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

Montana Statutes

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

Montana § 69-3-1407

Title 69PUBLIC UTILITIES AND CARRIERS

Ch. 3REGULATION OF UTILITIES

Part 14Natural Gas Utility Restructuring and Customer Choice Act

This text of Montana § 69-3-1407 (Optional Performance-Based Ratemaking For Natural Gas Utilities -- Commission Rulemaking) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 69-3-1407 (2026).

Text

69-3-1407 . 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 ar

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69-3-1407 . 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.