NAC703.27144. Certified adjustments.

     1. The applicant may certify in Form H 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 any rate increase in Form H include, but are not limited to:

     (a) The cost of new securities, as defined in NRS 704.322, and the associated interest expense 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 the operations of the small-scale provider of last resort 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, including:

          (1) Labor costs, pensions, benefits and taxes, if 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.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008; R036-09, 11-25-2009)