Current through Register Vol. 6, March 22, 2024
(1) A person who wishes to obtain a
certification of the qualified portion of an alternating current transmission
line pursuant to
15-6-157(1)(q),
MCA, shall file an application on a form provided by the department pursuant to
ARM 17.80.201. The application must
contain the following information:
(a) the
name and address of the applicant;
(b) a description of the line for which
certification is sought, including its associated equipment and structures,
including interconnections;
(i) for lines
still under construction at the end of a tax year, this would be a general
description of the complete line, with a more detailed description of that
portion for which certification is sought;
(c) a listing of all wage rates paid for
construction of the transmission line in Montana, including its associated
equipment and structures, including interconnections;
(d) the date construction of the transmission
line, as defined in
15-24-3102, MCA, was commenced in
Montana;
(e) the total transfer
capability of the transmission line established through the Western Electricity
Coordinating Council (WECC) path rating process, or for transmission lines
which are not covered by the WECC path rating process, by the capability
determined by the balancing authority under whose jurisdiction the line
is;
(f) a list of the Montana
electricity generating facilities that are, or will be, class fourteen property
under 15-6-157, MCA, for which a firm
contract for transmission service, available throughout each year of the
contract, has been obtained, including:
(i)
the location, or proposed location, of each generating facility;
(ii) the period for which each facility has
secured firm contract for transmission service throughout each year;
(iii) documentation of the amount of firm
transmission on the line that has been secured for each generating facility
throughout each year. If this amount is not the same throughout the year, the
applicant shall describe the different amounts and the length of periods during
which those amounts apply; and
(iv)
name, address, and telephone number of contact person for each
facility.
(2)
The qualified portion of a transmission line will be based on the contracts for
firm transmission in place at the time of application for the initial ten years
of commercial operation, according to the following criteria:
(a) The qualified portion of a line for which
the amount of rated transfer capacity under firm contract for electricity
generated at class fourteen generating facilities is constant throughout the
year is that amount divided by the total transfer capability of that line
established through the applicable path rating process conducted either by WECC
or the balancing authority;
(b) The
qualified portion of a line for which the amount of rated transfer capacity
under firm contract for electricity generated at class fourteen generating
facilities varies throughout the year is the weighted average determined
according to the following formula: (amount for first period x number of days
in period + amount for next period x number of days in period...
)/365;
(c) For deliveries to load
on the line using firm transmission contracts for a blend of power from
multiple generating facilities, the amount that is deemed to come from class
fourteen facilities is the percentage of a delivery equaling the percentage of
the annual energy portfolio of the commodity provider that is generated from
class fourteen facilities located in Montana;
(d) For lines with a mix of contracts of
different length, the qualified portion is the average rated transfer capacity
under firm contract determined by the following formula: (annual amount for
first contract x contract length during averaging period + annual amount of
next contract x contract length during averaging period...) /length of
averaging period. The averaging period for the initial certification will be
the ten years following start of commercial operation.
(3) In making its certification
determination, the department shall use the application materials and also may
use any other credible information available to the department.
(4) Ten years after a transmission line
becomes commercially operational, the taxpayer shall submit to the department
an update of the information required in (1)(e) and (f). Based on this
information and any other credible information available to the department, the
department shall determine the current qualified portion of the transmission
line and reissue a certificate at that percentage.
(5) If the transmission line no longer has
contracts for firm transmission of electricity operated at class fourteen
facilities, the department shall revoke the certification.