NAC704.9489. Requirements for action plan.

     1. Each resource plan of a utility must include a detailed action plan based on an integrated analysis of the demand side plan and supply plan of the utility. In its action plan, the utility shall specify all its actions that are to take place during the 3 years commencing with the year following the year in which the resource plan is filed. The action plan must contain:

     (a) An introductory section that explains how the action plan fits into the longer-term strategic plan of the utility.

     (b) A list of actions for which the utility is seeking the approval of the Commission.

     (c) A schedule for the acquisition of data, including planned activities to update and refine the quality of the data used in forecasting.

     (d) A specific timetable for acquisition of options for the supply of electric energy and for programs for energy efficiency and conservation.

     (e) If changes in the methodology are being proposed, a description fully justifying the proposed changes, including an analysis of the costs and benefits. Any changes in methodology that are approved by the Commission must be maintained for the period described in the action plan.

     (f) A section describing any plans of the utility to acquire additional modeling instruments.

     (g) A section for the utility’s program for energy efficiency and conservation, including:

          (1) A description of continued planning efforts;

          (2) A plan to carry out and continue selected measures for energy efficiency and conservation that have been identified as desirable; and

          (3) Any impacts of imputed debt calculations associated with energy efficiency contracts in the preferred plan.

     (h) A section for the utility’s program for acquisition of resources for the supply of electric energy for the period covered by the action plan, including:

          (1) The immediate plans of the utility for construction of facilities or long-term purchases of power;

          (2) The expected time for construction of facilities and acquisition of long-term purchases of power identified in subparagraph (1);

          (3) The major milestones of construction; and

          (4) Any impacts of imputed debt calculations associated with renewable energy contracts or energy efficiency contracts in the preferred plan.

     2. The action plan must contain an energy supply plan.

     3. The action plan must contain a budget for planned expenditures suitable for comparing planned and achieved expenditures. Expenses must be listed in a format that is consistent with the categories and periods to be presented in subsequent filings. The budget must be organized in the following categories:

     (a) Forecasting of loads;

     (b) Energy efficiency and conservation;

     (c) Plan for supply; and

     (d) Financial plan.

     4. The action plan must contain schedules suitable for comparing planned and actual activities and accomplishments. Milestones and points of decision committing major expenditures must be shown.

     5. The action plan must contain a renewable energy zone transmission action plan for serving one or more of the renewable energy zones designated by the Commission or an explanation of why no renewable energy zone transmission action plan is contained in the action plan. In addition to the other action plan requirements set forth in this section, the renewable energy zone transmission action plan must include, with supporting data and documentation, for each action item recommended by the utility:

     (a) For permitting, routing study and right-of-way acquisition expenses, evidence addressing:

          (1) How such expenditures will facilitate compliance with NRS 704.7821 in a manner consistent with NAC 704.8901 to 704.8937, inclusive; and

          (2) All other benefits Nevada retail ratepayers will derive from the expenses;

     (b) For proposed construction and expansion of transmission facilities:

          (1) Evidence of how the proposed construction and expansion will facilitate compliance with NRS 704.7821 in a manner consistent with NAC 704.8901 to 704.8937, inclusive;

          (2) A listing and description, including detailed cost estimates and development schedules, of the transmission facilities recommended by the utility for construction or expansion;

          (3) A listing and description of transmission alternatives that were considered by the utility, including transmission development partnerships;

          (4) Data and economic analysis that supports the transmission projects recommended by the utility, including, without limitation, a comparison of the levelized cost, including transmission, of procuring renewable resources from the renewable energy zones proposed to be served by the utility’s recommended transmission projects to other renewable resource options, including those that are located in and out of renewable energy zones designated by the Commission;

          (5) Evidence of the financial commitments from developers of renewable energy projects located in the affected renewable energy zones;

          (6) An estimate of the level of capacity and energy that the utility expects to utilize from the affected renewable energy zones in the next 20 years, commencing with the year following the year in which the resource plan is filed; and

          (7) The estimated time frame to fully utilize the capacity of the construction and expansion of transmission facilities recommended by the utility; and

     (c) In addition to the renewable energy zone transmission action plan requirements set forth in paragraph (b), for construction and expansion of transmission infrastructure that will serve both Nevada retail ratepayers and export markets outside of Nevada:

          (1) Evidence that any renewable energy developers wishing to export energy outside of Nevada have a buyer for their energy and that the buyer has a means of delivering the energy from the transmission system of the Nevada utility to the point of delivery;

          (2) A strategic plan to mitigate the potential financial risks to Nevada retail ratepayers associated with stranded investment and infrastructure that is not intended to provide service to Nevada retail ratepayers, including, without limitation, safeguards to monitor the financial risk to Nevada’s retail ratepayers and criteria to trigger an amendment to the renewable energy transmission action plan should changes in circumstance occur which could expose Nevada retail ratepayers to such risks; and

          (3) Identification of the potential resources in the renewable energy zones, including the resources under contract, resources under development, known completion dates and the known amount of capacity and energy to be produced by renewable energy projects in the affected renewable energy zones for customers outside of Nevada.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004; A by R167-05, 2-23-2006; R042-10, 7-22-2010; R088-10, 12-16-2010)