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PSC approves interim propane supply rate for Abaco, denies requested 1¢/gallon administrative fee
Summary
The Montana Public Service Commission on July 28 approved an interim propane supply rate for Abaco Energy Services LLC tied to pass-through costs in a Midstream Energy Partners LLC contract, but rejected the utility’s requested 1¢ per gallon administrative fee; the adjustment takes effect Aug. 1, 2026.
The Montana Public Service Commission voted unanimously July 28 to approve an interim propane supply rate adjustment for Abaco Energy Services LLC while denying a requested 1¢ per gallon administrative fee. Vice President Felder moved the motion, Commissioner Bukacek seconded it and the measure passed 4–0.
Staff attorney Jera Wilsey told commissioners that Abaco filed the two-part application (docket 2026.07.041) on July 1, 2026, seeking supply-rate adjustments for the period June 1, 2026, through May 31, 2027, and approval of its 2025–2026 propane cost tracker. "Staff recommends that the commission approve the portion of Abaco's proposed rate adjustment that reflects pass through propane supply costs and deny the 1¢ per gallon float rate administrative fee, which is not authorized under Abaco's existing tariffs," Wilsey said.
Wilsey said Abaco selected Midstream Energy Partners LLC through a competitive RFP process and that the proposed fixed and float-rate adjustments reflect that supplier contract. Staff recommended that the approved supply-rate adjustments take effect on Aug. 1, 2026, and that staff be authorized to make clerical or non‑substantive edits to the draft interim order prior to issuance.
Commissioners discussed precedent and the proper forum for administrative-cost recovery. Laura Bajowski, staff attorney, explained that administrative costs traditionally are addressed in a general rate case rather than in a tracker or interim adjustment, and staff had not performed discovery to substantiate the need for the additional fee. Vice President Felder said he appreciated staff's review of past decisions, adding, "Although 1¢ sounds very small, those administrative costs have to be handled in general rate cases."
The commission’s action approves pass-through supply costs tied to the supplier contract, denies the 1¢/gallon administrative charge, and directs the interim order be issued as the commission's final interim order with an effective date of Aug. 1, 2026. The commission also authorized staff to make non-substantive edits to the order.
