Nevada

Portfolio Standard for Renewable Energy

NRS 704.7801 Definitions. As used in NRS 704.7801 to 704.7828, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.7805 to 704.7818, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2001, 2526)

NRS 704.7805 “Portfolio standard” defined. “Portfolio standard” means a portfolio standard for renewable energy established by the commission pursuant to NRS 704.7821.

(Added to NRS by 2001, 2527)

NRS 704.7808 “Provider of electric service” and “provider” defined.

1. “Provider of electric service” and “provider” mean any person or entity that is in the business of selling electricity to retail customers for consumption in this state, regardless of whether the person or entity is otherwise subject to regulation by the commission.

2. The term includes, without limitation, a provider of new electric resources that is selling electricity to an eligible customer for consumption in this state pursuant to the provisions of chapter 704B of NRS.

3. The term does not include:

(a) This state or an agency or instrumentality of this state.

(b) A rural electric cooperative established pursuant to chapter 81 of NRS.

(d) A utility established pursuant to chapter 709 or 710 of NRS.

(e) A cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service only to its members.

(f) A landlord of a mobile home park or owner of a company town who is subject to any of the provisions of NRS 704.905 to 704.960, inclusive.

(g) A landlord who pays for electricity that is delivered through a master meter and who distributes or resells the electricity to one or more tenants for consumption in this state.

(Added to NRS by 2001, 2527; A 2001, 3273)

NRS 704.7811 “Renewable energy” defined.

1. “Renewable energy” means:

(a) Biomass;

(b) Geothermal energy;

(d) Wind.

2. The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

(Added to NRS by 2001, 2527)

NRS 704.7815 “Renewable energy system” defined. “Renewable energy system” means:

1. A facility or energy system that:

(a) Uses renewable energy to generate electricity; and

(b) Transmits or distributes the electricity that it generates from renewable energy via:

(1) A power line which is dedicated to the transmission or distribution of electricity generated from renewable energy and which is connected to a facility or system owned, operated or controlled by a provider of electric service; or

(2) A power line which is shared with not more than one facility or energy system generating electricity from nonrenewable energy and which is connected to a facility or system owned, operated or controlled by a provider of electric service.

2. A solar thermal energy system that reduces the consumption of electricity.

3. A net metering system used by a customer-generator pursuant to NRS 704.766 to 704.775, inclusive.

(Added to NRS by 2001, 2527; A 2001, 3274)

NRS 704.7818 “Retail customer” defined.

1. “Retail customer” means an end-use customer that purchases electricity for consumption in this state.

2. The term includes, without limitation:

(a) This state, a political subdivision of this state or an agency or instrumentality of this state or political subdivision of this state when it is an end-use customer that purchases electricity for consumption in this state, including, without limitation, when it is an eligible customer that purchases electricity for consumption in this state from a provider of new electric resources pursuant to the provisions of chapter 704B of NRS.

(b) A residential, commercial or industrial end-use customer that purchases electricity for consumption in this state, including, without limitation, an eligible customer that purchases electricity for consumption in this state from a provider of new electric resources pursuant to the provisions of chapter 704B of NRS.

(c) A landlord of a mobile home park or owner of a company town who is subject to any of the provisions of NRS 704.905 to 704.960, inclusive.

(d) A landlord who pays for electricity that is delivered through a master meter and who distributes or resells the electricity to one or more tenants for consumption in this state.

(Added to NRS by 2001, 2527; A 2001, 3274)

NRS 704.7821 Establishment of portfolio standard; requirements; subsidization of solar thermal energy systems; renewable energy credits; renewable energy contracts; exemptions; regulations.

1. For each provider of electric service, the commission shall establish a portfolio standard for renewable energy. The portfolio standard must require each provider to generate or acquire electricity from renewable energy systems in an amount that is:

(a) For calendar years 2003 and 2004, not less than 5 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

(b) For calendar years 2005 and 2006, not less than 7 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

(c) For calendar years 2007 and 2008, not less than 9 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

(d) For calendar years 2009 and 2010, not less than 11 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

(e) For calendar years 2011 and 2012, not less than 13 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

(f) For calendar year 2013 and for each calendar year thereafter, not less than 15 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

2. In addition to the requirements set forth in subsection 1, the portfolio standard for each provider must require that:

(a) Of the total amount of electricity that the provider is required to generate or acquire from renewable energy systems during each calendar year, not less than 5 percent of that amount must be generated or acquired from solar renewable energy systems.

(b) If the provider acquires electricity from a renewable energy system pursuant to a renewable energy contract with another party:

(1) The term of the renewable energy contract must be not less than 10 years, unless the other party agrees to a renewable energy contract with a shorter term; and

(2) The terms and conditions of the renewable energy contract must be just and reasonable, as determined by the commission. If the provider is a public utility and the commission approves the terms and conditions of the renewable energy contract between the provider and the other party, the renewable energy contract and its terms and conditions shall be deemed to be a prudent investment and the provider may recover all just and reasonable costs associated with the renewable energy contract.

3. If, for the benefit of one or more of its retail customers in this state, the provider has subsidized, in whole or in part, the acquisition or installation of a solar thermal energy system which qualifies as a renewable energy system and which reduces the consumption of electricity, the total reduction in the consumption of electricity during each calendar year that results from the solar thermal energy system shall be deemed to be electricity that the provider generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard.

4. The commission may adopt regulations that establish a system of renewable energy credits that may be used by a provider to comply with its portfolio standard.

5. Except as otherwise provided in subsection 6, each provider shall comply with its portfolio standard during each calendar year.

6. If, for any calendar year, a provider is unable to comply with its portfolio standard through the generation of electricity from its own renewable energy systems or, if applicable, through the use of renewable energy credits, the provider shall take actions to acquire electricity pursuant to one or more renewable energy contracts. If the commission determines that, for a calendar year, there is not or will not be a sufficient supply of electricity made available to the provider pursuant to renewable energy contracts with just and reasonable terms and conditions, the commission shall exempt the provider, for that calendar year, from the remaining requirements of its portfolio standard or from any appropriate portion thereof, as determined by the commission.

7. The commission shall adopt regulations for the determination of just and reasonable terms and conditions for the renewable energy contracts that a provider of electric service must enter into to comply with its portfolio standard.

8. As used in this section:

(a) “Renewable energy contract” means a contract to acquire electricity from one or more renewable energy systems owned, operated or controlled by other parties.

(b) “Terms and conditions” includes, without limitation, the price that a provider of electric service must pay to acquire electricity pursuant to a renewable energy contract.

(Added to NRS by 2001, 2528)

NRS 704.7825 Reports.

1. Each provider of electric service shall submit to the commission an annual report that provides information relating to the actions taken by the provider to comply with its portfolio standard.

2. Each provider shall submit the annual report to the commission after the end of each calendar year and within the time prescribed by the commission. The report must be submitted in a format approved by the commission.

3. The commission may adopt regulations that require providers to submit to the commission additional reports during each calendar year.

4. Each annual report and each additional report must include clear and concise information that sets forth:

(a) The amount of electricity which the provider generated or acquired from renewable energy systems during the reporting period and, if applicable, the amount of renewable energy credits that the provider acquired, sold or traded during the reporting period to comply with its portfolio standard;

(b) The capacity of each renewable energy system owned, operated or controlled by the provider, the total amount of electricity generated by each such system during the reporting period and the percentage of that total amount which was generated directly from renewable energy;

(c) Whether, during the reporting period, the provider began construction on, acquired or placed into operation any renewable energy system and, if so, the date of any such event; and

(d) Any other information that the commission by regulation may deem relevant.

(Added to NRS by 2001, 2529)

NRS 704.7828 Regulations; enforcement; administrative fines.

1. The commission shall adopt regulations to carry out and enforce the provisions of NRS 704.7801 to 704.7828, inclusive. The regulations adopted by the commission may include any enforcement mechanisms which are necessary and reasonable to ensure that each provider of electric service complies with its portfolio standard. Such enforcement mechanisms may include, without limitation, the imposition of administrative fines.

2. If a provider does not comply with its portfolio standard for any calendar year and the commission has not exempted the provider from the requirements of its portfolio standard pursuant to NRS 704.7821, the commission may impose an administrative fine against the provider or take other administrative action against the provider, or do both.

3. The commission may impose an administrative fine against a provider based upon:

(a) Each kilowatt-hour of electricity that the provider does not generate or acquire from a renewable energy system or a solar renewable energy system during a calendar year in violation of its portfolio standard; or

(b) Any other reasonable formula adopted by the commission.

4. In the aggregate, the administrative fines imposed against a provider for all violations of its portfolio standard for a single calendar year must not exceed the amount which is necessary and reasonable to ensure that the provider complies with its portfolio standard, as determined by the commission.

5. If the commission imposes an administrative fine against a provider that is a public utility:

(a) The administrative fine is not a cost of service of the provider;

(b) The provider shall not include any portion of the administrative fine in any application for a rate adjustment or rate increase; and

(c) The commission shall not allow the provider to recover any portion of the administrative fine from its retail customers.

6. All administrative fines imposed and collected pursuant to this section must be deposited in the state general fund.

(Added to NRS by 2001, 2530)