Senate Bill No. [insert bill number] establishes the "Montana Energy Conservation Efficiency Standards Act," which mandates investor-owned utilities in Montana to implement energy conservation programs aimed at achieving specific energy savings targets. The bill defines "energy conservation investments" and outlines the requirements for utilities to conduct energy conservation assessments, which must be completed by independent entities and updated every two years. Utilities are required to submit plans for acquiring cost-effective energy conservation, with annual targets set at a minimum of 1% of retail load. The bill also grants the commission authority to adopt rules for evaluating and approving these programs, ensuring that utilities can recover costs associated with energy conservation activities.

Additionally, the bill introduces performance-based incentives for utilities that exceed their established energy conservation targets, with a specified sharing ratio of net economic benefits between the utility and its customers. The commission is tasked with creating rules to implement these provisions while ensuring due process rights for utilities and public participation in proceedings. The act is set to take effect immediately upon passage and approval.