NAC703.2691. Certified adjustments.

     1. The applicant may certify in statement I to the following experienced adjustments for up to 6 months beyond the recorded test period, as provided in subsection 3 of NRS 704.110. 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 interest expense as an adjustment to federal income tax calculation;

     (b) Adjustments in the rate base that reflect increased investments in facilities used and useful in operations of the competitive supplier that is an incumbent local exchange carrier 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 703.2611; and

     (d) Expenses which are:

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

          (2) Costs for research and development;

          (3) Property taxes;

          (4) Depreciation;

          (5) Insurance; and

          (6) Rent.

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

     [Pub. Service Comm’n, Gen. Order 3 Rule 16-A § 40, eff. 10-14-82]—(NAC A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008; R036-09, 11-25-2009)