Montana

Summary Customer energy efficiency programs in Montana are provided by utilities or in selected cases by a state agency. Programs receive funding from a universal system benefits charge assessed on all customers whether served by competitive electricity providers or cooperative utilities. Oversight of programs is the responsibility of the Montana Public Service Commission. The Montana Department of Revenue reviews annual reports from the utility program providers to ensure program funds are spent on qualifying programs and associated expenses. According to the Energy Information Administration, Montana utilities spent $6.7 million on energy efficiency in 2007, saving 43,329 MWh.

The Montana Public Service Commission reviews and approves the universal system benefits plans submitted by each utility. The local cooperative governing board is accountable for approving the cooperatives' plans. Each utility or cooperative responsible for collecting the universal system benefits charge can choose to conduct the energy efficiency and renewable energy programs themselves or turn the funds over to the Montana Department of Environmental Quality to administer. Likewise, each utility or cooperative can choose to run the low-income programs itself or turn the funds over to the Montana Department of Health and Social Services to administer. In cases where the utility/cooperative is the administrator, the utility/cooperative can either use its own staff to implement the programs or hire contractors to do the work. Utilities and the statewide cooperative office are required to file annual reports with the Department of Revenue, which makes sure all of the money is being spent on qualifying programs.

Western Montana is part of the Northwest Region served by the Bonneville Power Administration. Consequently, that part of the state is also included in the activities of the Northwest Power and Conservation Council as well as the Northwest Energy Efficiency Alliance.

According to the Energy Information Administration, Montana utilities reported efficiency program savings of 43,329 MWh in 2007, 0.25% of total retail sales. Montana has commercial, residential, and residential low income natural gas efficiency programs implemented by the utilities and their subcontractors.  Programs were mandated by statute in 1997 as part of natural gas restructuring.

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A universal system benefits charge is assessed at the meter for each local utility system customer, first established by SB 390 and later modified by HB 337. Based on the funding levels required by legislation, the Commission establishes rates ($/kWh) for the utilities and the governing boards of cooperatives establish rates ($/kWh) for them. The companies' annual funding requirement is based on the rate multiplied by the current year annual kWh sales.

According to the Energy Information Administration, Montana utilities spent $6.7 million on energy efficiency in 2007, 0.52% of total spending. Natural gas efficiency programs are funded through a combination of tariff rates and public benefits funds, referred to in state statute as universal system benefits charges. 2007 natural gas efficiency expenditures were $1.6 million.

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None in place or proposed.

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None in place or proposed.

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MT statute (MT Code 69-3-712) allows for the PSC to add 2% to the authorized rate of return for DSM investments. It has not yet been approved for a utility.

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Consistent with Montana Public Service Commission Guidelines, NorthWestern completes an Electric Supply Resource Procurement Plan every two years, most recently filed in November 2007 (Docket No. N2007.11.138). Under Montana Code Annotated Sec. 69-8-419(2), the procurement process must evaluate "the full range of cost-effective electricity supply and demand-side management options."

Although energy efficiency is not prioritized within the plan, NorthWestern notes that energy efficiency programs help stabilize resource portfolio costs by reducing load. The annual DSM goal remains at 5 MW per year. The proposed savings of 5 MW per year diminishes the forecasted annual energy growth of supply customer load by nearly half.

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• Montana Public Service Commission

• Montana State Incentives for Renewables and Energy Efficiency

• Northwest Energy Efficiency Alliance

• Northwest Power and Conservation Council

• Montana Code Annotated - 2007

Last Updated 08/19/2009

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