Montana residents could soon be seeing increases in electricity bills, according to two members of the Montana Public Service Commission (PSC).
Last week, the Federal Energy Regulatory Commission (FERC) ruled that NorthWestern Colstrip, LLC could sell cheaper energy above cost to whomever it wants.
While that’s great for Northwestern Energy, some say those above cost rates may mean higher energy bills for Montana customers.
Two PSC commissioners are challenging this on behalf of Montana ratepayers.
FERC ruled that Northwestern Colstrip, LLC can sell electricity at a low price in the wholesale market.
Why do you care? Because according to the commissioners, it could mean Montana ratepayers could see higher electric bills.
Responding to this ruling, Commissioners Brad Molnar and Randy Pinocci are fighting for Montanans to pay the lowest rates.
“It's a good fight,” said Commissioner Brad Molnar, R-Laurel. “It's a worthy fight, and I'm in it. And Pinocci's with me too.”
Molnar and Pinocci filed comments with FERC last week and while they lost this round, they're still battling.
“FERC now has said that it is a rebuttable position that they have made,” Molnar said about FERC’s ruling on Northwestern. “In other words, they've made an argument, we're going to accept it, but it's rebuttable.”
Molnar and Pinocci are fighting an uphill battle, with public officials sending letters that can be found on FERC’s e-library that favor NorthWestern’s acquisition:
- Montana’s Congressional Delegation of Sen. Steve Daines, Sen. Tim Sheehy, Rep. Ryan Zinke, and Rep. Troy Dowing
- Gov. Greg Gianforte
- Attorney General Austin Knudsen
- State Auditor Jim Brown
“Politicians are trying to say that this plant is necessary for reliability, but in fact nothing could be further than the truth,” said Ann Hedges, Montana Environmental Information Center executive director.
Hedges says that everyday customers could end up subsidizing Northwestern Colstrip's wholesale power sales.
“More to be determined,” Hedges said.“Data centers are a huge part of this picture, and we don't want to be acquiring so much power just in the name of data centers if data centers aren't going to be paying their fair share.”
Hedges and Molnar agree the PSC must step up to protect customers.
“We do want the Public Service Commission to take this very seriously,” Hedges said. “We haven't seen the Public Service Commission be very good at standing up to Northwestern Energy and doing its job and protecting existing customers.”
NorthWestern offered a statement.
“Northwestern Energy's priority is to provide reliable, affordable energy for Montana families and businesses,” said Jo Dee Black, NorthWestern's public relations specialist. “Our expanded Colstrip power plant ownership safeguards Montana's energy future, supports economic growth, and ensures customer protection.”
The other three commissioners did not support Molnar and Pinnoci’s FERC filing and the commission executive director sent a statement from the board president.
“The Commission, by majority, has already addressed this matter through an order issued in December, when an investigatory docket was opened to this very matter,” said President and Commissioner Jeff Welborn, R-Dillon. “That process is ongoing. The Commission remains committed to fulfilling what Montanans expect of us, upholding the law, ensuring that energy regulation is conducted in a fair and balanced manner, and doing so independently and transparently from right here at home, while remaining within our statutory responsibilities.”
And now, Molnar and Pinocci prepare their response to FERC.
