BillingsGazette

BillingsGazette

Published on Sunday, April 12, 2009. Last modified on 4/12/2009 at 12:28 am

Co-op members eye money trail, petition

By LINDA HALSTEAD-ACHARYA Of The Gazette Staff

JOLIET - Where did the money come from and where has it gone?

Larry Luloff, a Beartooth Electric Co-op member, raised those questions during a citizen-organized meeting in Joliet on Saturday. The gathering was held to address concerns related to Beartooth's recent rate increases, its governance and the direction it will take for its electricity needs.

According to Luloff, reports estimate that as much as $41 million has been spent in developing the Highwood Generation Station in Great Falls. Yet, he can only account for $16 million coming from the member co-ops.

"Where did the other $25 million come from that we spent?" he asked.

Because financial records have been withheld from co-op members, it is impossible to track the spending, he said. Southern Montana Electric Generation and Transmission, the cooperative of cooperatives that has been promoting the Highwood project, says the records are confidential.

Although invited, no representatives from SME or Beartooth were on hand to answer questions.

While co-op members could only speculate about the financial picture, at least one offered a suggestion for action. Deb Thomas of Clark, Wyo., introduced a petition calling for a special meeting of the cooperative. The purpose, she explained, would be to consider amending the by-laws to require more member involvement for decisions related to electricity generation.

"If it is changed, this would make the board do independent studies before there's any generation of power," she said. "This is just asking them to stop now before they put us in any more debt."

Brad Molnar, a member of the Montana Public Service Commission, was invited to offer his perspective. Although the PSC has no jurisdiction over the co-op, he commented on SME's proposed gas-fired plant. The plant is still being considered, even though the member co-ops have contracted for 10 years of power from PPL.

Molnar said he had recently been involved in an extensive review process for NorthWestern Energy's proposed Mill Creek gas-fired plant in Western Montana.

"It took NorthWestern Energy two years," he said. "They (SME) should take a longer view."

Scott Boggio, another Beartooth customer, said he'd spoken with more than one Beartooth board member who might be open to the idea of selling the co-op's interest in Highwood.

"I think with some encouragement from the membership to the board members, they may consider doing that," he said.

But it was Realtor Kelly Resley, of Town and Country Properties, who added a new twist to Beartooth members' woes. Properties now serviced by Beartooth Electric Co-op are not selling, she said. Customers are asking pointed questions about power rates, and even if they weren't, she considers the rate increase a disclosure issue.

"The word's out," she said. "They want to see the electric bills. That's their big question."