What Are “Charges For The Mere Availability of Service,” And Are They Assessed by The District?
Given we’ve shared that a general improvement district’s (“GID’s”) Board of Trustees’ (“Board’s”) power to “fix, and from time to time increase or decrease…rates, tolls or charges other than special assessments” flows from NRS 318.197(1), and this NRS instructs those exactions may “includ(e)…charges for the availability of service,” here we examine charges for the availability of service, and whether they are assessed by the District?
Although NRS 318.197 expressly uses the words “charges for the availability of service,” just like the words “standby service charges,” nowhere is the term defined. Do a search of the entire NRS, and nowhere will you find a definition. Anywhere! Nor has the Nevada Supreme Court ever interpreted the term. So again we’re relegated to searching elsewhere. And here’s what we’ve discovered:
“Service availability (charges are similar to service and facility charges in that they are)…flat fee(s) designed to recover the cost of delivering (a service, generally utility, like) electricity to all (users)…This charge…is…similar to service charges that (some utilities charge in that it is)…reflective of the investment in (infrastructure like poles, wires, transformers and equipment)…it takes to provide…safe, reliable…service. It also supports fleet, facility and customer service functions, such as…maintenance, restoration…when outages occur, right-of-way clearing, and general administration…These costs are part of (a customer’s) bill…so (service) is ‘available’…whenever (he/she/it) want(s) it. The service availability charge allows everyone to pay a share of the basic costs in order to (realize) reliable…service…whenever it’s needed.”1
Therefore as you can see, “availability of service” charges, themselves, don’t pay for persons’ access to and use of anything. Rather, they pay for their properties’ availability to use District services. And just like “service charges,” they’re included in the user fees the District ultimately charges.
And now you know.