NorthWestern Energy documents sit on a table inside the Bollinger Room in Helena on May 12 during a public hearing in front of the Montana Public Service Commission.
The Montana Department of Environmental Quality and Gov. Greg Gianforte on Thursday announced they will request to intervene in a proceeding at the state Public Service Commission about what fees and costs to impose on businesses that want to use huge amounts of electricity, which right now is mainly data center companies.
Back in March, NorthWestern Energy asked the PSC to approve a "large new load tariff," which would allow the power company to place new rules and contract terms on anyone, or any company, that wants to buy 5 megawatts or more, including data centers and other energy-intensive operations. The PSC will have to decide whether to approve that tariff or make amendments.
The energy office at the DEQ is requesting to participate as a party in the PSC proceeding. If granted "intervenor" status, the DEQ would be able to provide technical input, file testimony and work with other parties to "strengthen customer protections and support timely interconnection for large new load projects," according to press release from Gianforte's office.
“Montana is open for business, and we welcome employers who want to bring high-paying jobs here,” Gianforte said. “At the same time, we’re making sure large, new power users pay their own way so Montana families aren’t left subsidizing their electric bills. By intervening in this case, DEQ will help the Commission balance growth with fairness for existing customers.”
If the tariff is approved as written, NorthWestern would be able to tell these new large-load buyers that they have to commit to buying power for a minimum service period. And a buyer who wants more than 50 megawatts would have an even longer minimum service term.
NorthWestern Energy documents sit on a table inside the Bollinger Room in Helena on May 12 during a public hearing in front of the Montana Public Service Commission.
SONNY TAPIA, Independent Record
The large users would also be required to have a minimum demand and a minimum energy billing to "ensure these customers pay for the capacity and energy needed to serve them."
“Montanans deserve a system where large, new customers can connect to the grid quickly while covering the full incremental costs of serving them,” said DEQ Director Sonja Nowakowski. “Our role in this case is to help make sure that happens by protecting legacy customers, supporting economic development, and advancing the work of the Governor’s Unleashing American-made Energy Task Force.”
NorthWestern's filing proposes termination cost provisions for qualifying large new loads, and it would require individual service agreements to be reviewed and approved by the PSC.
Data center companies have been eyeing Montana for new facilities in the past year. One company, called Quantica Infrastructure, is planning a massive data center campus north of Billings that is projected to use 1,100 megawatts of electricity, which is a huge amount of power. NorthWestern currently supplies roughly 750 megawatts to all of its customers in Montana.
Gianforte's office said Thursday that a recent report from the Western Electricity Coordinating Council says the demand for electricity across the western U.S. is projected to grow by 20% in the next 10 years. The same report projected a 9% increase in demand only three years ago.
A host of other environmental nonprofits, including Climate Smart Missoula, Earthjustice and the Montana Public Interest Research Group, have also asked to intervene in the hearing.
Earlier this year, many of the same groups challenged the PSC’s protective order for NorthWestern’s letters of intent with three data center companies. The order allowed the contents of the letters to remain sealed from public view. That case is still pending.
David Erickson is the business reporter for the Missoulian.
Keep it Clean. Please avoid obscene, vulgar, lewd,
racist or sexually-oriented language. PLEASE TURN OFF YOUR CAPS LOCK. Don't Threaten. Threats of harming another
person will not be tolerated. Be Truthful. Don't knowingly lie about anyone
or anything. Be Nice. No racism, sexism or any sort of -ism
that is degrading to another person. Be Proactive. Use the 'Report' link on
each comment to let us know of abusive posts. Share with Us. We'd love to hear eyewitness
accounts, the history behind an article.
(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.