Northwestern rate case delayed
Colstrip phaseout could save $1 billion
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Dates and information for NorthWestern Energy’s rate case public hearings but the Public Service Commission (PSC) has delayed public notices on opportunities for public hearings or comments following breaking news of a settlement with the Montana Consumer Advocate. Enviro groups will look into this settlement but are wondering if the PSC will make room for new analysis that phasing out Colstrip could save consumers over $1 billion.
All of this comes as the Trump administration finalizes clean air act exemptions for nearly 70 coal units nationwide, including Colstrip, giving utilities a free pass to continue spewing deadly pollutants into the air.
Why this matters:
It’s Earth Month and as Republicans celebrate the “liberation” of American energy (defying all evidence), concerns over affordability and protecting the environment are intersecting in Montana.
The question before the Montana PSC is to what extent is investing in expensive fuels actually necessary to benefit customers, if at all? Will they side with experts and advocacy groups calling for cheaper energy sources or will they continue a habit of rubber-stamping NorthWestern Energy’s plans that bolster shareholder returns? Analysis by MEICshows NorthWestern’s plans put consumers at immense risk for being locked into expensive fossil fuel investments -- pointing to a 26% underlying rate increase not being discussed.
For years, NorthWestern has said reliability is a major factor for keeping Colstrip open despite their own admittance that it’s often shut down. It’s needed to “keep the lights on” but simultaneously they say the electricity could actually go to data centers instead. Meanwhile, Montana is quickly falling behind the region in renewable energy adoption while electric rates rise. Energy becomes a matter of politics instead of actual public good, and examples like disasters in Texas should be a reason for concern.
In other states, coal plants are heading to retirement due to their enormous costs. Colstrip is the most costly source of energy in Montana and has been plagued by reliability issues. Experts point to the inevitable economic death of coal despite Trump’s declarations, but the Montana legislature passed many bills promoting the fossil fuel industry and cutting regulations while federal representatives celebrate “beautiful, clean coal” orders.
