NorthWestern Energy supports Montana Energy Security Act
NorthWestern Energy recently announced its support of the Montana Energy Security Act of 2019, which includes language to define greater details of a potential purchase of an additional share of Colstrip Unit 4.
Montana State Sen. Tom Richmond (R-MT) introduced the measure allowing NorthWestern Energy, which services Nebraska and South Dakota in addition to Montana, to buy up to 150 megawatts of Colstrip Unit 4 for $1.
Under the bill provisions NorthWestern Energy would recover capital investments associated with the 150 megawatt share of Colstrip Unit 4, up to $40 million, for five years, through electric utility rates paid by customers while requiring liability tied to the 150 megawatt share for the future decommissioning of Colstrip Unit 4 and site remediation has to remain with the current owner.
“Planned retirements in the near future of coal and other energy plants in the West mean continued reliance on purchasing electricity from the market to meet high energy demand puts our Montana customers at risk,” John Hines, NorthWestern Energy vice president Energy Supply and Montana Government Affairs, said. “That risk includes high market prices and frankly, not enough energy on the market to meet needs. The very high price for electricity from the market for the entire month of February should be a clear warning about the risk our customers are facing.”
Hines said more owned energy generation is needed in the utility’s portfolio to serve Montana customers.
