Montana PBF/ USF History, Legislation, Implementation
Legislation Cite and Date
69-8-101 - 69-8-503 (electric) (5/97)
SB 396 (gas) (5/97)
Low-Income Provisions
1997 restructuring legislation established an electric universal systems benefits charge (USBC), all utilities were required to set aside 2.4 percent of their retail sales revenues (based on 1995 levels) to fund "energy conservation, renewable resource projects and applications, and low-income energy assistance" through July 1, 2003. The 2001 legislature extended the USBC through December 2005 and the 2005 legislature extended it through 2009. The 2009 legislature removed the termination date and the Montana Public Service Commission made permanent the existing low-income bill discount through the state’s largest utility.
Legislation restructuring the gas industry in 1997 also established a USBC which all natural gas transmission or distribution service providers began charging to all end users in May 1997.
Low-Income Rate Assistance
The electric and gas USBC covers utilities' costs for low-income discounts and Energy Share, a fuel fund that provides emergency bill assistance.
Low-Income Conservation
The USBC covers utilities' costs for low-income weatherization.
Annual Funding (2008)
Rate Assistance: $3.5 million
Conservation: $1.2 million
Funding Mechanism
Electric: universal system benefits charge, 21 percent of the system benefits pool is allocated for low-income energy and weatherization assistance.
Gas: universal system benefits charge, a minimum of 0.42 percent of the utility's previous year's revenue funds conservation and low-income energy bill assistance.
Administration
Utilities and Montana Public Service Commission
Pre-Restructuring Funding
Rate Assistance: $853,000
Conservation: $650,000
Page Last Updated: January 27, 2010
