3 days ago
Montana Public Service Commission finally stands up to NorthWestern Energy
Electricity pylons (Photo by Getty Images).
It's fair to say Montanans have been raked over the coals for electricity costs by the utility companies that have followed in the wake of the disastrous utility deregulation bill passed by the 1997 Legislature and signed into law by then-Gov. Marc Racicot.
The faulty premise on which the measure was sold to the Legislature was that Montanans would enjoy lower electricity costs thanks to customers having 'choice' to shop among the various utilities that were supposed to materialize.
But that didn't happen.
The opponents to the measure cited the simple fact that Montana already had the lowest price for electricity in the region, thanks in large part because Montana customers had already paid the Montana Power Company, as a regulated monopoly, to build and maintain a series of hydroelectric dams. As one long-time lineman quipped 'you can't make electricity cheaper than water running downhill.'
Driven by the Montana Power Company's intent to change from a utility to a telecommunications company, Touch America, the 200+ page bill was jammed through in the last weeks of the session with most legislators having no idea what was in it — nor the consequences of their actions.
Yet the Republican legislative majorities voted to grant Montana Power's wish, bolstered by the Butte Democrats — except for brave Danny Harrington who didn't kow-tow to the utility.
It was arguably the worst decision ever made by Montana's lawmakers and governor.
First to go were the dams, which were sold to an out-of-state utility, Pennsylvania Power and Light. Next to go was the Montana Power Company itself, taking with it the pensions and stock holdings of Montanans who thought of it as 'our' power company.
Then Touch America, headed by Bob Gannon, the former CEO of the Montana Power Company, went bankrupt.
In the meantime, Montanans' electricity bills began their skyward climb as the dams were sold yet again, each time for a higher price, that was then loaded on customers. Realizing the extent of the damage caused by the deregulation debacle, the Legislature finally decided to re-regulate in 2001. NorthWestern Energy is now our 'regulated' electricity supplier since acquiring the system in 2000.
It's fair to say Montana's Public Service Commission has not been diligent in holding down rates, which have gone from the lowest to the highest in the region.
But here's the good news. Thanks to Brad Molnar, who was a commissioner from 2004-2012, was re-elected in 2024, and is now the new president of the Commission, NorthWestern has finally hit resistance to its unending requests for rate increases.
In a tremendous article, Daily Montanan's deputy editor, Keila Szpaller, lays out in detail Molnar's firm stance against the increase. Citing a 50-year old law, NorthWestern claims the Commission did not take timely action and raised rates nearly 17% on May 25 without Commission approval.
Molnar says the increase 'will be crushing to many low-income people, many of whom are simply elderly, that are being handed their butts every day in property tax increases, in utilities, insurance for their houses, insurance for their cars. You name it. This is a very, very bad time to be a poor person, and this will make it worse.'
If the rate increase is unjustified, NorthWestern will have to refund the over-charge plus 10%. As Molnar put it: 'It is time for them to grow up and quit playing the victim and actually take responsibility for their actions.'
We'll see what happens, but for now, Montanans owe a debt of gratitude to Commissioner Molnar for finally standing up to NorthWestern instead of rubber-stamping their endless rate increases.
