Northwestern Energy (NWE) and Montana Dakota Utilities – Montana’s two investor-owned energy utilities – are beholden to their shareholders and want to make a profit. While this is acceptable, there is no incentive for them to consider more affordable energy options. Why not? They are guaranteed a rate of return on their investments as well as the recovery of fuel costs. With this set-up, the more expensive the facility investment and the higher the fuel costs, the more money they make.
That is why the Montana Public Service Commission is supposed to serve as, ”Ratepayers’ first line of defense against unjust rate hikes.” The PSC’s approval of requested rate hikes – when more affordable options have not been given fair consideration – is unjust. The PSC is not doing its job!
Yes, fossil fuels built our current energy infrastructure, but we now know the impacts and are facing the consequences. Even if the all-Republican PSC believes climate change is real, I’m guessing they have to toe the Republican line that it’s a hoax. What about the pollution? These and the other excuses for not considering renewable energy are old and worn out.
Excuse #1: Renewable energy is too expensive. Today’s utility-scale wind and solar electric power plants are cheaper than fossil fuel-powered plants. Montana has world-class wind energy, but other utilities are using it more than we are! Why? It’s cheaper and helps them meet clean energy goals. Idaho Power invests in solar and wind power plants and expanded its grid so it can buy cheap wind-generated electricity from Wyoming. These strategies keep its average electric bill at $65/month versus NWE’s $113/month (based on 765 kwh use/month). Our rates will be even higher once we start paying for the Laurel natural gas plant and if NWE acquires additional shares of Colstrip.
Excuse #2: Only coal- and natural gas-powered plants provide 24/7 power. Really? Colstrip went down during our January 2024 cold snap – we still don’t know why. A natural gas generating plant shut down in Texas several years ago during an unprecedented cold snap. All energy systems need to be “weatherized” to handle extreme weather events that are occurring more often than usual due to climate change. Today’s battery storage system costs have decreased significantly and they make intermittent renewable-generated electricity reliable and available 24/7.
The PSC has other tools for keeping energy bills more affordable, which include:
- Introducing competition for Montana’s two monopoly utilities by developing fair and reasonable contract terms for outside businesses that want to build renewable energy power plants in Montana.
- Overseeing development of a long-range energy plan that proactively addresses the levelized cost of energy, as well as the external costs to our environment and health.
- Updating and expanding the grid to export, but also import cheaper electricity when needed. Montana needs to participate in Western markets or it will lose out on billions of dollars of economic opportunities.
- Directing the utilities to expand and better market efficiency programs that help Montanans reduce electricity and natural gas use.
We are at a pivotal moment where a paradigm shift is long overdue, and we need a PSC that has our backs and prepares us for the future. That’s why I’m running.
Susan Bilo is the Democratic Candidate for Public Service Commission, District 2, which includes Gallatin, Park, Carbon, Stillwater, Sweetgrass, Big Horn, Rosebud, and Yellowstone counties. Bilo has over 25 years experience in energy efficiency and renewable energy programs. She’s an instructor for Montana State University, Gallatin College.