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New Conservation Gets a Boost in Montana
Energy conservation advocates last month convinced the Montana Department of Revenue (DOR) that the state's utilities and industries should not use Universal System Benefits Charge (USBC) investments to pay for past energy conservation. The DOR's final rules direct USBC investments only toward measures implemented since passage of Montana's utility restructuring law. Conservation groups and the Montana Power Company together argued the reason for passing the USBC was to stimulate new clean energy investments. The DOR rejected arguments presented by the Electric Coop Association and Columbia Falls Aluminum that the conservation they are currently paying for through Bonneville Power Administration rates should count toward their USBC obligation.
The DOR rules also allow large industrial customers to direct their USBC investments toward any qualifying measure regardless of whether it targets that industrial customer. The original rules did not allow industrial customers to invest in conservation measures outside their own facilities. Under the final rule, large users can make a charitable donation to a qualifying low-income energy assistance program such as Energy Share of Montana . From the large customers' point of view, this rule change could allow them to meet their USBC obligation and get a tax break for making a charitable contribution. Environmental advocates worry allowing large industrial customers to self direct their USBC investments toward energy assistance programs may reduce investments in energy conservation and renewable resources.
Nancy Hirsh