Senate Bill 379 is a bill drafted almost entirely by NWE, as its, “…glide path out of Colstrip.” That glide path would be made possible by dumping the undepreciated costs of NWE’s 25% ownership interest in Unit 4, and its share of remediation costs (read as pollution of ground water), upon the ratepayers and not its stockholders. In addition, the Public Service Commission would be required to allow NWE to recover the same costs if it were to buy out the other 75% owners of Unit 4 and 100 % of unit 3. Cutting to the chase: It is a glide path to financial nirvana for NWE’s stockholders and officers and a crashing landing recipe for its electric customers.
Even the five conservative members of the PSC have recognized this bill for the rip off it would represent as law for NWE customers. The PSC staff ’s analysis acknowledges that shutdown of Colstrip Unit 4 in 2027 would permit NWE to recover $267 million in un-depreciated and remediation costs from its customers, which means $721 per customer. To that figure can be added a minimum of $700 per year, for each customer if NWE acquired additional ownership in Units 3 & 4 as the other Washington and Oregon utility owners are forced by their state laws to end their ownership in coal burning Colstrip. This law frees NWE from risk, insures a monetary bonanza for NWE and leaves customers holding the bag.
Colstrip produces expensive energy which NWE relishes because it receives a return at 9%+ above costs. NWE’s attempt to push through SB 379 demonstrates that it wants to maintain and add
to this polluting and costly monstrosity while shifting future costs and risks to its customers.
Jerome S. Kalur
Bozeman
Bozeman Daily Chronicle Letter to the Editor 4/8/21