1. The Commission may, upon application of a local government which provides water services, issue an order directing a public utility which has facilities for the treatment and transmission of water to allow the local government to use the facilities to treat, transport or exchange water, or any combination thereof, to service connections not served by the public utility. The order may require the public utility to do everything reasonably necessary, as determined by the Commission, to treat, transport or exchange water. The Commission shall determine the rates and charges to be paid by the local government to the public utility for the services provided. In making this determination, the Commission shall consider all direct and indirect costs attributable to the treatment, transportation or exchange of water. The order may impose conditions and requirements on the local government and public utility to ensure that customers of the utility continue to receive at just and reasonable rates, an adequate supply of water.

2. A local government which files an application with the Commission pursuant to subsection 1 shall file a copy of that application with each city planning commission of an affected incorporated city and with the regional planning commission of an affected county, if one exists, for its review and comment.

3. The provisions of this section do not preclude any local government from bringing an action pursuant to chapter 37 of NRS for the same purpose for which a local government is allowed to use the facilities of a public utility pursuant to this section.

(Added to NRS by 1989, 726)