The proposed bill, titled the "Montana Energy Conservation Efficiency Standards Act," aims to establish energy conservation efficiency standards for investor-owned utilities in Montana. It mandates that these utilities implement energy conservation programs that achieve energy savings equivalent to at least 1.0% of their total annual average normalized kilowatt-hour sales over the preceding five years or as identified in their most recent energy conservation assessment. The bill outlines the requirements for utilities to conduct energy conservation assessments, which must be completed by independent entities and updated every two years. Additionally, it provides the commission with rulemaking authority to create guidelines for evaluating, verifying, and measuring program savings, as well as for the allocation of program funds.

The bill also includes provisions for cost recovery and incentives for utilities that exceed established energy conservation targets. It stipulates that the commission shall allow timely recovery of costs associated with energy conservation activities and create performance-based incentives that share the net economic benefits of energy conservation between the utility and its customers. The commission is tasked with ensuring that the due process rights of utilities are respected and that the public can participate in proceedings related to energy conservation acquisition. The act is set to take effect immediately upon passage and approval.