The bill amends Section 69-3-604 of the Montana Code Annotated to revise the standards for determining rates and conditions for the sale of electricity by qualifying small power production facilities. A significant change includes the requirement for the commission to calculate the integration costs associated with connecting these facilities to the transmission system, which must be subtracted from the avoided cost rates. Additionally, the bill introduces a definition for "integration costs," encompassing all incremental costs related to adding a small qualifying facility to the electrical grid, such as balancing costs and operating reserves.

Furthermore, the bill encourages long-term contracts for electricity purchases from qualifying small power production facilities to enhance their economic feasibility. It also allows the commission to adopt rules to further define the criteria for these facilities and their cost-effectiveness. The act is set to take effect immediately upon passage and approval, but it will not apply to any applications that are pending before the commission at the time of its enactment.

Statutes affected:
Introduced: 69-3-604