NRS704.785. Adoption of regulations authorizing electric utility to recover amount based on effects of implementing energy efficiency and conservation programs; limitations.

      1.  The Commission shall adopt regulations authorizing an electric utility to recover an amount based on the measurable and verifiable effects of the implementation by the electric utility of energy efficiency and conservation programs approved by the Commission, which:

      (a) Must include:

             (1) The costs reasonably incurred by the electric utility in implementing and administering the energy efficiency and conservation programs; and

             (2) Any financial disincentives relating to other supply alternatives caused or created by the reasonable implementation of the energy efficiency and conservation programs; and

      (b) May include any financial incentives to support the promotion of the participation of the customers of the electric utility in the energy efficiency and conservation programs.

      2.  When considering whether to approve an energy efficiency or conservation program proposed by an electric utility as part of a plan filed pursuant to NRS 704.741, the Commission shall consider the effect of any recovery by the electric utility pursuant to this section on the rates of the customers of the electric utility.

      3.  The regulations adopted pursuant to this section must not:

      (a) Affect the electric utility’s incentives and allowed returns in areas not affected by the implementation of energy efficiency and conservation programs; or

      (b) Authorize the electric utility to earn more than the rate of return authorized by the Commission in the most recently completed rate case of the electric utility.

      4.  As used in this section, “electric utility” has the meaning ascribed to it in NRS 704.187.

      (Added to NRS by 2009, 1391)