Article published Apr 21, 2008

Look forward to fill state, nation's energy needs

By BOB RANEY

The Tribune published a column by former Great Falls Mayor Randy Gray April 7 commenting on the future of energy and its effects on Great Falls. Randy ignores some history and Great Falls political mistakes and assumes that a think tank's projected growth in energy demand will become reality. Please allow me to offer another view.

The "de-regulation" law of 1997 merely split the former Montana Power Co. in half. One half is now primarily owned by Pennsylvania Power and Light and consists of the former generation assets of MPC — the dams and coal plants. Along with PPL are several gas companies such as ENCANA that bought the gas fields. These are notregulated by the Montana PSC and these are the folks that are gouging the customers of NorthWestern Energy.

The other half is owned by NWE and consists of the former transmission and distribution system — the wires, poles, pipes and substations — and is regulated by the PSC. The PSC assures NWE does not do the gouging.

The result of deregulation is that the actual electricity and gas NWE customers consume is no longer regulated — it is purchased on the "market." This ridiculous law, supported by many Great Falls legislators, has nearly doubled the cost of electricity to NWE customers. It was supported by four of five of the co-ops that want to build Highwood, as well as Tim Gregori.

Then Great Falls leaders decided the city should enter the competitive electricity market and beat the odds. They lost — they made their deal with NorthWestern Corp., which is not the regulated utility, and now complain about the regulated utility because of their mistake.

In the last Legislature, the city of Great Falls and its legislators opposed returning NWE to a fully integrated, regulated utility — a move designed to return some stability to electricity supply for NWE customers and supported by the PSC and the governor. These Great Falls leaders opposed the law so that Electric City Power and SME could continue with building Highwood.

The promoters of coal and of Highwood continually toss out numbers and make predictions about projected demand for energy that on their face are silly. Projected electricity demand is already dropping in the NWE control area as ratepayers respond to ever increasing prices through conservation. The EPA says general projections on growth in demand are overstated and that conservation is occurring across the nation. As costs continue to rise, citizens will use less energy and use it smarter.

Promoters of Highwood like to banter that their coal technology (CFB) meets all currentpollution standards and is therefore not a technological dinosaur. Maybe. One thing that is true is CFB will not meet new carbon control standards and therefore is a technological dinosaur in our new carbon-constrained world. In contrast, new Montana law requires NWE to capture carbon or it cannot build a coal plant.

Promoters of Highwood continue to talk about capturing CO2 with new technology, if it is affordable or if Uncle Sam will pay for it. That is wishful thinking. The government will not fund it and the technology will drive up the cost of Highwood energy by 50 percent or more. So, take Highwood promoter projections and double them and you will be closer than the promoters. Any reference to "cheap power" from Highwood is downright deceitful. It will cost significantly more than any power now consumed in Montana.

The future can be viewed as dismal, full of coal and oil and pollution and all the associated costs (Highwood cost has doubled in 4 years). Or, it can be seen as filled with opportunity to clean up our planet, to employ new technology, to create new jobs in new industries and shed the polluted, war-filled future proposed by the continued use of fossil fuels.

What policies and technologies await us?

Energy conservation:Simply put, it means using less. Look around you and see all the waste from needless yard lights and street lights to senseless lighted outdoor advertising. Look around your own home at all the energy wasted on appliances and lights for no reason other than not turning them off when done with them.

Energy efficiency:Simply put, it means using energy in a smarter, more economic way. An aggressive energy efficiency program could eliminate the need for SME's projections showing a dramatic increase in demand. Energy efficiency programs have been effective all over the county and are currently being employed by Montana's regulated utilities. It is up to ECP and SME to introduce efficiency to their customers

Renewables: Wind, solar and geothermal production are only in their infancy. Smart money is pouring into development and deployment of alternative energy resources. Large commercial solar electricity production facilities are under contract right now. Firming facilities to ensure the growth of wind power are soon to come on line in Montana. Montana has immense geothermal opportunity that is just now being explored for commercial production. Perhaps it is time for ECP and SME to think outside of the coal box.

Energy storage facilities such as compressed air, pumped hydro, dynamos, batteries and more are presently being developed and deployed. These technologies make wind and solar even more available to replace carbon fuels.

All of these new ways of making and consuming energy are being developed and deployed around the world. It takes electricians, technicians, developers, engineers and an educational system to support it — all of which present great opportunity for Montana and Great Falls.

Or, we can look to the past and make it our future. Personally, I think SME and Great Falls need an exit strategy from their fossil fuel, white elephant dreamscape.

I have far more confidence in American ingenuity, education, skills and determination than to think we have to continue to foul our nest to meet energy needs.