Montana Administrative Register Notice 38-2-208 No. 7   04/15/2010    
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In the matter of the adoption of new rule I regarding the nonproprietary nature of utility executive compensation







TO:      All Concerned Persons


1.  On May 18 2010 at 1:30 p.m. the Department of Public Service Regulation Montana Public Service Commission will hold a public hearing in the Bollinger Hearing Room commission offices at 1701 Prospect Ave. Helena Montana to consider the proposed adoption of a new rule addressing the nonproprietary nature of public utility executive compensation.


2.  The Public Service Commission will make reasonable accommodations for persons with disabilities who wish to participate in the rulemaking process or need an alternative accessible format of this notice.  If you require an accommodation contact Verna Stewart Commission Secretary P.O. Box 202601 Helena, MT 59620-2601; telephone (406) 444-6170; fax (406) 444-7618; or e-mail vstewart@mt.gov no later than 5:00 p.m. on May 12 2010 to advise us of the nature of the accommodation that you need.


3.  The rule as proposed to be adopted provides as follows:


RULE I  PUBLIC UTILITY EXECUTIVE COMPENSATION  (1)  Each year‚ jurisdictional public utilities shall submit to the commission‚ the names and total company compensation including‚ but not limited to base salary‚ short-term (annual) incentive plan benefits‚ long-term incentive plan benefits‚ stock options‚ any supplemental benefit plans and perquisites‚ and compensation from the public utility affiliates of their executive management personnel in Montana. Executive management personnel in Montana are those persons whose responsibilities are material to the public interest determinations of the commission and whose total compensation exceeds $100‚000 per year. The utility executive total compensation information will not be treated as confidential information and will not be protected from public disclosure through issuance of a protective order by the commission.

(2)  When a protective order is requested for salary information because the duties of the position are not material to the public interest determination by the commission the commission will not issue a protective order if the position's duties include any of the following:

(a)  Oversee diverse activities for multiple work units or major organizational functions and which have responsibility for integrating work or multiple organizational units to align them with the company's established goals and objectives;

(b)  Secure and allocate human and financial resources to accomplish goals; and

(c)  Develop and establish organizational standards goals objectives business plans and evaluate organizational performance.

(3)  Adoption of this rule does not preclude the commission from seeking and securing other information from regulated businesses.


            AUTH: 69-3-103 MCA

            IMP: 69-3-102 69-3-106 69-3-201 69-3-203 69-3-330 MCA


            4.  The commission proposes to adopt the new rule to assure all regulated public utility executives are afforded notice that the commission has determined that because such executives' responsibilities and actions are material to the public interest determinations of the commission and to the commission's ability to fully regulate Montana's public utilities as contemplated in 69-3-102 and 69-3-106 MCA the commission has determined that the public's right to know exceeds the expectation of individual privacy.  The commission will not issue protective orders to protect from public disclosure the total compensation of public utility executives.


            5.  Concerned persons may submit their data views, or arguments either orally or in writing at the hearing.  Written data views or arguments (original and ten copies) may also be submitted to Legal Division Public Service Commission 1701 Prospect Avenue P.O. Box 202601 Helena MT  59620-2601 and must be received no later than May 18 2010 at 5:00 p.m. or may be submitted to the commission through the commission's web-based comment form at http://psc.mt.gov (go to "Contact Us" "Comment on Proceedings Online" then complete and submit the form) no later than May 18 2010.  (PLEASE NOTE: When filing comments pursuant to this notice please reference "Docket No. L10-4-1.RUL")


            6.  The Montana Consumer Counsel 616 Helena Avenue P.O. Box 201703 Helena Montana 59620-1703 telephone (406) 444-2771 is available and may be contacted to represent consumer interests in this matter.


            7.  An electronic copy of this Notice of Public Hearing is available on the Secretary of State's web site at http://sos.mt.gov/ARM/Register.  The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice as printed in the Montana Administrative Register.  However the commission advises that it will decide any conflict between the official version and the electronic version in favor of the official printed version.  In addition although the Secretary of State works to keep its web site accessible at all times concerned persons should be aware that the web site may be unavailable during some periods due to system maintenance or technical problems.


            8.  The commission maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by the commission.  Persons who wish to have their name added to the list shall make a written request which includes that name e-mail address and mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding: electric utilities providers and suppliers; natural gas utilities providers and suppliers; telecommunications utilities and carriers; water and sewer utilities; common carrier pipelines; motor carriers; rail carriers; and/or administrative procedures.  Such written requests may be mailed or delivered to the Public Service Commission Legal Division 1701 Prospect Ave. P.O. Box 202601 Helena MT 59620-2601 faxed to Verna Stewart at (406) 444-7618 e-mailed to vstewart@mt.gov or may be made by completing a request form at any rules hearing held by the commission.


            9.  The bill sponsor contact requirements of 2-4-302 MCA do not apply.




/s/  Greg Jergeson                                        /s/  Robin McHugh                

Greg Jergeson, Chairman                           Reviewed by Robin McHugh

Public Service Commission                        Montana Public Service Commission



            Certified to the Secretary of State April 5 2010.


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