Montana commission establishes criteria for NorthWestern Energy net metering study

The Montana Public Service Commission (MPSC) voted Tuesday to provide criteria for a study on net metering by NorthWestern Energy.

NorthWestern must be completed by April 1, 2018 to comply with a state law, HB 219, passed earlier this year. The law, sponsored by Rep. Zach Brown (D-District 63), ordered NorthWestern to conduct an analysis of the costs and benefits relate to customer-generators.

According to the law, the Commission may establish minimum information requirements that must be included in the utility’s study.

The PSC’s notice directs NorthWestern to evaluate benefits such as avoided energy and capacity the utility otherwise would have to purchase and costs such as integrating solar or wind energy onto the utility network.

“The law requires the Commission to focus solely on those factors that have a direct impact on the utility system and the provision of service to customers,” Commission Vice-Chairman Travis Kavulla said. “Broader social benefits such as job growth associated with solar installations are outside the purview of the PSC, and will not be included in the study.”

NorthWestern is required to submit its findings to the PSC as part of a general electric rate case. The company plans to file this rate case in September of 2018.

Based on the results of the study, the PSC will determine whether a separate rate and classification of service is needed for customer-generators. Customers with interconnecting net-metering systems prior to such an action would not be affected by these changes.