Montana § 69-3-1207 - Competitive Solicitation Process -- Independent Evaluator -- Public Service Commission Role

§ 69-3-1207. Competitive Solicitation Process -- Independent Evaluator -- Public Service Commission Role

Competitive solicitation process -- independent evaluator -- public service commission role. (1) (a) Except as provided in subsection (6), a public utility that intends to establish [rates] for the acquisition, construction, or purchase of an electricity supply resource shall conduct a competitive solicitation process. (b) A public utility may not prohibit a qualifying small power production facility as defined in 69-3-601 or another utility or supplier that owns an electricity supply resource or intends to construct an electricity supply resource from participating in a competitive solicitation process. (c) An independent evaluator must be used to oversee a public utility's competitive solicitation. The commission shall select the independent evaluator pursuant to subsection (4). (d) An independent evaluator: (i) shall monitor the evaluation of bids pursuant to a competitive solicitation; (ii) shall provide oversight to ensure a fair and transparent competitive solicitation; (iii) must be familiar with competitive bid and evaluation processes; and (iv) shall evaluate and document the process used by the public utility to solicit and evaluate bids received during a competitive solicitation. (e) A public utility may conduct a competitive solicitation in conjunction with the development of an integrated least-cost plan in accordance with 69-3-1204 . (2) A public utility that plans to conduct a competitive solicitation process shall submit the following information to the commission: (a) a description of the competitive solicitation process that the public utility will use and proof of compliance with subsections (1)(b) and (1)(c), if applicable; and (b) a complete draft of the proposal soliciting electricity supply resources, citing the requested resource parameters and inviting bids from all resource types. (3) The commission shall provide notice and accept public comment regarding information received in accordance with subsection (2). (4) (a) Subject to public comments received pursuant to subsection (4)(b), the commission shall: (i) solicit, evaluate, and maintain a list of independent evaluators for the competitive solicitation process; (ii) develop a process to disqualify and remove from the list those independent evaluators who do not comply with established qualifications or who may have a conflict of interest; (iii) update the list at least every 3 years; and (iv) after information is submitted to the commission in accordance with subsection (2) and subject to rules adopted by the commission pursuant to subsection (4)(c), select an independent evaluator from the list. (b) The commission shall accept public comment when developing and updating the list. (c) On or before July 1, 2026, the commission shall adopt rules for: (i) evaluating independent evaluators for inclusion on the list; (ii) selecting an independent evaluator in accordance with this section; (iii) implementing this subsection (4); and (iv) prescribing the scope of work for the independent evaluator pursuant to the duties in 69-3-1210 . (5) (a) The commission may charge a fee to the public utility to pay for the costs of selecting and representing an independent evaluator. This fee must be deposited in the state special revenue fund to the credit of the department for expenses incurred selecting the independent evaluator. These costs are recoverable in rates. (b) After the commission selects an independent evaluator in accordance with subsection (4), the public utility shall execute a contract for service with the independent evaluator. The contract must include the scope of work developed pursuant to subsection (4)(c)(iv) and the duties in 69-3-1210 . (6) This section does not apply to: (a) a request for proposals or purchase by a public utility intended solely to meet the short-term operational needs of the utility for a period of less than 12 months; or (b) an application made to the commission by a public utility to acquire, construct, or purchase an opportunity resource. (7) For the purposes of this section, "opportunity resource" means an electricity supply resource necessary to meet a need demonstrated in a plan in accordance with 69-3-1204 (2)(a)(iv) that is either new or existing and that remains unknown as to its availability for purchase until an opportunity to purchase arises.