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, if the Commission determines that it will serve the public interest by removing financial disincentives which discourage an electric utility from implementing or promoting the participation of the customers of the electric utility in energy efficiency and conservation programs, include a rate adjustment mechanism to ensure that the revenue per customer authorized in a general rate application is recovered without regard to the difference in the quantity of electricity actually sold by the electric utility subsequent to the date on which the rates take effect. A rate adjustment mechanism adopted pursuant to this paragraph may apply to one or more rate classes.

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

(Added to NRS by 2009, 1391; A 2017, 4293)