MT: Utility wants demand charge for NEM systems


Montana-Dakota Utilities has filed a rate case in Montana, seeking an annual increase of $11.8 million (21.1%), with a return on equity of 10% and an overall rate of return of 7.588%. MDU has proposed numerous changes to its tariffs, including higher fixed charges and major revisions to its net-metering tariff.

With respect to net metering, MDU would expand the rate’s applicability to solar-thermal, biomass and geothermal systems (in addition to solar PV, wind and hydro systems). It would also impose a residential demand rate of $1.50/kW of billed demand. Small business customers also must pay a demand charge based on the applicable rate under their existing tariff. The billed demand is calculated based on the customer’s maximum 15-minute demand in the current month.