Montana Senate Bill SB406

Montana 2025 Regular Session

• Introduced: 2/21/25
• Refer: 2/24/25

Caption

Establishing utility energy conservation efficiency standards

Impact

The legislation outlines specific requirements for electric distribution utilities to implement energy conservation programs that achieve a set percentage of total annual energy sales by a specified target date. This includes an incremental energy savings target of at least 1% of normalized kilowatt-hour sales per year. Utilities are also required to conduct energy assessments, submit regular evaluations, and report on the effectiveness of their conservation efforts, which ensures their accountability and helps account for diverse factors influencing energy savings.

Summary

Senate Bill 406, titled the 'Montana Energy Conservation Efficiency Standards Act', aims to establish mandatory energy conservation efficiency standards for investor-owned utilities in Montana. The bill mandates that these utilities pursue cost-effective energy conservation initiatives to enhance reliability and reduce electricity costs for consumers. One of the primary motivations behind this legislation is to address the excessive peaks in electricity demand that strain the grid and raise customer bills, with an emphasis on promoting energy conservation instead of merely increasing electricity sales.

Sentiment

Overall, the sentiment surrounding SB 406 seems to lean towards a positive reception among environmental advocates and some regulatory bodies, who see it as a necessary step towards sustainability and grid reliability. However, there may be opposition from certain industry stakeholders who are concerned about the costs of implementing these programs and the potential impact on utility revenues. The bill represents a progressive move towards energy efficiency in the state, aligning utility practices with contemporary energy demands and sustainability goals.

Contention

Notable points of contention regarding SB 406 may arise from debates over the effectiveness and feasibility of mandated energy savings targets. Utilities may argue that the implementation of these standards could place additional financial burdens on them, especially in terms of the required energy assessments and program evaluations. Critics might also raise concerns about the potential for unintended consequences, such as the impact on lower-income customers who may face difficulties in participating in new energy efficiency programs without adequate support.