Montana Code Annotated
Part 14. Natural Gas Utility Restructuring and Customer Choice Act
69-3-1407. Optional performance-based ratemaking for natural gas utilities -- commission rulemaking

69-3-1407. Optional performance-based ratemaking for natural gas utilities -- commission rulemaking. (1) The commission may, upon application and after giving notice and conducting a hearing as provided in 69-3-303, authorize any natural gas utility to implement an optional form of rate regulation using a performance-based ratemaking methodology.
(2) The commission may approve a performance-based ratemaking methodology if it finds that the methodology:
(a) preserves adequate service to all classes of customers, including transportation-only customers;
(b) does not unreasonably prejudice or disadvantage any class of natural gas utility users;
(c) provides incentives for improved performance by the natural gas utility in the natural gas utility's public duties;
(d) results in rates that are not excessive; and
(e) is in the public interest.
(3) The commission may, after giving notice and conducting a hearing as provided in 69-3-303, modify or discontinue a natural gas utility's performance-based ratemaking previously authorized under this section if the commission finds that:
(a) natural gas service to one or more classes of customers has deteriorated or will deteriorate;
(b) any class of natural gas utility customer is being unreasonably prejudiced or disadvantaged;
(c) the performance-based ratemaking is not providing or will not provide reasonable incentives for improved performance by a natural gas utility in the performance of its public duties;
(d) rates are excessive compared to a natural gas utility's cost of service;
(e) terms ordered by the commission in connection with the approval of a natural gas utility's implementation of performance-based ratemaking have been violated; and
(f) the performance-based form of regulation is not in the public interest.
(4) The commission shall promulgate rules for monitoring a natural gas utility that has implemented performance-based ratemaking to ensure that the natural gas utility is in compliance with the requirements of this section.
History: En. Sec. 7, Ch. 506, L. 1997.