NAC703.2461. Certified adjustments.

     1. Adjustments may be certified up to 6 months beyond the period of testing pursuant to subsection 3 of NRS 704.110. Adjustments must be known and measurable with reasonable accuracy at the time of filing the original application. No new rates, fares or charges may be placed into effect until the changes have been experienced and certified by the applicant to the Commission.

     2. Adjustments that may be certified and reported in an application for a rate increase in statement I include, but are not limited to, the following items:

     (a) The costs of new securities as defined in NRS 704.322, and the associated expense for interest as an adjustment to the calculation of federal income tax;

     (b) Adjustments in the rate base that reflect increased investments in facilities used and useful in operations of the utility and the deduction of the appropriate amounts from construction work in progress as a factor in allocating interest costs between departments;

     (c) Operating revenues based on sales calculated as described in NAC 703.2355; and

     (d) Expenses which are:

          (1) Costs for labor, pensions, benefits and taxes, when such taxes are a direct result of a change in the rate per unit of costs for labor;

          (2) Costs for research and development;

          (3) Property taxes;

          (4) Depreciation;

          (5) Insurance; and

          (6) Rent.

     3. Each adjustment must also include a calculation of the appropriate federal income tax.

     [Pub. Service Comm’n, Gen. Order 3 Rule 16 § 52, eff. 10-14-82]—(NAC A 1-6-84; A by Pub. Utilities Comm’n by R036-09, 11-25-2009)