NAC704.8885. Long-term portfolio energy credits contracts, long-term renewable energy contracts and energy efficiency contracts: Review by Commission; criteria for approval.

     1. If a utility provider executes a long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract, the utility provider shall submit the contract to the Commission for approval. The contract shall be deemed to be a long-term purchase obligation for the purposes of NAC 704.9005 to 704.9525, inclusive, and the utility provider shall submit the contract to the Commission for approval in accordance with the provisions of those sections.

     2. To approve a long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract executed by a utility provider, the Commission must determine that the terms and conditions of the contract are just and reasonable. In making its determination, the Commission will consider, as applicable and without limitation:

     (a) The reasonableness of the price for the electricity based on the factors set forth in NAC 704.8887;

     (b) The term of the contract;

     (c) The location of each portfolio energy system or efficiency measure that is subject to the contract;

     (d) The use of natural resources by each renewable energy system that is subject to the contract;

     (e) The firmness of the electricity to be delivered and the delivery schedule;

     (f) The delivery point for the electricity;

     (g) The characteristics of similar renewable energy systems;

     (h) The requirements for ancillary services;

     (i) The unit contingent provisions;

     (j) The system peak capacity requirements of the utility provider;

     (k) The requirements for scheduling;

     (l) Conditions and limitations on the transmission system;

     (m) Project insurance;

     (n) The costs for procuring replacement power in the event of nondelivery;

     (o) Information verifying that each renewable energy system which is subject to the contract transmits or distributes or will transmit or distribute the electricity that it generates from renewable energy in accordance with the requirements of NRS 704.7815;

     (p) For each owner and for each operator of a renewable energy system that is subject to the contract, the total number of renewable energy systems that each such owner and each such operator is or has been associated with as an owner or operator, including, without limitation, all renewable energy systems that are actively being constructed by or have been constructed by the owner or operator;

     (q) For each renewable energy system that is subject to the contract, the points of interconnection with the electric system of the utility;

     (r) The interconnection priority which has been established for the available transmission capacity of the utility provider for all proposed renewable energy systems that will interconnect and begin commercial operation within the 3-year period immediately following the date on which the contract is submitted for approval;

     (s) Any requests for transmission service that have been filed with the utility provider;

     (t) For each renewable energy system that is subject to the contract, any evidence that an environmental assessment, an environmental impact statement or an environmental impact report is being completed or has been completed with regard to the renewable energy system, or any evidence that a contract has been executed with an environmental contractor who will prepare such an assessment, statement or report within the 3-year period immediately preceding the date on which the renewable energy system is projected to begin commercial operation;

     (u) Whether any required permits have been acquired from or any applications for such permits have been filed with the appropriate governing agencies within the 3-year period immediately preceding the date on which the renewable energy system is projected to begin commercial operation;

     (v) Whether any applications for developmental rights have been filed with the appropriate federal agencies, including, without limitation, the United States Bureau of Land Management, where the granting of such developmental rights is not contingent upon a competitive bidding process;

     (w) For each renewable energy system that is subject to the contract, any evidence that establishes rights of ownership, possession or use concerning land or natural resources, including, without limitation, deeds, land patents, leases, contracts, licenses or permits concerning land, geothermal drilling rights or other rights to natural resources; and

     (x) Whether the utility provider has any economical dispatch rights.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R167-05, 2-23-2006; R064-10, 10-15-2010)