A BILL FOR AN ACT ENTITLED: "AN ACT generally revising integrated least-cost resource planning laws; providing for competitive solicitation processes; requiring open competition in COMPETITIVE solicitations; providing rulemaking authority; and PROVIDING AN IMMEDIATE EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Purpose. The purpose of [sections 2 through 4] is to ensure that least-cost resource planning in electric service is implemented so that all resources may participate in a competitive bidding process in order to:
(1) meet the energy demands of the state;
(2) ensure affordability of this essential service for citizens of the state;
(3) help the business community thrive and be competitive with other states;
(4) foster economic development; and
(5) help safeguard the health and welfare of Montana citizens.
NEW SECTION. Section 2. Definitions. As used in [sections 3 and 4], the following definitions apply:
(1) "Affiliate" means an entity of the electric distribution that is either corporately separated or contained in a separate division of the electric distribution utility that engages in competitive businesses.
(2) "Distributed energy resources" means any resource or activity at or near customer loads that generates energy or reduces energy consumption. Distributed energy resources include customer-site generation, such as solar photovoltaic systems and emergency backup generators, as well as energy efficiency and controllable loads, such as demand response.
(3) "Distributed generation" means power generation produced at the point of consumption, close to the end users of the power, rather than centrally located and dispatched.
(4) "Electric distribution utility" or "utility" means an electric utility that supplies at a minimum retail electric distribution service and is regulated by the commission.
(5) "Energy resources" means all resources available to provide adequate service to end users and includes both supply-side resources and demand-side resources furnished by a utility or third party.
(6) "Infrastructure costs" means all costs to connect an energy resource to the utility or to enable the fuel supply for an energy resource to be delivered to that resource.
(7) "Integrated resource plan" means a plan that considers all reasonable resources to satisfy the demand for electric power services during a specific period of time, including those relating to the offering of electric power through all resources either on the supply side or demand side.
NEW SECTION. Section 3. Authority of the commission -- rulemaking. (1) The commission shall adopt rules regarding the implementation of competitive bidding processes established in [section 4].
(2) The commission may initiate investigations or proceedings or issue orders to carry out the necessary steps to implement the following:
(a) establish any regulations that the commission considers necessary as to the conduct of third-party providers;
(b) establish and oversee the process to obtain competitive bids, including approval of the competitive bid that is selected;
(c) ensure that the quantities of capacity and energy sought in the competitive bidding process are consistent with the findings of the integrated resource plan;
(d) ensure the fairness of the entire competitive bidding process, including but not limited to the development of the request for proposal and the decision on the winning bidder; or
(e) prohibit an electric distribution company, its parent company, or its affiliates from participating in the competitive bidding process if the commission determines that their participation cannot be done in a manner that does not give them a competitive advantage or if their participation would discourage other potential bidders from participating in the competitive bidding process.
NEW SECTION. Section 4. Competitive bidding process. (1) In addition to the requirements of 69-3-1207, all competitive bid solicitations must enable all energy resources to compete in order to ensure that the least-cost resource is selected and that all resources have a fair opportunity to compete.
(2) In evaluating the competitive bid responses, all costs must be considered, including infrastructure costs.
(3) If an electric distribution company, its parent company, or an affiliate participates in the competitive bidding process as a competitive bidder, the commission shall take appropriate steps to ensure that the parent company or the affiliate participating in a competitive bid process receives no unfair advantage.
NEW SECTION. Section 5. Codification instruction. (1) [Sections 1 through 4] are intended to be codified as an integral part of Title 69, chapter 3, part 12, and the provisions of Title 69, chapter 3, part 12, apply to [sections 2 through 4].
NEW SECTION. Section 6. Effective date. [This act] is effective on passage and approval.