NAC704.937. Inclusion in supply plan of alternative plans and list of options for supply of capacity and electric energy; criteria for selection of options; comparison of and requirements for alternative plans; identification of preferred plan.

     1. A utility’s supply plan must contain a diverse set of alternative plans which include a list of options for the supply of capacity and electric energy that includes a description of all existing and planned facilities for generation and transmission, existing and planned power purchases, and other resources available as options to the utility for the future supply of electric energy. The description must include the expected capacity of the facilities and resources for each year of the supply plan. At least one alternative plan must be of low carbon intensity and include:

     (a) The generation or acquisition of an amount of renewable energy greater than required by NRS 704.7821;

     (b) Changes to the utility’s existing fleet of resources for the generation of power;

     (c) The application of technology that would significantly reduce emissions of carbon; or

     (d) Any combination thereof.

     2. A utility shall identify the criteria it has used for the selection of its options for meeting the expected future demands for electric energy and shall explain how any conflicts among criteria are resolved.

     3. In comparing alternative plans containing different resource options, the utility shall calculate the present worth of future requirements for revenue for each alternative plan for the supply of power. A comparison of the present worth of future requirements for revenue for each alternative plan must be presented in the resource plan. As calculated pursuant to this subsection, the present worth of future requirements for revenue for each alternative plan must include, without limitation, a reasonable range of costs associated with emissions of carbon in the 20-year period of the resource plan as private costs to the utility.

     4. The utility shall calculate the present worth of societal costs for each alternative plan for the supply of power. The present worth of societal costs of a particular alternative plan must be determined by adding the environmental costs that are not internalized as private costs to the utility pursuant to subsection 3 to the present worth of future requirements for revenue.

     5. The utility shall consider for each alternative plan the mitigation of risk by means of:

     (a) Flexibility;

     (b) Diversity;

     (c) Reduced size of commitments;

     (d) Choice of projects that can be completed in short periods;

     (e) Displacement of fuel;

     (f) Reliability;

     (g) Selection of fuel and energy supply portfolios; and

     (h) Financial instruments or electricity products.

     6. The alternative plans of the utility must:

     (a) Provide adequate reliability;

     (b) Be within regulatory and financial constraints;

     (c) Meet the portfolio standard; and

     (d) Meet the requirements for environmental protection.

     7. The utility shall identify its preferred plan and fully justify its choice by setting forth the criteria that influenced the utility’s choice.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; 3-27-92; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R167-05, 2-23-2006; R173-09, 4-20-2010)