Nevada Administrative Code › Chapter 704 - Regulation of Public Utilities Generally › ELECTRIC SERVICE › Portfolio Standard › Section 704.8897 - Temporary renewable energy development program: Duties of utility provider regarding TRED trust; duties and rights of TRED trust

Current through
				June 11, 2024
1. Within
				30 days after the issuance of an order by the Commission to establish a TRED
				program, the utility provider shall appoint a third-party professional trustee
				acceptable to the Commission and shall take all actions necessary to initiate a
				temporary renewable energy development trust. The TRED trust shall receive
				money collected by the utility provider from retail customers pursuant to a
				temporary renewable energy development charge and disburse that money to
				eligible new renewable energy projects. The TRED trust has the sole right to
				receive revenue generated by the TRED charge, and the right to receive such
				revenue constitutes a current property right granted to and vested in the TRED
				trust.
2. The utility provider
				shall file an executed copy of the trust agreement between the utility provider
				and the trustee of the TRED trust with the Commission for its
				approval.
3. The trust agreement
				must contain a provision establishing a minimum level of reserve for the TRED
				trust that is equal to three times the highest projected monthly payment to
				each eligible new renewable energy project for the period during which the TRED
				charge will be in effect.
4. The
				costs incurred by a utility provider to initiate and maintain a TRED trust,
				including, without limitation, the cost of reserves advanced by the utility
				provider to the TRED trust, the taxes assessed on the utility provider for
				amounts related to the TRED trust and the fees charged by the trustee, must be
				considered expenses associated with the acquisition of purchased power. The
				amount must be booked by the utility provider in a subaccount of FERC Account
				No. 182.3, if the cumulative month-end balance is a debit, or a subaccount of
				FERC Account No. 254, if the cumulative month-end balance is a credit. The
				amount may be recovered by the utility provider pursuant to the deferred energy
				accounting process set forth in NAC 704.023 to 704.195, inclusive. The utility
				provider shall use a subaccount of FERC Account No. 407.3 to offset the tax
				liability recorded in the subaccount of FERC Account No. 182.3 pursuant to this
				subsection or a subaccount of FERC Account No. 407.4 to offset the tax
				liability recorded in the subaccount of FERC Account No. 254 pursuant to this
				subsection. The utility shall record current taxes and any related deferred
				taxes in the appropriate subaccount of FERC Account Nos. 409, 410 and 411, as
				applicable.
5. Once the TRED charge
				is established by an order of the Commission issued pursuant to NAC 704.8898,
				the utility provider shall begin collecting the TRED charge from its retail
				customers. Beginning with the first full calendar week thereafter and
				continuing once each week following, the utility provider shall estimate and
				remit to the TRED trust the total amount collected pursuant to the TRED charge
				through the last calendar day of the previous collection period.
6. On the 20th calendar day of each month,
				the utility provider shall provide the trustee of the TRED trust with a
				statement showing the calculation of the amounts to be disbursed to each
				eligible new renewable energy project in accordance with its respective
				renewable energy or portfolio energy credits contracts based on the production
				of each eligible new renewable energy project during the previous calendar
				month. The TRED trust shall, within 7 calendar days after receiving the
				statement from the utility provider, remit payment to each eligible new
				renewable energy project in accordance with the statement.
Added to NAC by Pub.
				  Utilities Comm'n by R153-04, eff. 11-10-2004; A by R051-09, 1-28-2010; R064-10,
				  10-15-2010; R043-12, 11-1-2012
NRS
					 703.025,
					 704.210,
					 704.7828