The CRC is an agency of the State of Nevada, authorized by state law to, among other things, sell electricity and provide transmission service or distribution service, or both, to certain groups of customers. The CRC purchases a substantial amount of the electricity requirements of its retail customers on the open market. These Frequently Asked Questions relate only to these open market transactions.
The CRC purchases power on the open market to support two different groups of retail customers. The first group includes the manufacturing companies that comprise the Basic Management Industries located near Henderson, Nevada. The second customer group includes the Southern Nevada Water Authority and those of its member agencies that have elected to purchase power from the CRC. The SNWA is a political subdivision of the State of Nevada.
Currently, the CRC purchases only physical electricity products for its customers. For the Industries, an RFP for short-term firm, fixed-priced, physical energy is issued every month. The RFP quantity varies from month to month based on the needs of the Industries. For the SNWA, the CRC primarily buys and sells firm, fixed-priced, standard products. However, from time to time, non-standard products may be purchased and sold and may be non-firm or unit contingent.
No. The CRC's real-time functions are currently performed by Nevada Power Company.
For the Industries, all activity is limited to the Mead Substation in southern Nevada. For the SNWA, the CRC primarily transacts at Mead and Palo Verde Substations. However, from time to time, the CRC may transact at other delivery points primarily in the Southwest region.
No. All physical natural gas products are purchased by the SNWA.
No. All financial products are purchased by the SNWA.
Yes. CRC uses the WSPP Agreement for all of its power transactions on the open market. The CRC has been a member of the WSPP since July 1, 2001.
The CRC does not transact under the EEI Agreement.
Yes, the CRC signed this agreement on July 31, 2001.
The CRC is a state agency whose power purchases are authorized by law. Although there is no legislative "guarantee" or full faith and credit pledge of the State backing these purchases, CRC's payment obligations are backed by revenue received from the sale of the power to CRC's customers and by legislative revenue and spending authorizations for the CRC account from which the WSPP transactions are paid.
When CRC purchases power for the Basic Management Industries, it buys the power pursuant to one or more of its supplemental power or energy supply contracts with the Industries. Each contract obligates the customer to pay CRC for the power purchased for that customer, and, in addition, each customer has deposited with CRC sufficient cash or letters of credit as collateral to back up its payment obligations 100 percent.
Where CRC purchases power on behalf of the Southern Nevada Water Authority, CRC's payment obligations are supported by SNWA's contractual obligation to pay CRC for power furnished under their electric power supply agreement with the CRC as well as the credit standing of the SNWA and also by its respective budgetary authorizations.
A number of documents are available on the CRC's website or upon request to assist counterparties in evaluating the CRC's creditworthiness. These documents include:
No. NAC 538.744(1)(b) expressly exempts "The Nevada Power Company and any other entity regularly engaged in the business of buying and selling electric power" from the provisions of this regulation.
The CRC will ask a counterparty to post collateral in the event that the counterparty does not have its own set of audited financials or does not have a rating that is reported by either Standard & Poor's or Moody's. The CRC looks to these documents to evaluate the creditworthiness of its counterparties. If such a counterparty is a subsidiary of a company which does meet these requirements, a parental guaranty, letter of credit or other adequate collateral may be requested. The CRC's preferred form of parental guaranty agreement is available upon request.
Unless a counterparty is also a holder of an allocation of hydroelectric power from the CRC, this regulation would not apply to the counterparty.
Contact CRC's Energy Service Group at (702) 691-5234.