396.826  “Operation and maintenance expenses”: Exclusions from definition.  The term “operation and maintenance expenses” does not include:

1.  Any allowance for depreciation, except as otherwise provided in subsection 7 of NRS 396.825;

2.  Any costs of reconstruction, improvements, extensions or betterments;

3.  Any accumulation of reserves for capital replacements;

4.  Any reserves for operation, maintenance or repair of any facilities;

5.  Any allowance for the redemption of any bond or other security evidencing a loan or other obligation or the payment of any interest thereon;

6.  Any liabilities incurred in the acquisition or improvement of any properties comprising any project or any existing facilities, or any combination thereof; and

7.  Any other ground of legal liability not based on contract.

(Added to NRS by 1967, 5)