Public Utilities Commission of Nevada | Page 1Public Utilities Commission of Nevada | puc.nv.gov

Produced by the PUCN’s Public Information & Outreach Offices

August 2019 Edition

ConnectionA MONTHLY NEWSLETTER FROM the PUBLIC UTILITIES COMMISSION OF NEVADA

PUCN

Fraud is everywhereBy Kimberly BurakowskiPUCN Financial Analyst FraudisdefinedbyBlack’sLawDictionaryas:a knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment. Consequently,fraudincludesanyintentionalordeliberateacttodepriveanotherofpropertyormoneybyguile,deception,orotherunfairmeansanditaffectseveryone,individuals,corporations,andgovernments. Irecentlyattendedthe30th Annual ACFE Global Fraud Conference (www.fraudconference.com),hostedbytheAssociationofCertifiedFraudExaminers,theworld'slargestanti-fraud organization and premier provider of anti-fraud trainingandeducation.Morethan3,000professionalsfromaroundtheworldattendedtolearnaboutthelatestfraudtrendsandwaystopreventanddetectfraud. Duringtheconference,Iattendedvarioussessionsthatfocusedontypesoffraudthatcoulddirectlyimpactpublicutilities,theircustomersandgovernmentagencies.Onesuchsessionfocusedoncapitalprojects,somethingweatthePUCNspendasignificantamountoftimereviewingduringgeneralratecaseandintegratedresourceplanningdockets.Capitalprojectsarelong-term,large-scalenewconstruction,expansion,renovationorreplacementprojects.Examplesofutility-relatedcapitalprojectsincludeneworrenovatedpowerplants,ortheinstallationofnaturalgaspipeline. Thesession,“FraudImplicationsinLarge-ScaleCapitalProjects,”wasledbyMichaelJ.Fucilli,whoisthechiefauditexecutiveforthelargestpublic-sectortransitauthorityinNorthAmerica.AccordingtoFucilli,therearealmostunlimitedwaysinwhichcompaniescanbedefraudedintheconstructionindustry.Fraudhappensinowner-contractorandcontractor-subcontractorrelationships,andit’scommittedbyemployees

ofanytypeorsizeofcontractingfirm.Lastyear’sKrollAnnualGlobalFraudandRiskReportshowedthat70%of construction companies experiencedatleastoneincidentoffraud. Thefollowingkeypointswerediscussed:

• Common Failures:○ Inadequate

executiveoversight of the project.

○ Failuretocontroltheexpansionofthescopeandcostoftheproject.

○ Failuretoholdcontractorsaccountablefortheirinabilitytoprovidedeliverablesonscheduleandwithinbudget.

○ Failuretoproperlyvetcontractorsandsubcontractorsforconflictsofinterestandpotentialfraud.

○ Failuretoplanforfuturecontrolovermanagementandmaintenanceofthecompletedprojects.

• Solutions:○ Identifyfraudindicatorsinconstructionprojects.○ Identifymaterialcoststhatseeminflatedcompared

totheirmarketvalue.○ Ascertainbestpracticesonprojectcontrols,aswell

“trustthroughverification.”Continued on page 3

Fraud hurts all

Nevadans. Whether you are the victim of a crime,

looking out for those you love, or seeking to be an informed consumer, the Department of

Business and Industry is working to provide Nevadans with important information and tools you need to

join the fight against fraud! And remember, if it sounds too good to

be true, it probably is!

www.FightFraud.nv.gov

FRAUD

Public Utilities Commission of Nevada | Page 2

Describe your current job responsibilities and areas of focus: I'mpartoftheGasPipelineSafetyDivision,wherewedirectlymonitorand inspect gas pipeline facilities (includingnaturalgas,liquidpropanegas,andevenchlorinegas).Wearealso responsible for ensuring safe excavationpracticesthroughOne-Call regulations (Nevada Revised StatuteChapter455-Excavations

&High-VoltageLines and NevadaAdministrativeCode455-Excavations&Demolitions).

What aspects of your job do you enjoy most:Ienjoyhavingadirect,positiveimpactonpipelinesafetyinNevada.EverytimeIhearofdevastatinggaspipelineincidentsinotherstates,IthinkofwhattheycouldhavedonebetterandwhatwecandoinNevadatopreventsuchoccurrences.Theseincidentsgiveustheopportunitytobeproactiveandensurethatweneveradoptthe"itcouldn'thappenhere"attitude.

How long have you been at the PUCN: I'vebeenwiththePUCNforsevenyearsnow(timeflies).Myoriginalpositionwas

gaspipelineengineer.Iwaspromotedtoseniorgaspipelinesafetyengineerin2016.

Prior professional experience:IwasincompliancewithSouthwestGaspriortothePUCNanddidmuchofthesametasksonasmallerscale.Priortothat,IranHR,AccountingandITforasmall(200employees)businessservicesfirm.BeforethatIspentabout12yearsinthehotelindustry(MirageResorts).Ifwejumpwayback(30yearsorso),myveryfirstjobwasatKFCandIstillcan'teatthere.

Educational background (high school/colleges attended; degrees obtained):IwenttohighschoolinLasVegas(ValleyHighSchool)andgraduatedattheUniversityofNevada,LasVegaswithadegreeinbiologyandaminorinchemistry.

Hometown (current and where you grew up): I claim a dual hometownasI'velivedinLasVegassincethe1980s,butlivedinChicagofor10yearspriortothat(goCubbies!)

Find out more about the PUCN's pipeline safety responsibilities at http://puc.nv.gov/Safety/Pipeline/.

Get to Know Us: Neil Pascual, Senior Gas Pipeline Safety Engineer

SAFE DIGGING 101: Always Call 811 Before Digging!Hittinganundergroundutilitylinewhilediggingcancauseenvironmentaldamage,seriouspersonalinjuryanddisruptservicetoanentireneighborhood.Ifyoudon’tcall811priortodiggingandhitanundergroundutilitylineownedand

maintainedbyautility,youcouldpotentiallyincurfinesandberesponsibleforrepaircosts!

Utilitygas,electric & communication

lines.

Utilitysewerline.

Utilitywaterline.

Homeownerelectricline.

Homeownergasline.

Solid lines indicate a gas, electric, communication, water, or sewer

line owned, maintained and marked by a utility.

Dashed lines indicate a gas, electric, water, or sewer line

owned, maintained and marked by a homeowner.

Homeownerwaterline.

Homeownersewerline.

PublicUtilitiesCommissionofNevada|Page3

• Fraud Considerations:○ Contractfraud,suchasbidrigging.○ Contractorfraud,suchasusinginferiormaterialat

ahighercost.○ Peoplerisks,suchasfalsifiedCVs(resumes),

expensesfraud.○ Conflictsofinterest,suchascollusionbetween

suppliersandstaff.○ Accounting/financialfraud,suchaspayment

mandatefraud(banktransfers)andduplicateinvoicing.

○ Fraudcanbeperpetratedbyanyoneconnectedwithaproject:projectstaff,suppliersorsubcontractorswhocanidentifyanopportunitytomakeeasymoneyonthebackofaproject.

○ Theprojectmayevenbethetargetoforganizedfraud,whichcansignificantlyaddtoprojectcostsandunderminetheprojectobjectives.Indeed,manyassessmentsindicatethataprojectcanloseapproximately5%ofitsfundingtofraud.

○ Fraudisanever-presentrisktoallorganizationsandthattheserisksalsoapplytomajorprojectsandconstructionprojects.

AtthePUCNwereviewcapitalprojectsproposedbyvariousutilitiesand,followingthecompletionofaproject,costsoftheprojectswhicharetobepassedontotheconsumer,forprudencyandreasonableness.Althoughwedon’tusuallyhavetheopportunitytoconsiderallthefactorsofaprojectthatmayinvolvefraud,itisimportanttorememberthatwithcapitalprojectsitisnotjustaboutthemonetarycostsoffraudthatcouldbepassedontotheconsumer.Therearealsopossible

significantriskstothepublicintheareasofinfrastructurereliabilityandsafety. Themajorityoffraudisuncoveredthroughtips,otherwiseknownas“whistleblowing.”Nevada’spublicemployeewhistleblowerstatute(NRS281.611through671)isdesignedtoprotectstateandlocalgovernmentemployeesfromretaliationforreporting“impropergovernmentalaction.”InadditiontoNevada’sgeneralwhistleblowingstatute,otherstateandfederallawsinclude:

• Section250oftheNevadaFalseClaimsActprotectsemployeesandcontractorswhoreportfraudingovernmentcontracts.

• Statecommonlawrecognizesthatanemployer’sretaliationagainstawhistleblowingemployeeviolatespublicpolicythatfavorsdisclosureofwrongdoing.

• ThefederalOccupationalSafetyandHealthAdministration(OSHA)enforceswhistleblowingprotectionsunderawiderangeoffederallaws.

Hereareafewrecentarticlesaboutafewverypublicfraudcases:

• GreenEnergyFraud• When‘fairvalue’isn’tsofair• Smalltown,hugefraud,insightfuldocumentary• 5mostscandalousfraudcasesof2018• FormerMicrosoftexecgets28monthsforembezzling

$775,000,stealingdozensofSuperBowltickets

Fraud: continued from page 1

Dockets Opened at the PUCN in July 2019Visit http://puc.nv.gov/Dockets/Dockets/toviewdocumentsfiledinthedocketslistedbelow.

Continued on page 4

Docket # Date Filed Description19-07001 7/1/2019 PublicUtilitiesCommissionofNevada-sponsoredConsumerSessiontobeheldinWashoeCounty,

Nevada,pursuanttoNRS704.069(2).19-07002 7/1/2019 PublicUtilitiesCommissionofNevada-sponsoredConsumerSessiontobeheldinClarkCounty,

Nevada,pursuanttoNRS704.069(2).19-07003 7/1/2019 PublicUtilitiesCommissionofNevada-sponsoredConsumerSessiontobeheldinElkoCounty,

Nevada.19-07004 7/1/2019 ApplicationofNevadaPowerCompanyd/b/aNVEnergyandSierraPacificPowerCompanyd/b/a

NVEnergyforapprovaloftheir2019CombinedAnnualElectricDemandSideManagementUpdateReportasitrelatestotheActionPlanoftheir2019-2038JointIntegratedResourcePlan.

19-07005 7/1/2019 ApplicationofSierraPacificPowerCompanyd/b/aNVEnergyforapprovalofits2019NaturalGasConservationandEnergyEfficiencyPlanAnnualReport.

19-07006 7/1/2019 ApplicationofOregon-IdahoUtilities,Inc.d/b/aHumboldtTelephoneCompanyforauthoritytoestablishitsannualrevenuerequirementfortelephoneservicerates,setanewratedesign,modifydrawsfromtheNevadaUniversalServiceFund,reflectchangesinthecostofcapital,modifydepreciationrates,andforotherreliefproperlyrelatedthereto.

PublicUtilitiesCommissionofNevada|Page4

July Dockets: continued from page 3

Docket # Date Filed Description19-07007 7/8/2019 InformationalReportofProspectorPipelineCompanyconcerningitsnaturalgasresourceplanning

activities.19-07008 7/8/2019 ApplicationofCitizensTelecommunicationsCompanyofNevadad/b/aFrontierCommunicationsof

Nevada,filedunderAdviceLetterNo.NV-19-07,fortheTonopahDivisiontoreviseTariffNo.1-BtointroduceVacationGetAwayServiceforresidentialcustomers.

19-07009 7/8/2019 ApplicationofCitizensTelecommunicationsCompanyofNevadad/b/aFrontierCommunicationsofNevada,filedunderAdviceLetterNo.NV-19-06,fortheElkoDivisiontoreviseTariffNo.1-BtointroduceVacationGetAwayServiceforresidentialcustomers.

19-07010 7/10/2019 Rulemakingtoamend,adopt,and/orrepealregulationsinaccordancewithAssemblyBill163(2019).19-07011 7/10/2019 ApplicationofIntegrationTechnologies,LLCd/b/aINTECHforauthoritytooperateasacompetitive

supplieroftelecommunicationservicewithintheStateofNevada.19-07012 7/15/2019 JointPetitionoftheRegulatoryOperationsStaffandTheFishelCompany(“TeamFishel”)requesting

theCommissionacceptastipulationregardingviolationsofNevada’sOneCallLawbyTeamFishel.19-07013 7/15/2019 JointPetitionoftheRegulatoryOperationsStaffandV.T.Construction,Inc.(“V.T.”)requestingthe

CommissionacceptastipulationregardingviolationsofNevada’sOneCallLawbyV.T.19-07014 7/17/2019 JointPetitionofNevadaPowerCompanyd/b/aNVEnergyandSierraPacificPowerCompanyd/b/a

NVEnergytoestablisharegulatoryassetandtodefercostsassociatedwiththeexpenseandcapitalspendingtoimplementSenateBill329(2019).

19-07015 7/18/2019 ApplicationofSouthwestGasCorporationforapprovalofitsSolarThermalSystemsDemonstrationProgramAnnualPlanforProgramYear2020.

19-07016 7/22/2019 LeeCanyonSkiLifts,Inc.vs.CenturyTeloftheGemState,Inc.d/b/aCenturyLink("CenturyLink").ComplaintregardingCenturyLink'sfailuretoprovidereasonablycontinuousandadequateserviceastheProviderofLastResortandprolongedoutages.

19-07017 7/22/2019 InvestigationandrulemakingtoconsideramendingcertainregulationscontainedinChapter704oftheNevadaAdministrativeCoderelatingtoalternativesellersofdiscretionarynaturalgasservice.

19-07018 7/25/2019 NoticebyGridLianceWestLLC,undertheprovisionsoftheUtilityEnvironmentalProtectionAct,ofanapplicationtoafederalagencyforapprovaltoconstructtheTroutCanyonSubstationconsistingofanew230kVsubstation,appurtenant230kVtransmissionline,andassociatedfacilitiestobelocatedapproximately10milessouthwestofPahrumpinClarkCounty,Nevada.

19-07019 7/24/2019 NoticebyFrontierCommunicationsoftheSouthwestInc.ofServiceCatalogupdatestointroduceVacationGetAwayServiceforresidentialcustomers.

19-07020 7/25/2019 NoticebySolarPartnersXI,LLC,undertheprovisionsoftheUtilityEnvironmentalProtectionAct,ofanapplicationtoafederalagencyforapprovaltoconstructfourtemporarymeteorologicalstationsandassociatedaccessroadsfortheGeminiSolarProject,tobelocatedapproximately25milesnortheastofLasVegasinClarkCounty,Nevada.

19-07021 7/25/2019 JointPetitionofNevadaBellTelephoneCompanyd/b/aAT&TNevadaandAT&TWholesaleandCSCWireless,LLCd/b/aAlticeMobileandAlticeUSAWirelessforapprovalofaTwo-WayCMRSInterconnectionAgreementpursuanttoSection252oftheTelecommunicationsActof1996.

19-07022 7/30/2019 ApplicationofLegentCommLLCd/b/aLongDistanceAmericad/b/aLongDistanceServicestovoluntarilydiscontinuetelecommunicationserviceconductedunderCertificateofPublicConvenienceandNecessity("CPC")2944Sub1.

PrioreditionsofthisnewsletterareavailableonthePUCN’swebsiteatpuc.nv.gov/About/Media_Outreach/PUCN_Connection/.Forquestionsorcommentsaboutthisnewsletter,contactPublicInformationOfficerPeterKostesatpkostes@puc.nv.gov or

ConsumerOutreachDirectorDawnRivardatdrivard@puc.nv.gov.

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