Nevada Administrative Code Chapter 703 - Public Utilities Commission of Nevada
Nevada Administrative Code Chapter 703 — Public Utilities Commission of Nevada
Overview
NAC Chapter 703 governs the regulatory framework, procedures, and operations of the Public Utilities Commission of Nevada (PUCN). The PUCN oversees public utilities within the state, including electric, natural gas, water, and telecommunications providers, ensuring they provide safe, reliable services at fair and reasonable rates.
This chapter establishes rules for:
Utility rate setting and tariff approvals
Licensing and regulation of utility providers
Complaint procedures and hearings
Reporting and record-keeping requirements
Enforcement actions and penalties
Key Provisions of NAC Chapter 703
1. Application and Licensing Procedures
Utilities must obtain certificates of public convenience and necessity before operating.
Applications require detailed information on ownership, operations, finances, and service plans.
The Commission reviews applications for compliance and may hold hearings before granting licenses.
2. Rate Regulation
Utilities file rate schedules and tariff changes with the Commission.
The Commission reviews filings for reasonableness, ensuring rates cover costs without unfairly burdening consumers.
Procedures for public notice, comment, and contested case hearings are outlined.
3. Consumer Protection and Complaints
NAC 703 sets out procedures for consumers to file complaints against utilities.
The Commission investigates complaints and may order remedies or service improvements.
Utilities are required to maintain customer service standards.
4. Reporting and Record-Keeping
Utilities must submit periodic reports on operations, financials, safety, and compliance.
Records must be kept in prescribed formats to facilitate Commission audits.
5. Enforcement and Penalties
The Commission has authority to impose fines, revoke licenses, or order corrective actions for violations.
Procedures for notice, hearings, and appeals are established.
Enforcement Process and Hearings
The chapter specifies formal hearing procedures for contested cases.
Parties have rights to representation, evidence presentation, cross-examination, and appeal.
Administrative Law Judges or Commission members preside over hearings.
Relevant Nevada Case Law Interpreting NAC Chapter 703
Nevada Utility Consumers Alliance v. Public Utilities Commission of Nevada (2005)
Facts: Consumer group challenged a Commission order approving a rate increase.
Holding: The Nevada Supreme Court upheld the Commission’s discretion to balance utility financial health with consumer protection.
Significance: Affirms the Commission’s broad regulatory authority under NAC 703 and the reasonableness standard in rate-setting.
Sierra Water Company v. PUCN (2012)
Facts: Sierra Water contested a complaint resolution where the Commission ordered service improvements and penalties.
Holding: Court supported the Commission’s enforcement authority and its procedural fairness in the hearing process.
Significance: Confirms utilities are accountable for compliance with service standards and may face penalties.
Telecom Providers Association v. PUCN (2018)
Facts: Telecommunications providers challenged new reporting requirements imposed by the Commission.
Holding: Court ruled the Commission acted within its rulemaking authority under NAC 703.
Significance: Validates the Commission’s power to impose reporting and operational regulations.
Practical Implications
| Stakeholders | Implications |
|---|---|
| Utilities | Must comply with licensing, rate filing, reporting, and consumer service rules. |
| Consumers | Can file complaints and expect regulatory oversight of utility service quality and rates. |
| PUCN | Holds wide regulatory and enforcement authority to balance interests and ensure service reliability. |
Summary
NAC Chapter 703 sets the comprehensive regulatory framework for utilities in Nevada.
The rules ensure utilities operate fairly, safely, and transparently, protecting consumers while allowing utilities to maintain financial viability.
Nevada courts have consistently upheld the PUCN’s authority under this chapter to set rates, enforce standards, and regulate utilities.
The chapter’s procedural safeguards promote due process in utility regulation.
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