Nevada § 538.181 - Contracts relating to power and water: Authority; applicant's bond; procedure; renewal; exemption from regulation by Public Utilities Commission of Nevada

§ 538.181. Contracts relating to power and water: Authority; applicant's bond; procedure; renewal; exemption from regulation by Public Utilities Commission of Nevada

1. The Commission shall hold and administer all rights and benefits pertaining to

the distribution of the power and water mentioned in NRS 538.041 to 538.251 , inclusive, for the State of Nevada and, except as otherwise provided in NRS 538.186 , may enter into contracts relating to that power and water, including the transmission

and other distribution services, on such terms as the Commission determines. 2. Every applicant, except a federal or state agency or political subdivision, for

power or water to be used within the State of Nevada must, before the application

is approved, provide an indemnifying bond by a corporation qualified pursuant to the

laws of this State, or other collateral, approved by the State Board of Examiners,

payable to the State of Nevada in such sum and in such manner as the Commission may

require, conditioned for the full and faithful performance of the lease, sublease,

contract or other agreement. 3. The power and water must not be sold for less than the actual cost to the State

of Nevada. 4. Except as otherwise provided in subsection 5, before any such sale or lease is

made, a notice of it must be advertised in two papers of general circulation published

in the State of Nevada at least once a week for 2 weeks. The Commission shall require any person desiring to make objection thereto to file

the objection with the Commission within 10 days after the date of the last publication

of the notice. If any objection is filed, the Commission shall set a time and place for a hearing

of the objection not more than 30 days after the date of the last publication of the

notice. 5. The provisions of subsection 4 do not apply to: (a) Any contract by the Commission to sell supplemental power to a holder of a long-term

firm contract with the State for power if the supplemental power is procured by the

Commission from a prearranged source and is secured by the holder for his or her own

use; or (b) Any agreement by the Commission to sell short-term or interruptible power on short

notice for immediate acceptance to a holder of a long-term firm contract with the

State for power who can take delivery of the short-term or interruptible power when

it is available. 6. Except as otherwise provided in subsection 2 of NRS 538.251 , any such lease, sublease, contract or sale of the water or power is not binding

upon the State of Nevada until ratified and approved by the Governor and, where required

by federal law, until approved by the United States. 7. The Commission shall, upon the expiration of a contract for the sale of power which

is in effect on July 1, 1993, offer to the purchaser the right to renew the contract. If the Commission is unable to supply the amount of power set forth in the contract

because of a shortage of power available for sale, it shall reduce, on a pro rata

basis, the amount of power it is required to sell pursuant to the renewed contract. 8. Except as otherwise provided in NRS 704.787 , notwithstanding any provision of chapter 704 of NRS , any purchase of: (a) Power or water for distribution or exchange, and any subsequent distribution or

exchange of power or water by the Commission; or (b) Water for distribution or exchange, and any subsequent distribution or exchange

of water by any entity to which or with which the Commission has contracted the water, is not subject to regulation by the Public Utilities Commission of Nevada.