Montana PSC Proposes Amended Rules to Streamline Alternative Energy Development
The Montana Public Service Commission (PSC) voted unanimously today to propose an amendment to its rules that alternative energy developers use to secure power sales agreements with public utilities. Under the Commission’s proposed amendment, developers of small, alternative energy facilities would have an easier path to forming legally enforceable obligations with utilities.
The Commission’s rules implement the Public Utility Regulatory Policies Act of 1978 (PURPA). PURPA is a federal law designed to promote energy conservation and greater use of domestic and renewable energy. PURPA gives certain generators a right to sell their energy and capacity to public utilities.
In January, NorthWestern Energy asked the Commission to amend its rules to include standards for an existing “Qualifying Facility” (QF) to establish a “Legally Enforceable Obligation” (LEO). In response, the Commission began an informal rulemaking process to gather more information and perspectives including from independent energy developers. The informal rulemaking process is often used by the PSC and other government agencies to gather evidence and public comment before beginning formal rulemaking.
As part of the rulemaking process, the Commission posed questions to and received answers from NorthWestern Energy and other interested parties during an extended public comment period.
“This informal rulemaking process gave the Commission the time and opportunity to fully understand the economic and practical considerations of NorthWestern’s proposed amendments,” said PSC president James Brown. “The net result of this informal process has been to develop a proposed new rule that has been thoroughly vetted and that ensures the PSC is not going down a path that squanders ratepayer resources.”
The PSC will hold a public hearing on the proposed LEO rule on September 11, 2024, at 9:00 a.m. The PSC encourages interested persons to either participate in the September hearing or to submit written public comment to pschelp@mt.gov.
The Commission regulates private investor-owned natural gas, electric, telephone, water, and sewer companies, certain motor carriers, and oversees natural gas pipeline safety and intrastate railroad safety. The Commission works to ensure that Montanans receive safe and reliable service from regulated public utilities while paying reasonable rates.
For more information, visit http://psc.mt.gov or contact the Commission at 1-800-646-6150. Follow the Commission at Twitter.com/@MT_PSC or visit Facebook.com/MontanaPSC [facebook.com].
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