Opinion ID: 2631746
Heading Depth: 1
Heading Rank: 28

Heading: We affirm the remainder of the PUCN's disallowances

Text: Nevada Power argues that the PUCN improperly excluded rebuttal evidence concerning the disallowances associated with the 2001 purchases intended to dispel any doubts raised as to the prudency of those transactions. We disagree. As required by regulation, Nevada Power filed evidence in support of its direct case that its costs were prudently incurred. That case included a description of the history of power regulation, deregulation, and the instability of the energy market. The interveners filed evidence in support of their argument that Nevada Power's costs were imprudently incurred. Nevada Power then filed prepared rebuttal testimony containing information that allegedly rebutted the interveners' evidence of imprudence. After Nevada Power filed its rebuttal testimony, MGM filed a motion to strike Nevada Power's entire rebuttal case, or in the alternative, portions of the rebuttal case. After considering MGM's motion and Nevada Power's response, the PUCN ruled that Nevada Power's rebuttal testimony was an improper attempt to put on a second direct case. More specifically, the PUCN stated, From reviewing the proposed rebuttal testimony, the one thing that appears clear is under the guise of rebuttal it appears that we have created a second direct case. As opposed to with the initial direct case moving forward with a burden of proof, it appears that this has been looked at as if there was a presumption of prudency, and therefore, where other people bring up arguments against it, the wholesale wave comes in. The PUCN staff recommended that the PUCN exclude the rebuttal evidence because it was duplicative of evidence already presented, it expanded on points not challenged by the interveners, and it confused portions of the record. When ruling on Nevada Power's rebuttal evidence, the PUCN did not reference the staff's recommendations, but instead focused on the propriety of the prudence presumption and how Nevada Power's rebuttal testimony should have been received on direct. This evidentiary interpretation, however, improperly applies the rebuttable prudence presumption. Despite the PUCN's improper application of the rebuttable prudence presumption, however, a review of the proposed rebuttal testimony excluded by the PUCN confirms the staff's recommendation that Nevada Power's evidence did not rebut the claim of imprudence concerning the 2001 practices. Specifically, the rebuttal testimony duplicated evidence already presented and addressed the history of power regulation and the problems associated with power purchasing decisions made during 1999-2001. While informative, this evidence was repetitive and did not specifically rebut doubts as to the prudency of any of the 2001 purchases. Therefore, Nevada Power has not demonstrated that the PUCN's decision to exclude the rebuttal evidence prejudiced its substantial rights under NRS 703.373(6). Accordingly, we affirm that portion of the district court's order affirming the PUCN's disallowance of the February, April, and September 2001, purchases, as well as the 2001 off-peak transaction.