NAC704.9492. Rates for long-term avoided cost: Inclusion of certain information in resource plan; estimation; specification of proposed limits concerning availability.

     1. A utility shall file, as part of its resource plan, the methodology for estimating the rates for long-term avoided cost of the utility, including the capacity and energy components. The rates for long-term avoided cost must be based upon the utility’s preferred plan and be consistent with 18 C.F.R. § 292.304(a), (b), (c) and (e).

     2. The estimated rate for long-term avoided cost must be established for various sizes of megawatt blocks, except that:

     (a) If the utility has a peak demand of at least 1,000 megawatts, the stated blocks must not exceed 100 megawatts; and

     (b) If the utility has a peak demand of less than 1,000 megawatts, the stated blocks must not exceed 10 percent of the system peak.

     3. The components for estimated long-term avoided cost capacity and energy rate must be stated on a cents per kilowatt-hour basis for daily and seasonal peak and off-peak periods and in such a manner that rates for various contract periods may be calculated. At a minimum, the utility shall provide estimated rates for long-term avoided cost for a 20-year contract and the long-term avoided cost by year for 5 years commencing in the year following the filing of the resource plan.

     4. In developing the estimated rates for long-term avoided cost, the proposed rates must not be applied to renewable energy or to energy that is subject to the qualified energy recovery process as defined in NRS 704.7809.

     5. The utility shall specify its proposed limits concerning the availability of the rates for long-term avoided cost.

     6. The resource plan of the utility must include the analyses and calculations used to determine the proposed rates.

     7. The resource plan must include a description of the methodology that will be used to derive the rates for long-term avoided costs from the solicitation of proposals performed pursuant to subsection 5 of NAC 704.9496.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)