Article published May 16, 2007

Schweitzer signs 're-reg' bill

By ERIN MADISON

Tribune Staff Writer

HELENA — Gov. Brian Schweitzer signed into law Monday the bill that aims to partially re-regulate Montana's energy industry.

The bill locks in NorthWestern Energy's customer base starting Oct. 1, which could impact the proposed coal-fired Highwood Generating Station near Great Falls and the city's ability to sell the energy the power plant produces.

Under the new law, Electric City Power, the city of Great Falls' electric utility arm, has until Oct. 1 to sign up new customers. After the deadline, it can continue to recruit customers who use at least five megawatts of power. Great Falls City Manager John Lawton says he doesn't have concerns about Electric City Power securing a customer base to support the $720 million Highwood Generating Station, which would produce about 250 megawatts of power starting as early as 2011. The city is entitled to about 37 megawatts of Highwood-produced power.

"It doesn't mean anything for Highwood," Lawton said.

However, it will narrow the kind of customers the plant could serve, he said. Electric City Power's current customer base consumes about 25 megawatts of energy.

The power company is already working to secure more customers before October, Lawton said.

The Legislature voted to deregulate the energy industry 10 years ago — a decision that several lawmakers have since called a disaster for consumers.

Schweitzer explained in a press release that the new law won't fix problems caused by deregulation, but it might help prevent things from getting worse.

"It has the potential to give Montanans a small measure of protection from an out-of-state corporation that places its profits above the economic health of this state and its people," the governor's said in the release.

The bill was extremely controversial during the regular session when it was passed by both the House and the Senate.

All but one of Cascade County's delegates, Sen. John Cobb, R-Augusta, who's district includes a portion of the county, voted against the bill.

The bill will allow future "experiments like Highwood" to continue, Schweitzer noted.