NAC702.250. “Any therm of natural gas used as a source of energy to generate electricity” interpreted.

     1. For the purposes of NRS 702.160 and NAC 702.150 to 702.450, inclusive, “any therm of natural gas used as a source of energy to generate electricity” means any therm of natural gas that is:

     (a) Delivered to an electric generating plant or unit; and

     (b) Consumed to generate electricity at that plant or unit by being used as a source of energy for:

          (1) An engine, turbine or other device which drives an electric generator; or

          (2) A boiler, heat recovery steam generator or other device whose thermal output is used to generate electricity.

Ê The term does not include any therm of natural gas which is delivered to an electric generating plant or unit and which is consumed exclusively as a source of energy to support an activity other than the generation of electricity occurring at or adjacent to that plant or unit, including, without limitation, production of steam or thermal energy which is used exclusively in heating, cooling or industrial processes that do not generate electricity.

     2. If a person both consumes therms of natural gas as a source of energy to generate electricity and consumes other therms of natural gas exclusively as a source of energy to support an activity other than the generation of electricity, the person shall apply to the Commission for approval to use a methodology to allocate the therms of natural gas consumed by the person between:

     (a) Those therms of natural gas consumed as a source of energy to generate electricity; and

     (b) Those therms of natural gas consumed exclusively as a source of energy to support an activity other than the generation of electricity.

     (Added to NAC by Pub. Utilities Comm’n by R124-01, eff. 12-17-2001)