Montana § 69-3-1407 - Optional Performance-Based Ratemaking For Natural Gas Utilities -- Commission Rulemaking

§ 69-3-1407. Optional Performance-Based Ratemaking For Natural Gas Utilities -- Commission Rulemaking

Optional performance-based ratemaking for natural gas utilities -- commission rulemaking. (1) The commission may, upon application and after giving notice and conducting a hearing as provided in 69-3-303 , authorize any natural gas utility to implement an optional form of rate regulation using a performance-based ratemaking methodology. (2) The commission may approve a performance-based ratemaking methodology if it finds that the methodology: (a) preserves adequate service to all classes of customers, including transportation-only customers; (b) does not unreasonably prejudice or disadvantage any class of natural gas utility users; (c) provides incentives for improved performance by the natural gas utility in the natural gas utility's public duties; (d) results in rates that are not excessive; and (e) is in the public interest. (3) The commission may, after giving notice and conducting a hearing as provided in 69-3-303 , modify or discontinue a natural gas utility's performance-based ratemaking previously authorized under this section if the commission finds that: (a) natural gas service to one or more classes of customers has deteriorated or will deteriorate; (b) any class of natural gas utility customer is being unreasonably prejudiced or disadvantaged; (c) the performance-based ratemaking is not providing or will not provide reasonable incentives for improved performance by a natural gas utility in the performance of its public duties; (d) rates are excessive compared to a natural gas utility's cost of service; (e) terms ordered by the commission in connection with the approval of a natural gas utility's implementation of performance-based ratemaking have been violated; and (f) the performance-based form of regulation is not in the public interest. (4) The commission shall promulgate rules for monitoring a natural gas utility that has implemented performance-based ratemaking to ensure that the natural gas utility is in compliance with the requirements of this section.