NAC704.95245. Accounting for and recovery of costs of new utility facilities constructed or acquired and owned pursuant to emissions reduction and capacity replacement plan.

     1. For each new utility facility constructed or acquired and owned by an electric utility that primarily serves densely populated counties pursuant to an emissions reduction and capacity replacement plan approved by the Commission, the utility shall create a regulatory asset or liability account for each facility at the time it is placed into operation before inclusion in general rates.

     2. Within each such regulatory asset or liability account, the utility shall begin calculating and recording the following costs the month after the asset has been placed into plant in service:

     (a) Carrying charges reflecting the most recently authorized rate of return on net plant balance of the facility constructed or acquired and owned;

     (b) The depreciation expense recorded on that facility;

     (c) All expenses incurred by the utility to operate and maintain the facility; and

     (d) Carrying charges on the regulatory asset or liability balance which reflect the most recently authorized rate of return.

     3. The utility shall submit the regulatory asset or liability accounts to the Commission in the next general rate case necessary to clear the accumulated balance. The utility shall include in the request for recovery:

     (a) A proposed period for recovery and amortization of the regulatory asset or liability; and

     (b) A request for an amount necessary to recover a return on the unamortized balance accumulated as of the end of the test period or certification period, whichever is later.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)