“Base tariff energy rate” defined.

“Base tariff energy rate” means: 1. For an electric utility, the rate determined by dividing the cost of fuel for electric generation and purchased power, reduced by any revenue from off-system sales for the test period, by the total megawatt-hours that have been sold, exclusive of off-system sales, for the test period, except that if a regulation of the Commission or a specific fuel or purchased power contract so specifies, the costs and benefits must be treated in accordance with the regulation or the terms and conditions of the contract; 2. For a gas utility that does not make quarterly adjustments, the rate determined by dividing the cost of purchased gas by applicable sales as described in NAC 704.135 ; or 3. For a gas utility that makes quarterly adjustments, the rate determined pursuant to the methodology determined by the Commission pursuant to NAC 704.161 .