(1) Together with an application for an automatic rate adjustment for Montana state and local taxes and fees under 69-3-308, MCA, a utility will identify an allocation of Montana state and local taxes and fees to plant by FERC account.

(2) In making the allocation of taxes to plant type, the utility will identify and explain its methodology, which may be informed by both the books and records of the utility company's capital investments and by the allocation of value to taxing jurisdictions by governmental authorities and by other factors the utility and the commission consider reasonable.

(3) The utility will provide FERC account balances for plant for the previous two years as of the lien date used by the Montana Department of Revenue for tax purposes.