17-6-704. Investment criteria. (1) The board of investments shall review applications from proposed new electrical generation facilities and existing qualified facilities for in-state investments pursuant to Title 17, chapter 6, part 3. In order to make an investment in a new electrical generation facility or an existing qualified facility, the board shall determine that:
     (a) the project promotes economic development in Montana and creates or maintains employment opportunities in Montana;
     (b) the construction of the project will provide stable electrical energy rates for Montanans who rely on the default supplier for electrical energy;
     (c) the project will maintain environmental quality consistent with state and federal standards; and
     (d) the project possesses long-term economic prospects consistent with the obligation to provide electrical energy generation capacity and electrical energy for the term of the contracts as required in 17-6-705.
     (2) A project selected by the board must be collateralized by payments for the sale of the electricity produced by the project to the default supplier or a Montana industry at rates not in excess of 5 cents per kilowatt hour plus annual escalations equal to the inflation rate. A payment may be made from the assets of the state if the default supplier or its assignee or a Montana industry fails to pay the approved project for energy delivered in order to maintain the supply of energy to Montana. The state must be a party to the contract and may bring a cause of action against the default supplier or a Montana industry for nonpayment.

     History: En. Sec. 4, Ch. 577, L. 2001.