Press Release: Scrutiny Intensifies on NorthWestern Energy’s Rate Increase Amid Climate Concerns
Colstrip, MT – NorthWestern Energy has come under fire during a recent Montana Public Service Commission (PSC) hearing over a proposed $40 million rate hike attributed to a coal plant outage amid a cold snap in January 2024. Legal representatives for various advocacy groups, including environmental organizations, questioned the utility’s planning and cost management strategies. Attorney Jenny Harbine emphasized the need for transparency in understanding NorthWestern’s reliance on coal and its implications for customers.
The utility’s Vice President, John Hines, faced inquiries about the higher operational costs resulting from the Colstrip plant’s failure. Hines acknowledged that the outage led to increased market purchases, exacerbating customer costs, yet defended the plant as essential for energy reliability. He stated that all energy sources, including renewables, have their challenges, underlining the need for a diversified energy portfolio.
Harbine challenged Hines on NorthWestern’s lack of climate risk assessments regarding hydroelectric power generation, as climate change could impact future river flows. Hines expressed skepticism about the accuracy of climate models and maintained that the utility evaluates current conditions rather than future projections.
The PSC hearings will continue, with advocacy groups urging rejection of the rate increase due to its potential risks to consumers.
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