the waterpower energy system of the host customer. Any customer of a utility that receives retail electric service from the utility may apply for an incentive. A host customer may apply for the incentive or a system owner may apply for the incentive. The project site must be located in the service territory of the utility.

     2. A host customer must, based upon the nature of the host customer, be designated as one of the following categories:

     (a) Public entity;

     (b) Low-income and nonprofit;

     (c) Residential and small commercial; or

     (d) Large commercial and industrial.

     3. The rate of the incentive payment offered pursuant to subsection 1 must be established by the Commission in the proceeding to review the annual plan of a utility. The utility shall include in its first annual plan filed after February 26, 2014, proposed incentive levels for each category and a detailed procedure and schedule for the payment of incentives. The Commission may approve the proposed incentive levels, in whole or in part, or prescribe incentive levels other than those proposed by the utility. The utility may, in a subsequent annual plan, propose to modify any incentive level approved by the Commission pursuant to this subsection. The Commission may approve the proposed modification, in whole or in part, or prescribe an incentive level other than the incentive level proposed by the utility.

     4. A contract to receive an incentive paid over a period of 5 years executed pursuant to this section must not be executed on or after January 1, 2021. The contract must not provide for the payment of the incentive, or any portion thereof, after December 31, 2025. The incentive must be paid on a quarterly basis and must be paid directly to the host customer or third-party assignee of the host customer.

     5. The utility shall not issue a reservation notice to a host customer if the incentive that would be paid under the notice would cause the incentive expenditure cap established pursuant to paragraph (b) of subsection 2 of NRS 701B.005 to be exceeded.

     6. A waterpower energy system with a capacity of more than 500 kilowatts is not eligible to receive an incentive.

     7. If a host customer installs a waterpower energy system that has greater kilowatt capacity than the amount of kilowatts in its confirmed reservation, the host customer must receive the incentive level in its confirmed reservation for only the kilowatt capacity described in the confirmed reservation.

     8. Portfolio energy credits generated by a host customer participating in the Program must be assigned to the utility pursuant to NRS 701B.870 and 704.775.

     9. As used in this section:

     (a) “Low-income and nonprofit” means a category of host customer that is:

          (1) An entity that owns publicly subsidized housing;

          (2) A nonprofit corporation or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c)(3);

          (3) An entity eligible for low-income housing credits pursuant to 26 U.S.C. § 42;

          (4) A person whose income does not exceed 80 percent of the median family income for the county in which the person resides, subject to an adjustment for any area with unusually high or low median incomes or housing costs; or

          (5) A Title I school.

     (b) “Public entity” means a category of host customer that is:

          (1) A department or agency of a state or local government;

          (2) A public school district;

          (3) An institute of higher education that is part of the Nevada System of Higher Education;

          (4) An Indian tribe or tribal organization; or

          (5) A corporation for public benefit.

     (c) “Title I school” has the meaning ascribed to it in NRS 385.3467.

     (Added to NAC by Pub. Utilities Comm’n by R186-09, eff. 4-20-2010; A by R122-13, 2-26-2014)