1. (1) For Montana state and local taxes and fees and for other states' taxes, excluding income taxation, which are allocated to rates authorized by the commission and by other state utility commissions:

   1. (a) the utility shall disclose and explain the allocation methodology of these expenses to Montana customers and to customers of other states; and

   2. (b) the utility shall provide a statement including data for the last three years and for the coming year, which:

      1. (i) discloses the actual tax expense attributable to each jurisdiction under the last approved allocation methodology of the commission; and
      2. (ii) provides an estimate of the amount of revenue attributable to these taxes the utility had projected to earn based on the tax expense in rates of its last general rate case filings in those jurisdictions, inflated or deflated by the projected growth in sales volumes of units whose rates include tax-related expense.

2. (2) For the purposes of making findings on questions of jurisdictional separations for the purposes of including tax expense into rates, the commission, upon evaluating the information provided pursuant to this section and other information which it may possess, may find errors that lead to adjustments in rates for reasons including, but not limited to, the following:

   1. (a) that an allocation methodology inaccurately allocates the expense or the revenue, or both, to customers of different jurisdictions; or
   2. (b) that revenues from other jurisdictions' customers are sufficient to satisfy the utility's liability for Montana state and local taxes and fees.

Authorizing statute(s): 69-3-103, 69-3-310, MCA

Implementing statute(s): 69-3-201, 69-3-202, 69-3-302, 69-3-308, MCA

History: NEW, 2017 MAR p. 790, Eff. 6/10/17.