House bill NO. 729

INTRODUCED BY S. Galloway, S. Kerns, S. Gist, L. Sheldon-Galloway, L. Brewster, K. Seekins-Crowe, F. Nave, M. Hopkins, J. Gillette, G. Oblander, T. Brockman, M. Yakawich, C. Friedel, G. Kmetz, J. Etchart, B. Phalen, L. Deming, E. Butcher

By Request of the ****

A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING FOR ADVANCED CONDUCTOR COST-EFFECTIVENESS CRITERIA; ALLOWING ADVANCED CONDUCTOR RATE BASING; PROVIDING A DEFINITION; amending section 69-3-702, MCA; and PROVIDING AN IMMEDIATE EFFECTIVE DATE.

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

Section 1. Criteria for allowable advanced conductor programs. (1) The commission may approve cost-effectiveness criteria for advanced conductor projects that may be placed into a utility's rate base under this part.

(2)        Criteria must be based on established direct current resistance at standard pressure and a temperature of 20 degrees Celsius.

(3)        As used in this section, "advanced conductor" means an overhead electricity conductor installed in a transmission or distribution project that has a direct current electrical resistance at least 10% lower than existing conductors of a similar diameter on the system.

(4)        In establishing cost-effectiveness criteria, the commission may consider decreased electrical losses and any other relevant consumer, environmental, and system benefits provided by advanced conductors.

Section 2. Section 69-3-702, MCA, is amended to read:

"69-3-702. Eligible conservation. Conservation purchases or investments are eligible under this part if they are provided for in 69-3-1206 and in accordance with [section 1] or 69-3-1209."

Section 3. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 69, chapter 3, part 7, and the provisions of Title 69, chapter 3, part 7, apply to [section 1].

Section 4. Effective date. [This act] is effective on passage and approval.