Bill > SB406

This bill establishes the Montana Energy Conservation Efficiency Standards Act, which requires electric distribution utilities to implement energy conservation programs aimed at reducing electricity consumption. By December 31, 2026, utilities must achieve energy savings equivalent to at least 1% of their average annual kilowatt-hour sales from the previous five years. The bill mandates that utilities submit an energy conservation assessment every two years, completed by an independent entity, which will estimate achievable cost-effective energy conservation opportunities. The Public Service Commission will have rulemaking authority to oversee these programs, including evaluating program savings, establishing stakeholder processes, and developing methodologies for program funding and cost recovery. The bill also creates financial incentives for utilities that exceed their energy conservation targets, with a sliding scale that allows utilities to share in the economic benefits of energy savings: receiving 30% of benefits for modest over-performance and 40% for more significant achievements. Importantly, the legislation recognizes that utility-scale energy conservation can reduce electricity costs, improve grid reliability, and provide broader benefits like reducing greenhouse gas emissions and deferring investments in new generation infrastructure. The bill is designed to encourage investor-owned utilities to prioritize energy efficiency by providing a framework for implementation and potential financial rewards.