PSC asks if NorthWestern is acting against Montana law

Keila Szpaller

(Daily Montanan) The Montana Public Service Commission voted unanimously this week to ask NorthWestern Energy to address allegations that the company selected advisory committee members in violation of state law and held meetings closed to the public — possibly illegally.

A NorthWestern Energy spokesman said Wednesday that an official who could comment on the matter would likely not be available until Monday.

The Public Utilities Commission requested the information after three renewable energy groups raised concerns about the creation of the Electric Technology Advisory Committee and how it operates.

NorthWestern Energy’s website containing a link to information about the committee displays a “page not found” error message.

Under state law, which the Public Service Commission cited in its letter, the commission is tasked with making recommendations to the utility regarding its electricity system.

Last week, Nick Fitzmaurice of the Montana Environmental Information Center told the Public Service Commission that the commission is “outlier” among other utilities in the region when it comes to closing meetings and may even be violating state public meeting law.

Fitzmaurice also said NorthWestern Energy has established an advisory committee to guide resource planning, but that the committee does not have the “broad reach” required by law.

He said NorthWestern wants to eliminate the commission from the statute altogether, but the Montana Legislature has not made any changes, so the utility still has to comply with the rules “as they currently apply.”

NorthWestern Energy is a monopoly in Montana. It has been criticized for relying too much on fossil fuels and failing to keep up with the economic benefits of renewable energy sources.

“NorthWestern has historically convened a larger group of impartial, independent representatives from a variety of stakeholders, but groups that have served on this committee for years, even decades, are explicitly excluded from the committee,” Fitzmaurice, an energy transition engineer, said in prepared remarks.

“There is a shortage of large and small energy developers, advocates for low- and fixed-income customers, independent economists, Montana nonprofits and qualified members of the public.

“Retailers, the only customer group at NorthWestern that is seeing significant growth and arguably NorthWestern’s largest shareholder, are neglecting representation.”

The Public Service Commission regulates Montana’s monopoly utilities. Last fall, the PSC approved a settlement proposed by NorthWestern that increased residential customers’ electricity bills by 28% compared to the summer of 2022.

MEIC is a nonprofit environmental organization focused on energy; the letter from PSC to NorthWestern said the Montana Renewable Energy Association and Renewable Northwest have expressed similar concerns in subsequent comments.

Instead of a “broad-based” group, NorthWestern chose government employees, a national environmental nonprofit, and a member of the University of Montana’s Bureau of Business and Economic Research, which the MEIC said constituted a financial conflict of interest, given that the research group receives funding from a utility company.

This week, commissioners who were at the meeting Tuesday voted without opposition to sign a letter urging NorthWestern to address issues raised by three environmental groups.

“I fully support the signing of this letter. How long has this procedure not been followed?” asked Commissioner Randy Pinocci.

PSC Executive Director David Sanders said Pinocci’s question was part of the reason for writing the letter, and commissioners also wanted to understand the utility company’s procedures and reasoning.

“We’re trying to figure that out,” Sanders said.

The PSC letter responded to comments from Fitzmaurice and the other two groups, asking for responses to questions by August 9.

“Specifically, the Commission requests that NorthWestern explain how its membership in ETAC meets the requirements (of Montana code MCA 69-3-1208) for a ‘broad-based’ committee,” the PSC letter stated. “The explanation should include a description of the ETAC membership and the decision-making process and criteria NorthWestern used to determine membership.”

The PSC also asked for details about committee meetings.

Fitzmaurice noted that Montana utility administrative rules require that commission meetings be open “whenever practical,” and that the utility will contact the commission before the meeting closes.

“The public was not informed in any way about the activities of ETAC and there was no opportunity to establish the committee before meetings were closed to the public,” Fitzmaurice said in his speech last week.

In its letter, the Public Service Commission asked NorthWestern to provide the number of committee meetings it held to develop the next “integrated resource plan,” how many were open or closed, “in whole or in part, to the public,” and the process by which the decision was made to open or close them.

“This is clearly a matter of public interest and the Commission appreciates your assistance in better helping the public understand the process,” the PSC said in a letter to NorthWestern Energy.