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| Montana Administrative Register Notice 38-5-250 | No. 7 04/15/2022 | |
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BEFORE THE DEPARTMENT OF PUBLIC SERVICE REGULATION OF THE STATE OF MONTANA
TO: All Concerned Persons
1. On February 11, 2022, the Department of Public Service Regulation published MAR Notice No. 38-5-250 pertaining to the public hearing on the proposed adoption of the above-stated rule at page 217 of the 2022 Montana Administrative Register, Issue Number 3.
2. The Department of Public Service Regulation will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, please contact the Department of Public Service Regulation no later than 5:00 p.m. on May 10, 2022, to advise us of the nature of the accommodation that you need. Please contact Tarin Slayton at the department by telephone at (406) 444-6170, by TDD/Montana Relay Service at 444-4212, or by e-mail at tarin.slayton@mt.gov.
3. After receiving public comment on its original rulemaking proposal, the Public Service Commission has decided to supplement its proposal with additional minimum filing requirements for financing order applications. Additionally, the commission has identified certain terms in its original rulemaking proposal that are ambiguous, which have been clarified with the changes described below.
4. The rule as proposed to be adopted is amended as follows, new matter underlined, deleted matter interlined:
NEW RULE I MONTANA ENERGY IMPACT ASSISTANCE FINANCING (1) If an electric utility applies to the commission to approve a financing order pursuant to the Montana Energy Impact Assistance Act, the electric utility's application to the commission must describe how such financing satisfies or follows from a plan developed pursuant to 69-3-1201 et seq., MCA, and any responsive commission comments. (2) An application for a Montana Energy Impact Assistance Act financing order must be consistent with the relevant statutory requirements in 69-3-1601 through 69-3-1623, MCA, and include the following minimum filing requirements: (a) testimony and workpapers providing an estimated schedule for the retirement or replacement of the electric infrastructure or facilities subject to the application; (b) testimony and workpapers specifying the electric infrastructure or facilities to be retired or replaced, and the effects of the proposed financing on the retirement or replacement, including a description and calculation of the applicable electric infrastructure or facilities' contribution to the electric utility's (c) testimony and workpapers describing the amount and terms of the proposed securitization, including the Montana energy impact assistance costs and financing costs associated with the retirement or replacement; (d) testimony and workpapers describing the proposed methodology for allocating the revenue requirement for the Montana energy impact assistance charge among customer classes; (e) testimony and workpapers describing the nonbypassable Montana energy impact assistance charge required to be paid by customers within the electric utility's service area for the recovery of the Montana energy impact assistance costs; (f) testimony and workpapers estimating the net present value of electric utility customer savings expected to result if the financing order is issued using a net present value comparison between the costs to customers that are expected to result from the financing of the undepreciated balances of electric infrastructure or facilities with Montana energy impact assistance bonds and the costs that would result from the application of traditional electric utility financing mechanisms to the same undepreciated balances; (g) testimony and workpapers demonstrating one or more alternative financing scenarios in addition to the preferred scenario contained in the application. The alternative scenarios shall include various bond lengths with sensitivity analyses of associated interest rates, and compare electric utility customer savings under each scenario; (h) testimony and workpapers describing the proposed billing mechanism to collect the Montana energy impact assistance charges from the electric utility customers, including proposed tariff sheets; (i) a copy of the proposed Montana energy impact assistance bonds; (j) testimony and workpapers describing the proposed true up mechanism to adjust for any over/undercollections of Montana energy impact assistance charges; (k) testimony and workpapers describing the proposed method to remove the applicable electric infrastructure or facilities from the electric utility's (l) if approval for the use of any remaining Montana energy impact assistance bond proceeds is not requested in the application, testimony providing a general description and timeframe of the electric utility's anticipated use of such proceeds in compliance with 69-3-1623, MCA. (3) The commission may assess a penalty for violations of 69-3-1616, MCA. A penalty must be reasonable based on the facts and circumstances presented for each violation, including the amount in controversy, and be sufficient to deter future noncompliance. Penalty amounts must be determined after providing parties an opportunity to appear and be heard. Penalties must be in amounts authorized by 69-3-206(1), MCA, and recovered from electric utilities under the procedure required by 69-3-206(2), MCA.
AUTH: 69-3-1604, MCA IMP: 69-3-1604, MCA
5. The statement of reasonable necessity is amended as follows, new matter underlined, deleted matter interlined:
The Public Service Commission (commission) proposes the rule to implement the Montana Energy Impact Assistance Act, which provides an alternative financing mechanism to address the retirement and replacement of electric infrastructure or facilities and to authorize the commission to review and approve one or more financing orders, if it deems approval appropriate and in the interest of ratepayers.
The commission proposes (1) to align Montana energy impact assistance financing with least-cost planning requirements to ensure financing orders are consistent with just and reasonable rates and prudent utility resource planning decisions.
The commission proposes (2) to align minimum filing requirements with those required by statute (69-3-1601 through 69-3-1623, MCA). To understand the effects of the proposed Montana energy impact assistance bond financing on the retirement or replacement of utility infrastructure and facilities, the commission requires information regarding the effect of bond financing on the utility's revenue requirement and supply cost tracking mechanisms, as described in (2)(b).
The commission proposes (3) to establish general guidelines, penalty amounts, and a procedure for the commission to determine and assess the administrative penalty provided in 69-3-1604, MCA. This proposal refers to 69-3-206, MCA, which provides penalty amounts and provides a statutory procedure for recovering those penalties.
6. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to Tarin Slayton, Department of Public Service Regulation, 1701 Prospect Ave, Helena, Montana, 59620-2601; telephone (406) 444-6170; fax (406) 444-7618; TDD/Montana Relay Service 444-4212; or e-mail tarin.slayton@mt.gov, and must be received no later than 5:00 p.m., May 13, 2022.
7. The Montana Consumer Counsel, 111 North Last Chance Gulch, Suite 1B, Helena, MT 59620-1703, telephone (406) 444-2771, is available and may be contacted to represent consumer interests in this matter.
/s/ Lucas Hamilton /s/ James Brown Lucas Hamilton James Brown Rule Reviewer President Public Service Commission
Certified to the Secretary of State April 5, 2022.
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