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Montana Public Service Commission to Investigate NorthWestern Energy Commission • Daily Montanan
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Montana Public Service Commission to Investigate NorthWestern Energy Commission • Daily Montanan

Following closed-door meetings at NorthWestern Energy and allegations that the company has not been transparent about planning for future energy needs, the Montana Public Service Commission on Tuesday decided to launch an investigation into a commission at the utility.

“Transparency seems to be a real issue for voters,” said Commissioner Randy Pinocci, who supported the investigation and said Montana should be a model for other states. “… You can imagine if the public wanted changes or meetings about the future of NorthWestern Energy and NorthWestern was told they couldn’t attend those meetings, that would be unacceptable.”

According to David Sanders of the Public Service Commission, the investigation essentially allows the PSC to collect information and materials about the company’s energy advisory committee from NorthWestern Energy and post them on the public documents portal.

“We’re going to use that tool to track exactly what’s happening in these ETAC meetings and to open up the process,” said Sanders, executive director of the agency’s Electric Technical Advisory Committee. “… The people of Montana have a right to see what’s being discussed.”

Earlier this summer, three renewable energy groups questioned whether NorthWestern Energy was legally directing its Electric Technical Advisory Committee, which makes recommendations to the utility on future resource planning.

Critics say the utility is overly reliant on energy sources that are both more expensive for consumers and more polluting, when the company could use cheaper, cleaner options.

In criticism leveled this summer, environmental groups said NorthWestern closed its meetings to the public without good reason and failed to elect members who represented broad interests, such as low-income customer advocates and small energy developers.

Nick Fitzmaurice of the Montana Environmental Information Center reported Tuesday that NorthWestern has relaunched a website with information about the commission’s work after the Public Service Commission sent the utility a letter asking it to respond to questions from MEIC and the other conservation groups.

However, Fitzmaurice, the energy transition engineer, also said NorthWestern had been both “defensive and forthright” since the Public Service Commission asked the utility to answer questions.

“It is very important to all of us in Montana that the utility, NorthWestern Energy, engages in transparent and very rigorous planning as it develops the next 20-year Integrated Resource Plan,” Fitzmaurice said.

In its response to the PSC, the utility defended the selection of committee members and said it can close meetings if necessary.

However, the Public Service Commission has the authority to investigate utility regulations, practices and services, with Sanders saying the emphasis is on openness and transparency.

A report by the agency’s staff recommended that the PSC not interfere with the selection of committee members, as the requirement for “broad-based” membership is not defined in the committee’s bylaws or rules.

However, analyst Michael Dalton also stated in his report that concerns about the lack of transparency appear to be justified. Commissioners can launch an investigation or hold informal discussions to address the concerns.

“All three ETAC meetings NorthWestern has held during this planning cycle have been closed to the public, and prior to last week, information in the meeting agendas and PowerPoint presentations related to ETAC meetings was not publicly available,” Dalton said.

According to information on NorthWestern Energy’s website, the commission’s Sept. 18 meeting will be open to the public, but for listening only.

During Tuesday’s meeting, PSC Chairman James Brown moved to launch an investigation, and Pinocci seconded the motion.

During questioning by an agency attorney at the meeting, Brown confirmed that state law requires an advisory committee, that the process for doing so is set by the Legislature, and that a special legislative committee is considering changes (Brown indicated he is a member of the special committee).

Current rules require open meetings when possible, but they also allow committee meetings to be closed when necessary, such as to discuss proprietary information. Brown said NorthWestern’s ability to close meetings is a matter for the Legislature.

However, Brown said it makes sense to proceed with the investigation because it will allow the Public Service Commission to address its transparency concerns more quickly than if it were to do so informally alone.

“I think it fully meets what we need to do as a commission, which is to ensure that regulated utilities operate in a manner, as we’ve talked about, that is transparent to the public, particularly when the utility we’re talking about has a monopoly,” Brown said.

Sanders said the agency would quickly request and publish information from NorthWestern Energy.