TITLE 69. PUBLIC UTILITIES AND CARRIERS

CHAPTER 3. REGULATION OF UTILITIES

Part 20. Renewable Power Production and Rural Economic Development

Cost Caps

69-3-2007. Cost caps. (1) A public utility that has restructured pursuant to Title 69, chapter 8, is not obligated to take electricity from an eligible renewable resource unless the eligible renewable resource has demonstrated through a competitive bidding process that the total cost of electricity from that eligible resource, including the associated cost of ancillary services necessary to manage the transmission grid and firm the resource, is less than or equal to bids for the equivalent quantity of power over the equivalent contract term from other electricity suppliers.

(2) A public utility that has not restructured pursuant to Title 69, chapter 8, is not obligated to take electricity from an eligible renewable resource unless the cost per kilowatt hour of the generation from the renewable resource does not exceed by more than 15% the cost of power from any other alternate generating resource available to the public utility.

(3) A competitive electricity supplier is not obligated to take electricity from an eligible renewable resource unless the total cost of the electricity from that eligible renewable resource, including ancillary services, is less than or equal to a cost cap determined by the commission based on:

(a) the cost of alternate power supplies available to the competitive electricity supplier; and

(b) the cost caps applicable to other utilities under this section.

History: En. Sec. 7, Ch. 457, L. 2005; Sec. 69-8-1007, MCA 2005; redes. 69-3-2007 by Sec. 1, Ch. 220, L. 2007; amd. Sec. 4, Ch. 246, L. 2007.