1. (1) The independent evaluator shall oversee the competitive solicitation process for any acquisition, construction, or purchase of an electricity supply resource pursuant to 69-3-1207, MCA, and perform all functions contemplated by statute and Commission rules, to ensure the competitive solicitation process is conducted fairly, transparently, and consistently.

2. (2) The functions of the independent evaluator shall include the following:

   1. (a) evaluating the design of the competitive solicitation, including the draft solicitation;

      1. (i) the independent evaluator shall complete an assessment of the draft solicitation design and submit its assessment of the draft to the Commission when the utility files its draft with the Commission;
      2. (ii) the assessment shall review the adequacy, accuracy and completeness of all solicitation materials to ensure compliance with the Commission’s rules and consistency with accepted industry standards and practices;
   2. (b) monitoring communications between the utility and/or a third-party administrator and bidders;
   3. (c) reviewing and validating the assumptions, calculations, scoring, and ranking of any utility-owned resource options or resource portfolios containing utility-owned options;

   4. (d) analyzing the unique risks and advantages of all utility-owned resource options compared to contractual alternatives considering the following factors:

      1. (i) potential for construction delays and cost over-runs (considering contractual guarantees, cost and prudence of guarantees, remaining exposure to ratepayers for cost over-runs, and potential benefits of cost under-runs);
      2. (ii) projected forced outage rates;
      3. (iii) projected end effect values;
      4. (iv) projected emissions costs;
      5. (v) projected operation and maintenance costs;
      6. (vi) projected capital additions costs; and
      7. (vii) projected performance regarding output, heat rate, and power curve;
   5. (e) analyzing, operating, and validating all important models, modeling techniques, assumptions and inputs utilized by the utility in the competitive solicitation process, including the evaluation of bids;
   6. (f) independently scoring and ranking bids;

   7. (g) providing input to the utility on:

      1. (i) the development of bid screening and evaluation criteria and bid and portfolio scoring and ranking factors and evaluation methodologies that are reasonably designed to ensure the competitive solicitation process is fair, reasonable, and in the public interest, taking into consideration the assumptions included in the utility's most recent Least-Cost Integrated Resource Plan (IRP), any recently filed IRP supplement, any commission comments on the IRP or IRP supplement, and in any utility-owned resource options;
      2. (ii) whether a bidder has met the criteria specified in any request for qualifications and whether to reject or accept non-conforming request for qualifications responses;
      3. (iii) whether and when data and information should be distributed to bidders because it is necessary to facilitate a fair and reasonable competitive bidding process or has been reasonably requested by bidders;
      4. (iv) negotiation of proposed contracts with successful bidders; and
      5. (v) other matters as appropriate in performing the duties of the independent evaluator under the statute and commission rules;
   8. (h) ensuring that all bids are treated in a fair and non-discriminatory manner;

   9. (i) monitoring, observing, validating, and offering feedback to the utility, the commission, and the commission staff on all aspects of the competitive solicitation and competitive solicitation process, including:

      1. (i) content of the solicitation;
      2. (ii) evaluation and ranking of bid responses;
      3. (iii) creation of a short list(s) of bidders for more detailed analysis and negotiation;
      4. (iv) post-bid discussions and negotiations with, and evaluations of, short list bidders; and
      5. (v) negotiation of proposed contracts with successful bidders;
   10. (j) offering feedback to the utility on possible adjustments to the scope or nature of the competitive solicitation or requested resources in light of bid responses;
   11. (k) soliciting additional information on bids necessary for screening and evaluation purposes;
   12. (l) advising the commission at all stages of the process of any unresolved disputes or other issues or concerns that could affect the integrity or outcome of the competitive solicitation process;
   13. (m) analyzing and attempting to mediate disputes that arise in the competitive solicitation process with the utility and/or bidders, and present recommendations for resolution of unresolved disputes to the commission;
   14. (n) participating in future cost-recovery proceedings when the competitive solicitation results in resource selection.
3. (3) Communications between a utility and potential or actual bidders shall be monitored by the independent evaluator. Bidder questions and utility or third-party administrator responses shall be posted on an appropriate website.
4. (4) If at any time the independent evaluator becomes aware of any violation of any requirements of the solicitation process or Commission rules, the independent evaluator shall immediately notify the utility, the third-party administrator, if applicable, and the Commission. The independent evaluator shall report any actions taken by the utility and any other recommended remedies to the Commission.
5. (5) The independent evaluator shall document all substantive correspondence and communications with the utility and third-party administrator, if applicable, and shall make such documentation available to parties in any relevant proceedings upon proper request and subject to the terms of a protective order if the request contains or pertains to confidential information. Within 60 days after the end of the competitive solicitation process, the independent evaluator shall provide a copy of this documentation to the utility.
6. (6) The independent evaluator must file a report without confidential information in the docket opened pursuant to ARM 38.5.2024 after the utility has determined a final shortlist. The report must include analyses of the competitive solicitation process up to that point, including whether selected resources achieve the objective of minimizing costs to customers, considering risks, and whether the process was fair to all bidders.

7. (7) The independent evaluator must file a final closing report at the conclusion of the utility’s solicitation in the docket opened pursuant to ARM 38.5.2024. The closing report must include:

   1. (a) analyses of the utility's evaluation and selection of short-listed bids and resources;
   2. (b) the final results and whether the selected resource(s) are in the public interest;
   3. (c) comments and recommendations with respect to changes or improvements for a future competitive solicitation process and;
   4. (d) any other conclusions the independent evaluator deems appropriate.
8. (8) The closing report must explain any bid-ranking differences and why the independent evaluator and the utility were or were not able to reconcile the differences.
9. (9) The Commission may set a reasonable deadline for the independent evaluator’s completion of the closing report.
10. (10) All non-confidential information provided by the independent evaluator shall be considered for use in future prudency reviews or cost recovery proceedings placing the acquired resource into rates. All non-confidential information shall be contained in the docket open pursuant to ARM 38.5.2024.
11. (11) No stakeholder, including the utility, Commission, or Commission staff, shall have any editorial review or control over the independent evaluator's closing report.

Authorizing statute(s): 69-3-1207, MCA

Implementing statute(s): 69-3-1207, 69-3-1210, MCA

History: NEW, 2026 MAR, Notice No. 2026-298, Eff. 6/20/26.