Montana court rejects lower compensation rates for small wind and solar generators
Montana District Court Judge Mike Menahan affirmed a 2015 Public Service Commission (PSC) order on Monday denying NorthWestern Energy’s request to decrease the amount paid to small wind and solar projects for electricity.
The affirmation stems from a May ruling that the PSC may maintain existing standard rates for certain wind and solar projects no larger than three megawatts in size. Under the Public Utility Regulatory Policy Act of 1978, companies like NorthWestern Energy must purchase power from qualifying facilities based on the avoided cost to the utility.
The PSC found that NorthWestern Energy had failed to provide adequate information to support its application to decrease the rates paid to small wind and solar projects in May. Menahan said that PSC acted in a reasonable manner and that NorthWestern Energy “calculated proposed rates using a flawed methodology.”
“I am very pleased with the court’s decision as it recognizes that the PSC’s order was
based on our unique knowledge and expertise of the subject at hand, as well as a
thorough and fair analysis of NorthWestern’s proposal,” Menahan said.
