69-3-1612. Electric utility customer protection. (1) Because the commission's approval of a financing order is irrevocable, typically addresses very large amounts of financing undertaken, and is not reviewable by future commissions, in addition to its other powers and duties, the commission shall perform comprehensive due diligence in its evaluation of an application for a financing order and shall oversee the process used to structure, market, and price Montana energy impact assistance bonds.
(2) In addition to any other authority, the commission:
(a) may attach conditions to the approval of a financing order as the commission finds appropriate to maximize the financial benefits or minimize the financial risks of the transaction to customers and to directly impacted Montana workers and communities;
(b) may specify details of the process used to structure, market, and price Montana energy impact assistance bonds, including the selection of the underwriter or underwriters;
(c) shall review and determine the reasonableness of all proposed upfront and ongoing financing costs; and
(d) shall ensure that the structuring, marketing, and pricing of Montana energy impact assistance bonds maximizes net present value customer savings, consistent with market conditions and the terms of the financing order.
(3) (a) Within 120 days after the issuance of Montana energy impact assistance bonds, the applicant electric utility shall file with the commission information regarding the actual upfront and ongoing financing costs of the Montana energy impact assistance bonds. The commission shall review the prudence of the electric utility's action to determine whether the costs resulted in the lowest overall costs that were reasonably consistent with both market conditions at the time of the issuance and the terms of the financing order.
(b) Except as provided in subsection (3)(c), if the commission determines that the electric utility's actions were not prudent or were inconsistent with the financing order, the commission may apply any remedies that are available.
(c) The commission may not apply any remedy that has the effect, directly or indirectly, of impairing the security for the Montana energy impact assistance bonds.
(4) (a) In performing its responsibilities in accordance with this part, the commission may engage outside consultants and counsel experienced in securitized electric utility ratepayer-backed bond financing similar to Montana energy impact assistance bonds, and the expenses associated with the engagement may be included as financing costs and included in the Montana energy impact assistance charge. The costs are not an obligation of the state and are assigned solely to the transaction.
(b) Expenses incurred by the commission to hire and compensate additional temporary staff needed to perform its responsibilities under this part must be included as financing costs and included in the Montana energy impact assistance charge.
(5) If a utility's application for a financing order is denied or withdrawn for any reason and Montana energy impact assistance bonds are not issued, the commission's costs of retaining expert consultants, as authorized by subsection (4), must be paid by the applicant utility and are considered by the commission as a prudent deferred expense for recovery in the utility's future rates.
History: En. Sec. 9, Ch. 442, L. 2019.
Structure Montana Code Annotated
Title 69. Public Utilities and Carriers
Chapter 3. Regulation of Utilities
Part 16. Montana Energy Impact Assistance Act
69-3-1602. Purpose -- legislative intent
69-3-1604. Commission rulemaking
69-3-1605. Financing orders -- application requirements
69-3-1606. Issuance of financing orders
69-3-1607. Effect of financing order
69-3-1608. Montana energy impact assistance bonds
69-3-1609. and 69-3-1610 reserved
69-3-1611. Effect on commission jurisdiction
69-3-1612. Electric utility customer protection
69-3-1613. Judicial review of financing orders
69-3-1614. and 69-3-1615 reserved
69-3-1616. Electric utilities -- duties -- nonbypassable charges
69-3-1617. Montana energy impact assistance property
69-3-1619. Assignee or financing party not subject to commission regulation
69-3-1620. Effect of other laws
69-3-1621. Security interests in Montana energy impact assistance property
69-3-1622. Sales of Montana energy impact assistance property