Lawmakers should protect customers from NorthWestern Energy rate increases, Montanans say • Daily Montanan

Montanans want lawmakers to make sure Montana’s consumer advisor is looking out for NorthWestern Energy’s families and small business customers as the utility seeks another rate increase – following a 28% increase approved in a settlement last year.

The public has found that other states, such as Texas, are moving toward cheaper, renewable energy sources, but NorthWestern Energy continues to “lock” customers to outdated technologies that are both costly and harmful to human health.

“It’s really absurd,” said Joanie Kresich of Livingston. “Their shareholders’ pockets are overflowing and we are struggling to make ends meet.”

The company reported “solid earnings growth” at the end of July – $31.7 million in the quarter compared to $19.1 million in the same period in 2023 – mainly due to “new base rates in Montana and South Dakota, revenue from electric transmission, Montana property tax tracker collections, and retail electricity and natural gas sales volumes.”

The Legislative Consumer Affairs Committee, which appoints Montana’s consumer advocate, heard comments Monday about the new rate. Montana Consumer Counsel represents consumers before the Montana Public Utilities Commission, which regulates public utilities.

In the latest rate case, Montana Consumer Counsel supported the settlement with NorthWestern Energy, and citizens have called on lawmakers to ensure that a legal advisor acts on their behalf in the new case.

In the current filing, NorthWestern argues that it has invested more than $1 billion in natural gas and electric utilities in Montana through the end of 2024, including $310 million in a methane-fired plant in Laurel, and should recover those costs.

NorthWestern estimated the increase in residential electricity bills at 8.3%.

However, Nick Fitzmaurice of the Montana Environmental Information Center told committee members that these are preliminary estimates on paper and may not reflect reality.

He expressed concerns that the structure of the new proposal means NorthWestern will be able to raise interest rates even further through quarterly adjustments, and those adjustments are not subject to the same scrutiny.

“We have been excluded from NorthWestern’s planning and decision-making process, and the Public Service Commission has been largely unresponsive to our requests,” Fitzmaurice said.

Last year, the all-Republican, five-member Public Service Commission voted unanimously in favor of a settlement negotiated by NorthWestern Energy with some, but not all, parties in the case; The deal raised rates from $91.27 per month in August 2022 to an average of $116.63 for residential customers, according to evidence from the case.

This summer, however, the Public Utilities Commission found that the utility had falsified its application for higher rates and failed to provide adequate details to justify its request, and, on the advice of agency staff, directed NorthWestern to provide more information twice.

But at Monday’s hearing, citizens said NorthWestern cannot be trusted to have taxpayers’ best interests in mind. Many people also called on lawmakers to help the Public Utilities Commission see the benefits of clean, renewable energy.

Dr. Lori Byron, a pediatrician with a master’s degree in energy policy, says 89,000 children in Montana live in poverty and even more are on the poverty line.

“I’m already seeing families having to choose between food for their family and inhalers for their children,” Byron said.

She said last year’s large rate increase is already causing hardship for families and asked lawmakers that with a new rate, Montana’s consumer advocate continues to advocate for what’s best for children.

During public comment, Sen. Mary Ann Dunwell praised committee members and the Montana Consumer Advisor for their work.

Dunwell, who is not a commission member, said the work is important in part because decisions made by the PSC harm voters, although she said commissioners have good intentions.

She said Montana residents are experiencing a “triple whammy” when it comes to affordability, with rising property taxes and housing costs, high energy bills and health care bills.

“You are my voters’ only hope,” said Dunwell, a Democrat who represents Helena and East Helena.

Many citizens also said that affordable and clean options are not only available but also popular in other places.

Abby Huseth of Climate Smart Missoula said that in 2024, about 94% of added electric grid capacity will be renewable energy and storage: “This is happening today. This transition is happening today.”

But NorthWestern does not present these options to the public, said Huseth, also a client of the company.

“We don’t believe that they’re actually taking the best options on the table today and bringing them to Montanans,” Huseth said.

Karen Jarussi of Billings pointed to the $320 million plant NorthWestern Energy is building in Laurel as one example of a bad investment. She said the money would go largely towards solar power, new battery technology and free energy sources.

“We need to turn the ship around and make a radical shift towards the technology of today and tomorrow,” Jarussi said.

Karin Kirk, a geologist from Bozeman, said while some say renewables are fickle, she said she considers observing electricity transmission and generation in the region a hobby.

She said the Colstrip coal plant is volatile; it now runs at half speed, as it has during several extreme temperature swings this year. She said NorthWestern has done a great job of preventing outages, but as a result, shopping at the market is costly for customers.

Meanwhile, she added, the neighboring Dakotas rank 8th and 9th in clean energy jobs per capita, and Montana ranks 46th despite having the 7th most wind energy resources in the country. But it also ranks 49th in terms of wind energy.

She said neighboring countries were innovating and part of the modern energy economy: “I hate to see other countries doing better and think, ‘Why aren’t we doing this?'”