HELENA - While some state regulators say they're concerned whether a proposed NorthWestern Energy power line might end up costing Montana ratepayers, Public Service Commissioner Brad Molnar is more blunt about it: He wants to kill the project.
Molnar, R-Laurel, said the proposed 430-mile power line into southern Idaho is nothing more than a way to drain inexpensive, Montana-produced power out of the state and into expensive California markets.
If that happens, Montana consumers will be forced to buy a large chunk of their electricity at California prices, which would be much higher than Montanans pay now, he says.
"We will have to meet or beat California prices," he said Friday. "If 1,500 megawatts (of power) goes out through that line, we ain't got nuthin'."
Other members of the PSC, which regulates utilities, say they have similar concerns about Montanans getting in a bidding war with California or other expensive Southwest markets.
NorthWestern officials say the $1 billion power line, which wouldn't be completed until 2013 at the earliest, is intended to ship power from new, renewable-power projects - primarily wind farms.
Other power already being generated in Montana at relatively low cost should still be available for purchase in Montana, they say.
NorthWestern President Bob Rowe also says the utility, which serves 330,000 Montana customers, will continue to develop or buy power projects dedicated for customer use at rates based on the cost of the projects and not the market.
"As we bring in more and more cost-based resources into the regulated supply, that reduces the kind of risk that (Molnar) is suggesting," Rowe says.
Molnar doesn't buy that argument, and asks what projects NorthWestern is developing that could replace power currently purchased from PPL Montana, which owns more than a dozen coal-fired and hydropower plants in the state.
If PPL, which supplies about half the power for NorthWestern's customers, could move more power to California markets, it could demand a much higher price from Montanans, Molnar said.
David Hoffman, PPL Montana's spokesman, said he won't speculate on whether the new line could drive up the price that PPL can ask for its power in Montana.
"That's a hypothetical question," he said. "I can't say if it will or if it won't."
PPL Montana generally supports construction of a new power line into Idaho, Hoffman says, because it could open up new markets for the company.
Claudia Rapkoch, NorthWestern Energy's spokeswoman in Butte, said the company has arranged projects to supply about one-fourth of its electric customers' needs in Montana. The company "is looking at future opportunities," but doesn't have anything else specific lined up, she says.
Posted in Montana on Sunday, July 12, 2009 11:00 pm Updated: 11:50 am. | Tags: Brad Molnar, Northwestern Energy
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