Mont. Code Ann. » TITLE 69. PUBLIC UTILITIES AND CARRIERS · CHAPTER 3. REGULATION OF UTILITIES · Part 6. Small Power Production Facilities
Montana Code Annotated

Mont. Code Ann. § 69-3-604 (2026)

Standards For Determination Of Rates And Conditions

✓ current as of May 2026
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  1. MCA Contents
  2. TITLE 69
  3. CHAPTER 3
  4. Part 6
  5. 69-3-604 Standards for determination of rates and conditions

TITLE 69. PUBLIC UTILITIES AND CARRIERS

CHAPTER 3. REGULATION OF UTILITIES

Part 6. Small Power Production Facilities

Standards For Determination Of Rates And Conditions

69-3-604. (Temporary) Standards for determination of rates and conditions. (1) The commission shall determine the rates and conditions of the contract for the sale of electricity by a qualifying small power production facility according to the standards in subsections (2) through (6).

(2) Long-term contracts for the purchase of electricity by the utility from a qualifying small power production facility must be encouraged in order to enhance the economic feasibility of qualifying small power production facilities.

(3) The rates to be paid by a utility for electricity purchased from a qualifying small power production facility must be established with consideration of the availability and reliability of the electricity produced.

(4) The commission shall set these rates using the avoided cost over the term of the contract.

(5) Avoided cost rates may not include a bonus or adder to provide additional compensation for environmental externalities or other costs above avoided costs, except when a bonus or adder is necessary to compensate for a real and actual cost required by existing regulation or existing law.

(6) The commission may adopt rules further defining the criteria for qualifying small power production facilities, their cost-effectiveness, and other standards. (Repealed on occurrence of contingency--secs. 1, 3, Ch. 284, L. 2003--see part compiler's comment.)

History: En. Sec. 4, Ch. 436, L. 1981; amd. Sec. 3, Ch. 232, L. 1983; amd. Sec. 1, Ch. 60, L. 2011; amd. Sec. 1, Ch. 300, L. 2021.

Notes of Decisions
Cited in 4 cases, 2010–2020 · leading case: Whitehall Wind, LLC v. Montana Pub. Serv. Comm'n, 2010 MT 2, 223 P.3d 907.
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Whitehall Wind, LLC v. Montana Pub. Serv. Comm'n, 2010 MT 2, 223 P.3d 907. · cites it 5× “Section 69-3-604, MCA; Admin. R. M. 38.5.”
Vote Solar v. PSC, 2020 MT 213. · cites it 20× “” Staff found that Montana’s statute requiring long-term contracts to enhance the economic feasibility of QFs, § 69-3-604, MCA, is “central to the determination of contract length in Montana, and without knowledge of contextual policy for QFs in other states, staff recommends…”
Mtsun v. Psc, 2020 MT 238. · cites it 5× “” Section 69-3-604, MCA. NorthWestern’s Motion to Stay the District Court’s Order ¶48 On July 15, 2019, NorthWestern filed a motion with this Court to stay the District Court’s order.”
Vote Solar v. PSC, No. DA 19-0223 (Mont. Oct. 6, 2020). · cites it 20× “” Staff found that Montana’s statute requiring long-term contracts to enhance the economic feasibility of QFs, § 69-3-604, MCA, is “central to the determination of contract length in Montana, and without knowledge of contextual policy for QFs in other states, staff recommends…”
Mont. Code Ann. § 69-3-604(2): 2 cases
Vote Solar v. PSC, 2020 MT 213. “” Staff found that Montana’s statute requiring long-term contracts to enhance the economic feasibility of QFs, § 69-3-604, MCA, is “central to the determination of contract length in Montana, and without knowledge of contextual policy for QFs in other states, staff recommends…”
Vote Solar v. PSC, No. DA 19-0223 (Mont. Oct. 6, 2020). “” Staff found that Montana’s statute requiring long-term contracts to enhance the economic feasibility of QFs, § 69-3-604, MCA, is “central to the determination of contract length in Montana, and without knowledge of contextual policy for QFs in other states, staff recommends…”
Mont. Code Ann. § 69-3-604(4): 2 cases
Vote Solar v. PSC, 2020 MT 213. “” Staff found that Montana’s statute requiring long-term contracts to enhance the economic feasibility of QFs, § 69-3-604, MCA, is “central to the determination of contract length in Montana, and without knowledge of contextual policy for QFs in other states, staff recommends…”
Vote Solar v. PSC, No. DA 19-0223 (Mont. Oct. 6, 2020). “” Staff found that Montana’s statute requiring long-term contracts to enhance the economic feasibility of QFs, § 69-3-604, MCA, is “central to the determination of contract length in Montana, and without knowledge of contextual policy for QFs in other states, staff recommends…”
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