MT SB406

Electric distribution utilities must implement energy conservation programs by December 31, 2026, achieving savings of at least 1.0% of their 5-year average normalized kilowatt-hour sales annually

Utilities must submit an independent energy conservation assessment to the Public Service Commission within 2 years, updated every 2 years, estimating all achievable cost-effective conservation through December 31, 2027

Performance-based incentives share net economic benefits between utilities and customers when conservation exceeds annual targets: 70/30 split (customers/utility) for exceeding by 0.25% of load, 60/40 split for exceeding by 0.5% of load

Energy conservation investments include efficient industrial motors, transmission upgrades, LED lighting programs, high-efficiency appliances, heat pumps, and smart thermostats

The commission must adopt rules for program evaluation, stakeholder input, cost allocation by customer class, and public education, with a maximum 20-year timeframe for acquiring total achievable conservation