Montana PSC approves Greycliff Wind Farm project
The Montana Public Service Commission (PSC) approved the contract terms for Greycliff Wind Farm Development project on Tuesday, requiring NorthWestern Energy to contract renewable energy from the facility at $45.49 per megawatt-hour for 25 years.
Greycliff Wind Prime, LLC, and NorthWestern Energy began contract negotiations in July 2015, but were unable to reach an agreement due to price. Greycliff proposed compensation at $53.39 per megawatt-hour, while NorthWestern proposed $35.65 per megawatt-hour.
The PSC was required to mediate the issue, voting 4-1 to allow Greycliff Wind Prime to continue development of its wind farm, with compensation of $45.49 per megawatt-hour, despite controversy that the price is too high and unfair to ratepayers. Under the federal Public Utilities Regulatory Policies Act (PURPA), NorthWestern and other utilities will be required to purchase power from the facility.
“I am not at all satisfied with the high price that was approved, but the law requires the commission to mediate the negotiations of this contract, and resolve any disputes between the parties,” PSC Commissioner Bob Lake (R-Hamilton) said. “Federal law limited the amount of discretion the commission could use in setting the price consumers pay for this wind power, and we had very little authority to include additional benefits for customers that we felt were necessary.”
The approval was controversial, and PSC Commissioner Kirk Bushman (R-Billings) said that Montana ratepayers will bear the financial burden for years to come.
The project will continue as a qualifying facility under the PURPA Act for up to 25 years. NorthWestern Energy will have the right to curtail purchasing for safety purposes only. The utility asked for permission to do so for economic reasons, given the high price per megawatt-hour, but the request was denied.
