Montana Code 69-3-1611. Effect on commission jurisdiction
69-3-1611. Effect on commission jurisdiction. (1) Except as provided in subsection (2), if the commission issues a financing order to an electric utility, the commission may not, in exercising its powers and carrying out its duties pursuant to Title 69:
Terms Used In Montana Code 69-3-1611
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- commission: means the public service commission provided for in 2-15-2602. See Montana Code 69-1-101
- Electric utility: means any electric utility regulated by the commission pursuant to Title 69, chapter 3, including the electric utility's successors or assignees. See Montana Code 69-3-1603
- Financing costs: means , if approved by the commission in a financing order, costs to issue, service, repay, or refinance Montana energy impact assistance bonds, whether incurred or paid on issuance of the Montana energy impact assistance bonds or over the life of the bonds. See Montana Code 69-3-1603
- Financing order: means an order issued by the commission in accordance with 69-3-1606 that grants, in whole or in part, an application filed pursuant to 69-3-1605 authorizing the issuance of Montana energy impact assistance bonds in one or more series, the imposition, charging, and collection of Montana energy impact assistance charges, and the creation of Montana energy impact assistance property. See Montana Code 69-3-1603
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Montana energy impact assistance bonds: means low-cost corporate securities, including but not limited to senior secured bonds, debentures, notes, certificates of participation, certificates of beneficial interest, certificates of ownership, or other evidences of indebtedness or ownership that have a scheduled maturity of no longer than 30 years and a final legal maturity date that is not later than 32 years from the issue date, that are rated AA or Aa2 or better by a major independent credit rating agency at the time of issuance, and that are issued by an electric utility or an assignee pursuant to a financing order. See Montana Code 69-3-1603
- Montana energy impact assistance charges: means charges in amounts determined appropriate by the commission and authorized by the commission in a financing order in order to provide a source of revenue solely to repay, finance, or refinance Montana energy impact assistance costs and financing costs that are imposed on and are a part of all customer bills and are collected in full by the electric utility that the financing order applies to, its successors or assignees, or a collection agent through a nonbypassable charge that is separate and apart from the electric utility's base rates. See Montana Code 69-3-1603
- Montana energy impact assistance costs: means :
(i)at the option of and upon petition by an electric utility, and as approved by the commission pursuant to 69-3-1606, the pretax costs that the electric utility has incurred or will incur that are caused by, associated with, or remain as a result of the retirement or replacement of electric generating infrastructure or facilities located in Montana; and
(ii)pretax costs that an electric utility has previously incurred related to the closure or replacement of electric infrastructure or facilities occurring before July 1, 2019. See Montana Code 69-3-1603
(a)consider the Montana energy impact assistance bonds issued pursuant to the financing order to be debt of the electric utility other than for income tax purposes unless it is necessary to consider the Montana energy impact assistance bonds to be debt to achieve consistency with prevailing utility debt rating methodologies;
(b)consider the Montana energy impact assistance charges paid under the financing order to be revenue of the electric utility;
(c)except as otherwise provided for in this part or for the purposes of establishing the electric utility’s base rates, consider the Montana energy impact assistance costs or financing costs specified in the financing order to be the regulated costs or assets of the electric utility; or
(d)determine any prudent action taken by an electric utility that is consistent with the financing order to be unjust or unreasonable.
(2)Nothing in subsection (1):
(a)affects the authority of the commission to apply or modify any billing mechanism designed to recover Montana energy impact assistance charges;
(b)prevents or precludes the commission from investigating the compliance of an electric utility with the terms and conditions of a financing order and requiring compliance with the financing order; or
(c)prevents or precludes the commission from imposing regulatory sanctions against an electric utility for failure to comply with the terms and conditions of a financing order or the requirements of this part.
(3)The commission may not refuse to allow the recovery of any costs associated with the retirement or replacement of electric infrastructure or facilities by an electric utility solely because the electric utility has elected to finance those activities through a financing mechanism other than Montana energy impact assistance bonds.
(4)The commission shall authorize mitigating remedies to offset an electric utility’s book losses, as determined necessary by the commission.