{"data":{"id":"us-mt/69-3-1407","jurisdiction":"us-mt","citation":"69-3-1407","heading":"Optional performance-based ratemaking for natural gas utilities -- commission rulemaking.","body":"(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.\n(2) The commission may approve a performance-based ratemaking methodology if it finds that the methodology:\n(a) preserves adequate service to all classes of customers, including transportation-only customers;\n(b) does not unreasonably prejudice or disadvantage any class of natural gas utility users;\n(c) provides incentives for improved performance by the natural gas utility in the natural gas utility's public duties;\n(d) results in rates that are not excessive; and\n(e) is in the public interest.\n(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:\n(a) natural gas service to one or more classes of customers has deteriorated or will deteriorate;\n(b) any class of natural gas utility customer is being unreasonably prejudiced or disadvantaged;\n(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;\n(d) rates are excessive compared to a natural gas utility's cost of service;\n(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\n(f) the performance-based form of regulation is not in the public interest.\n(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.","path":["TITLE 69. PUBLIC UTILITIES AND CARRIERS","CHAPTER 3. REGULATION OF UTILITIES","Part 14. Natural Gas Utility Restructuring and Customer Choice Act"],"source_url":"https://mca.legmt.gov/bills/mca/title_0690/chapter_0030/part_0140/section_0070/0690-0030-0140-0070.html","current_through":"Montana Code Annotated 2025","vintage":"","retrieved_at":"2026-09-14T04:58:14Z","sha256":"e331a23bef4013947a3e31f200c6b3a12ad644bbfe3908eced5938a1618bc5e2","source_id":"us-mt","stale":false,"prev":"us-mt/69-3-1406","next":"us-mt/69-3-1408"},"notice":"GroundRules: Original legal text. Not legal advice."}