NAC704.518. Rates and charges: Schedule; contract for special services; customer subject to schedule or contract; establishment by utility; exemption from certain provisions.

     1. A utility which supplies natural gas may file with the Commission a schedule to be applied to generating, industrial and large commercial customers served by the utility. The schedule:

     (a) Must set forth the terms and conditions of service and the range of rates, or the mechanisms pursuant to which such rates may be determined; and

     (b) May include different rates for customers within the same class.

     2. A utility may provide service to a generating, industrial or large commercial customer pursuant to a schedule filed pursuant to subsection 1 if the customer notifies the utility in writing in a manner acceptable to the utility that the customer wishes to be billed pursuant to the schedule and the customer has demonstrated to the utility that:

     (a) The customer is capable of using a fuel other than natural gas; or

     (b) A bona fide alternative to purchasing service from the utility is available to the customer.

     3. If a utility which seeks to transport natural gas for or sell natural gas to a generating, industrial or large commercial customer:

     (a) Does not have a schedule approved by the Commission on file with the Commission pursuant to subsection 1;

     (b) Seeks to charge a rate that is outside of the limits established by the schedule of the utility approved for transporting natural gas for or selling natural gas to a generating, industrial or large customer; or

     (c) Seeks terms and conditions of service outside those set forth in the schedule of the utility approved for transporting natural gas for or selling natural gas to a generating, industrial or large commercial customer,

Ê the utility shall file with the Commission an application for the approval of a contract for special services between the utility and the generating, industrial or large commercial customer. A contract for special services must specify the method, terms, conditions and rates by which the services are to be rendered to the customer. A utility shall not provide service to a generating, industrial or large customer pursuant to a contract of special services until the contract is approved by the Commission.

     4. A utility may provide service to a generating, industrial or large commercial customer pursuant to a contract for special services if the customer notifies the utility in writing in a manner acceptable to the utility that the customer wishes to be billed pursuant to such a contract and the customer has demonstrated to the utility that:

     (a) The customer is capable of using a fuel other than natural gas; or

     (b) A bona fide alternative to purchasing service from the utility is available to the customer.

     5. The rates and charges under a schedule or a contract for special services filed pursuant to this section must be established by the utility which supplies natural gas after consultation with each affected customer. The utility shall consider the value to the customer of using natural gas as opposed to using an alternative fuel and the cost to the utility of providing the service.

     6. Filings, pursuant to NAC 704.516 to 704.528, inclusive, are exempt from the provisions of NRS 704.100 and 704.110, except that any tariff, schedule or contract for special services that is filed is subject to the provisions of NRS 704.100 and 704.110 governing the time in which the Commission must take action on such filings.

     7. As used in this section:

     (a) “Bona fide alternative” means an option available to a customer:

          (1) Which is economically and operationally feasible; and

          (2) For which the cost to the customer to bypass the system of the utility is less than the marginal cost needed for the utility to serve that customer.

     (b) “Contract for special services” means a contract which is filed by a utility in lieu of a schedule and which specifies the methods, terms, conditions and rates by which services are to be rendered to a generating, industrial or large commercial customer.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97; R047-02, 10-24-2002)