By Tyler Halligan, Climate and Energy Organizing Fellow
Note: A shorter version of this blog post was recently published as an Op-Ed in the Missoulian and Bozeman Daily Chronicle.
Listen, I think about NorthWestern Energy, our state’s primary utility provider far too often. Maybe it’s because I’m a diehard environmentalist (yeah yeah say what you wanna say, I care a lot about the planet and everything on it, sue me). Maybe it’s because I just want to live in a society and system that functions to benefit people, not profit. Either way, I’m thinking about NorthWestern Energy multiple times a day it seems.
You may look at this and laugh, wondering why someone thinks about a utility company so much… and I’ll tell you why. To start, I’m part of the generation who was born in the mid 90’s, who, along with Gen Z, Gen Alpha, and future generations, are expected to face the brunt of climate change. Because of this, I’ve tailored a lot of my life, education, and career up to this point looking at how we can fix outdated systems and institutions in order to benefit people and the planet.
We are at a critical junction, both globally and here in Montana, where we’re confronting the realities on the ground of climate change and how it’s reshaping the global landscape. This is our generation's defining issue, and how we move forward will shape the trajectory of future generations to come. This is why I think about NorthWestern Energy so much. I’m frustrated with the ways that they are operating and the direction that they are taking us down.
Some people say that climate change isn’t real, and that we need fossil fuels for reliability and stability in the energy market while we transition to clean energy, but even that line of thinking doesn’t explain NorthWestern’s decision to primarily focus on the expansion of fossil fuel infrastructure. Despite the rest of the world transitioning away from fossil fuels and towards clean energy sources, NorthWestern has decided to focus on and prioritize increasingly outdated and dirty energy projects, which can easily be termed “last-century’s energy system.” The newly constructed 175 MW gas plant in Laurel and NorthWestern’s increased ownership of the Costrip coal-fired plants after the previous shareholders left due to these systems being outdated, overpriced, and environmentally and physically unsustainable are perfect examples of NorthWestern moving backwards, not forwards. The CEO of NorthWestern Energy, Brian Bird, has blatantly acknowledged this too, previously stating that “he may be the only CEO in the utility industry actively focusing on coal in his portfolio.”
By clinging to outdated fossil fuel infrastructure, NorthWestern is not only hindering progress towards a cleaner and more sustainable future, but also impeding our state from benefiting fully from the growing clean energy sector. This reluctance to transition not only jeopardizes our environment and public health but also puts us at a disadvantage in the global shift towards renewable and innovative technologies, potentially diminishing our state's competitiveness and long-term resilience all while leaving us extremely vulnerable to market shocks. On top of all this, fossil fuel infrastructure is increasingly subjected to rising rates and increased regulation, both at the federal and state level due to their adverse impacts. Because of this, neighboring states have passed legislation preventing their utility companies from utilizing energy from fossil fuel sources, which has left Montana isolated in the energy market and turned us into an island of coal and natural gas, raising serious concerns about our capacity to adapt to the evolving global energy landscape. Our energy future should not be beholden to a singular approach, especially one that ties the state to outdated and environmentally harmful practices.
This disregard for Montana and our communities is also reflected in the recent rate increase of 28% (almost $400 more a year) that was requested by NorthWestern and approved unanimously by our five-member Republican Public Service Commission (PSC). This increase will be used to pay for continued fossil fuel use, which is incredibly frustrating because fossil fuels are no longer cheaper than renewables to operate. Coal fired power plants for example, cost ⅓ more to operate than renewable systems do. We as captive ratepayers are shouldering this cost. We should be more frustrated that our hard-earned money is going to systems that are outdated, more expensive, environmentally disastrous, and physically harmful to our communities.
It’s hard to wrap my head around how NorthWestern practically operates free of oversight in Montana. But digging a little deeper it starts to make more sense. Our Public Service Commission, or PSC for short, is the agency tasked with monitoring the utility companies in the state. Their mission is to ensure that ratepayers have continued access to utility services that are affordable, reliable, and sustainable for the long-term. If they were to abide by this mission, there would be much more pushback against NorthWestern and their rate increases, increased fossil fuel infrastructure, hedging, and more.
In a world that is rapidly transitioning away from fossil fuels, our PSC stands beside NorthWestern– prepared to go down with the ship. This can be seen in their inability to take advantage of relevant legislation for the benefit of Montana and our communities as well. The passage of the IRA and IIJA provided significant funding and co-funding opportunities for investments and operational technologies through a mix of grants, loans, and tax benefits for utility companies. Because of this significant funding, PSCs in states across the nation (Minnesota, Michigan, Nevada, Missouri, North Dakota, North Carolina, the District of Columbia, Maryland, South Carolina, and more) have gone through processes to assess how to leverage these funding mechanisms for the benefit of their ratepayers. Our PSC, on the other hand, has so far sat idle.
This lack of initiative stands in stark contrast to the proactive approaches taken elsewhere. The failure to explore the potential advantages of these legislative acts for Montana's energy landscape is not only a missed opportunity but feels like a blatant disregard for their job.
In sum, I’m frustrated. I’m frustrated that we have a utility company in Montana that is actively focusing on and planning to continue focusing on fossil fuels. I’m frustrated that their CEO, who makes 40x the amount an annual hardworking Montanan makes a year, is telling us that this focus on fossil fuels is against what other utility companies are even doing but still is prioritizing them. I’m frustrated that our Public Service Commission is sleeping on the job, unable to stand up against NorthWestern or think about the global context of the decisions being made here. I’m frustrated that our ratepayers are a second thought to profits. I’m frustrated that our elected officials care more about propping up and supporting these institutions instead of prioritizing what’s best for our state. I’m frustrated that they don’t recognize opportunities for innovation and creativity. I’m frustrated that they actively disengage with truth and science. I’m frustrated that they don’t care about being good stewards for generations to come. I’m just frustrated.
I’m also hopeful. I’m hopeful about our future because I know the work that people are putting in to change what has been into what could be. I’m hopeful because I see the energy landscape changing despite what NorthWestern and the PSC decide for our state. I’m hopeful that we as a collective can recognize the importance of overcoming the institutional barriers in our way. And most of all, I’m hopeful because of the many great individuals and organizations here in Montana who are working towards this change.
Right now, a diverse group of over 40 Montana organizations and businesses have submitted a petition to the Montana Public Service Commission (PSC) to request that it adopt rules requiring consideration of climate change in its regulation of Montana gas and electric utilities. This petition asks the PSC to abide by Montanans’ Constitutional right to a clean and healthful environment, which includes the right to a stable climate. With broad oversight authority over Montana utilities, the PSC makes decisions that can either promote or discourage continued utility investment in fossil-fuel infrastructure. Thus, the PSC has the most consequential role of any decision-making body in the state in determining Montana’s impact on the climate.
The momentum behind the petition urging the Montana Public Service Commission to incorporate climate change considerations in its regulations, underscores the urgent need for a shift in our approach to energy policy. Failure on the part of the PSC to consider the far-reaching impacts of climate change not only threatens to burden NorthWestern customers economically but also compromises our fundamental rights to a stable climate.
As Montanans, we deserve a utility company and a Public Service Commission that genuinely listens to our concerns and who care about the long-term health of our environment. It’s not just about securing affordable electricity; it’s about safeguarding our constitutional rights and building a sustainable legacy for generations to come. Acknowledging and acting upon the economic and environmental consequences of climate change is not just a duty—it is an opportunity to contribute to a more resilient and equitable energy system.
With these principles in mind, it's crucial that we engage in the upcoming Public Service Commission (PSC) hearing. The PSC has granted a public hearing on Monday, April 8th, starting at 9:00 am at the PSC's Bollinger Conference Room, 1701 Prospect Ave, Helena to discuss considering climate in their decision making. We encourage everyone to attend and make their voices heard. Each participant will have 2 to 3 minutes to speak. If you can't attend in person, you can join remotely via Zoom by contacting pschelp@mt.gov or calling 1–800–646–6150 by 4:30 pm on Friday, April 5th. Written comments are also accepted until April 12th. Your input is crucial in shaping decisions affecting all Montanans. Read more about packing the PSC and RSVP to attend here: https://tinyurl.com/2cds2m6c. Let's work together for a sustainable energy future in Montana. We hope to see you there!
To read the whole petition, click here: https://tinyurl.com/bdbvsvwm
To send a message to the PSC, visit: sc.org/psc
