NAC704.150. Carrying charges.

     1. Except as otherwise provided in subsection 3, a carrying charge must be computed on the current average monthly debit balance in the subaccount of FERC Account No. 182.3 or credit balance in the subaccount of FERC Account No. 254, for electric operations, or FERC Account No. 191, for gas operations, and must be respectively debited or credited to the account at the carrying charge rate of one-twelfth of the overall rate of return as authorized by the Commission for the particular department or division of the electric utility or gas utility, adjusted for the federal income tax applicable to the equity component of the overall rate of return computed at the applicable statutory rate. The rate of the carrying charge must be applied to the entire balance in the subaccount of FERC Account No. 182.3 or the subaccount of FERC Account No. 254, for electric operations, or FERC Account No. 191, for gas operations, net of applicable accumulated deferred income taxes, as follows:

Carrying charge = (carrying charge rate) x (average deferred energy balance for the month) x (1 - statutory income tax rate)

     2. The contra entries for the carrying charge must be made to:

     (a) FERC Account No. 419, if a credit; or

     (b) FERC Account No. 431, if a debit.

     3. If, in any month, the Nevada jurisdictional earned rate of return for an operating department of the electric utility or gas utility exceeds the overall rate of return last authorized by the Commission for that department, and if the average monthly balance in FERC Account No. 182.3, for electric operations, or FERC Account No. 191, for gas operations, is a debit, an adjustment amount will be calculated equal to the amount which exceeds the utility’s last authorized rate of return. The Nevada jurisdictional earned rate of return will be calculated quarterly using the 12-month period ending with the last month of the quarter and will apply to the carrying charge calculation in each month of that quarter. Carrying charges may accrue only on that portion of the debit balance which exceeds the adjustment amount.

     [Pub. Service Comm’n, Gen. Order 21 § 4.7, eff. 8-21-81; A 12-2-81]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07 & R073-07, 10-31-2007; R051-09, 1-28-2010)