Montana Code 69-3-604. Standards for determination of rates and conditions
69-3-604. (Temporary) Standards for determination of rates and conditions. (1) The commission shall determine the rates and conditions of the contract for the sale of electricity by a qualifying small power production facility according to the standards in subsections (2) through (6).
Terms Used In Montana Code 69-3-604
- Commission: means the Montana public service commission. See Montana Code 69-3-601
- Contract: A legal written agreement that becomes binding when signed.
- Qualifying small power production facility: means a facility that:
(a)produces electricity by the use, as a primary energy source, of biomass, waste, water, wind, or other renewable resource, or any combination of those sources; or
(b)produces electricity and useful forms of thermal energy, such as heat or steam, used for industrial, commercial, heating, or cooling purposes through the sequential use of energy known as cogeneration; and
(c)has a power production capacity that together with any other facilities located at the same site is not greater than 80 megawatts; and
(d)is owned by a person not primarily engaged in the generation or sale of electricity other than electric power from a small power production facility. See Montana Code 69-3-601
- Utility: means any public utility supplying electricity and regulated by the commission. See Montana Code 69-3-601
(2)Long-term contracts for the purchase of electricity by the utility from a qualifying small power production facility must be encouraged in order to enhance the economic feasibility of qualifying small power production facilities.
(3)The rates to be paid by a utility for electricity purchased from a qualifying small power production facility must be established with consideration of the availability and reliability of the electricity produced.
(4)The commission shall set these rates using the avoided cost over the term of the contract.
(5)Avoided cost rates may not include a bonus or adder to provide additional compensation for environmental externalities or other costs above avoided costs, except when a bonus or adder is necessary to compensate for a real and actual cost required by existing regulation or existing law.
(6)The commission may adopt rules further defining the criteria for qualifying small power production facilities, their cost-effectiveness, and other standards. (Repealed on occurrence of contingency–secs. 1, 3, Ch. 284, L. 2003–see part compiler’s comment.)