Amendments to senate Bill No. 176

2nd Reading Copy

Requested by Brad Molnar

For the (S) Committee of the Whole

Prepared by Trevor Graff

04/06/2021, 09:31:08

1. Title, line 11.

Following: "UNIT;"

Insert: "PROVIDING FOR THE RATE BASING OF CERTAIN MAINTENANCE COSTS AND TRANSMISSION CAPACITY IN THE CASE OF ABANDONMENT AND UNDER SPECIFIC CIRCUMSTANCES;"

2. Page 14, line 1.

Strike: "If"

Insert: "Except as provided in subsections (1)(c) through (1)(e), if"

3. Page 14.

Following: line 6

Insert: "(c) Subject to subsection (1)(e), if an owner ceases to maintain its ownership interest in a coal-fired generating unit and abandons its ownership interest or ceases to maintain its ownership interest and ceases to operate the coal-fired generating unit while other owners have a continued need to utilize power generated by the coal-fired generating unit, a utility regulated by the public service commission in accordance with Title 69, chapter 3, may fund maintenance and repair costs for a single maintenance cycle in accordance with subsection (1)(d) to continue operation of the unit.

(d) Costs incurred to provide maintenance and repair costs and for the procurement of transmission capacity and services for a single maintenance cycle in the event of an owner ceasing to maintain its ownership interest in accordance with subsection (1)(c) and transmission capacity required in subsection (1)(e), may be included in the regulated utility's rate base in accordance with a public service commission order providing for the inclusion.

(e) A transfer of maintenance and repair costs in accordance with subsection (1)(d) also must include an agreement to maintain sufficient operational transmission capacity to serve the new acquisition of generation. The value of the capacity must be determined based on transmission agreements as originally signed by the owners."

4. Page 14, line 7.

Strike: "Montana"

Insert: "Except as provided in subsections (1)(c) through (1)(e),"

5. Page 14.

Following: line 8

Insert: "(3) The commission may not allow a facility acquired in accordance with this section to be rate-based at a value higher than that of newly constructed natural gas generation located within a utility's Montana service territory."

Renumber: subsequent subsection