MONTANA ENVIRONMENTAL INFORMATION CENTER
NorthWestern Energy: Again Trying to Shove Coal Down Our Throats by Anne Hedges
F
ree market pr inciples be d am ned. NorthWestern Energy and the Montana legislature are more concerned about overturning private contracts, interfering in private business decisions, making companies stay in business even if they lose money, and inhibiting future investments in Montana – all to force the continued use of fossil fuels. It seems that free market principles are just a talking point for most Republican legislators. Continued reliance on expensive fossil fuels seems to m a t t e r mo r e than keeping utility bills low for average Montanans. And as for climate change, “them’s fightin’ words.” Even with stiff compet it ion, perhaps the most troubling bill is SB 84 (Sen. Duane Ankney, R-Colstrip), supported by NorthWestern Energy. It would increase legislative interference with the independent and constitutionally-created Montana Consumer Counsel (MCC). The MCC protects consumers, such as NorthWestern Energy’s customers, before the Montana Public Service Commission (PSC) in order to ensure that utility customers are not overcharged. MCC is
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often the only entity looking out for consumers when utilities request a rate increase from the PSC. SB 84 would allow legislators overseeing the MCC to have financial conflicts of interest and would make it more difficult for MCC to hire the necessary experts to defend consumers against rate increase requests by NorthWestern and other monopoly utilities. NorthWestern supports four other bills that are intended to overturn the 1982 private contract between the Colstrip owners (see below for descriptions of SB 265, SB 266, SB 176, and SB 88). NorthWestern knew the terms of the Colstrip ownership contract when it bought a small share of the plant in 2007. Now, NorthWestern is asking the legislature to overturn the 40-yearold agreement to benefit its shareholders at the expense of its customers and the owners of 70% of the plant. Unfortunately, at least so far, the legislature is going along with these shenanigans. SB 266 ( R e p. S t e ve Fitz pat r ick, R-Great Falls) wou ld force the Colst r ip plant owners to pay for expensive and quest ion able repairs or face p en a lt ie s of $100,000 per day. The bill would require the other owners to pay for whatever repairs NorthWestern thinks are necessary even if the other owners will not be reimbursed by their customers through their allowed rates. SB 265 (also Rep. Fitzpatrick) would overturn the provision in the original ownership contract which rquires disputes among the owners to go to arbitration in Spokane, Washington, the state in which owners
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