Administrative Rules of Montana › Department 38 - PUBLIC SERVICE REGULATION › Chapter 38.5 - UTILITY DIVISION › Subchapter 38.5.43 - Montana Energy Impact Assistance Financing › Rule 38.5.4303 - MONTANA ENERGY IMPACT ASSISTANCE FINANCING

Current through Register Vol. 13, July 5, 2024
(1)
				If an electric utility applies to the commission to approve a financing order
				pursuant to the Montana Energy Impact Assistance Act, the electric utility's
				application to the commission must describe how such financing satisfies or
				follows from a plan developed pursuant to
				69-3-1201
				et seq., MCA, and any responsive commission comments.
(2) An application for a Montana Energy
				Impact Assistance Act financing order must be consistent with the relevant
				statutory requirements in
				69-3-1601
				through
				69-3-1623,
				MCA, and include the following minimum filing requirements:
(a) testimony and workpapers providing an
				estimated schedule for the retirement or replacement of the electric
				infrastructure or facilities subject to the application;
(b) testimony and workpapers specifying the
				electric infrastructure or facilities to be retired or replaced, and the
				effects of the proposed financing on the retirement or replacement, including a
				description of the applicable electric infrastructure or facilities'
				contribution to the electric utility's rate base and the applicable reduction
				to rate base upon the inception of the collection of Montana energy impact
				assistance charges;
(c) testimony
				and workpapers describing the amount and terms of the proposed securitization,
				including the Montana energy impact assistance costs and financing costs
				associated with the retirement or replacement;
(d) testimony and workpapers describing the
				proposed methodology for allocating the revenue requirement for the Montana
				energy impact assistance charge among customer classes;
(e) testimony and workpapers describing the
				nonbypassable Montana energy impact assistance charge required to be paid by
				customers within the electric utility's service area for the recovery of the
				Montana energy impact assistance costs;
(f) testimony and workpapers estimating the
				net present value of electric utility customer savings expected to result if
				the financing order is issued using a net present value comparison between the
				costs to customers that are expected to result from the financing of the
				undepreciated balances of electric infrastructure or facilities with Montana
				energy impact assistance bonds and the costs that would result from the
				application of traditional electric utility financing mechanisms to the same
				undepreciated balances;
(g)
				testimony and workpapers demonstrating one or more alternative financing
				scenarios in addition to the preferred scenario contained in the application.
				The alternative scenarios shall include various bond lengths with sensitivity
				analyses of associated interest rates, and compare electric utility customer
				savings under each scenario;
(h)
				testimony and workpapers describing the proposed billing mechanism to collect
				the Montana energy impact assistance charges from the electric utility
				customers, including proposed tariff sheets;
(i) a copy of the proposed Montana energy
				impact assistance bonds;
(j)
				testimony and workpapers describing the proposed true up mechanism to adjust
				for any over/undercollections of Montana energy impact assistance
				charges;
(k) testimony and
				workpapers describing the proposed method to remove the applicable electric
				infrastructure or facilities from the electric utility's rate base upon the
				inception of the collection of Montana energy impact assistance charges;
				and
(l) if approval for the use of
				any remaining Montana energy impact assistance bond proceeds is not requested
				in the application, testimony providing a general description and timeframe of
				the electric utility's anticipated use of such proceeds in compliance with
				69-3-1623,
				MCA.