Article published May 6, 2008

PSC delays decision on lawsuit

HELENA (AP) — The Public Service Commission will continue to evaluate the possibility of suing Northwestern Energy over its plans to sell a coal-fired electric generation plant.

PSC chairman Greg Jergeson told commissioners Tuesday that he wants them to think more about the lawsuit. He expects a decision on the matter next week.

Jergeson says he thinks NorthWestern Energy should consider putting the coal-fired plant in the rate base for use by Montana consumers. 

NorthWestern argues the coal power is too risky because a proposed carbon tax could make it too expensive for consumers. 

The PSC was told that it could seek an injunction to stop any sale of NorthWestern’s interest in Colstrip 4. Or it could argue that the transaction violates a post-bankruptcy settlement with the PSC.