_____________ bill NO. _____________

INTRODUCED BY _________________________________________________

By Request of the ****

A BILL FOR AN ACT ENTITLED: "AN ACT PROHIBITING A UTILITY FROM LEVYING A DEMAND CHARGE ON SMALL CUSTOMERS; PROVIDING DEFINITIONS; and PROVIDING AN IMMEDIATE EFFECTIVE DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Definitions. As used in this part, unless the context clearly indicates otherwise, the following definitions apply:

(1) "Demand charge" means an additional charge placed on an electric customer's bill based on the highest peak electric usage measured over a specific time period, typically 15 minutes, as provided in the public utility's electric tariff.

(2) "Small customer" means a customer that uses less than 27,000 kilowatt hours of electricity per year.

(3) "Utility" means a public utility regulated under Title 69, chapter 3, that is not an electric cooperative.

NEW SECTION. Section 2. Demand charge prohibition. (1) A utility may not assess a demand charge on a small customer if the small customer uses less than 27,000 kilowatt hours of electricity a year measured between January 1 and December 31 of each calendar year.

(2) Beginning January 1, 2021, a utility must remove the demand charge from a small customer's 2020 bill when the customer used less than 27,000 kilowatt hours of electricity.

(3) The utility may reestablish the demand charge in the calendar year following a year in which the small customer used more than 27,000 kilowatt hours of electricity.

NEW SECTION. Section 3. Codification instruction. [Sections 1 and 2] are intended to be codified as an integral part of Title 69, and the provisions of Title 69 apply to [sections 1 and 2].

NEW SECTION. Section 4. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

NEW SECTION. Section 5. Effective date. [This act] is effective on passage and approval.