Archived Story

'Re-regulation' nearing final approval; governor noncommittal -
Posted on April 18

By MATT GOURAS of the Associated Press

HELENA - NorthWestern Energy is on the verge of being allowed to build regulated power plants after both the House and Senate endorsed final changes on Wednesday to the so-called "re-regulation" bill.

But the governor has yet to say if he will sign the measure, which still faces one more vote in each chamber.

"I have a lot of options once a bill reaches my desk," Gov. Brian Schweitzer, a Democrat, said Wednesday.

Schweitzer said he could sign the bill, veto it, let it become law by doing nothing, or change it with an amendatory veto.

Schweitzer said he is going to let the bills that come out of the Legislature "gather dust for a little while" while he compares them and evaluates the public policy of all of them combined.

"I think I'll let the Legislature do a few more things right now, and I will be a good listener, and I will be a good watcher," he said.

A Great Falls Democrat tried unsuccessfully Wednesday to delay the "re-regulation" measure, arguing it could derail plans his community has to build its own power plant. Critics say a byproduct of the "re-regulation" bill is to lock NorthWestern customers into that company's rate base.

"Please, let's not lock something into law that we are going to preclude some of the good things we are working on," said Sen. Don Ryan, D-Great Falls. "We're not asking to kill the bill, we are asking for some time."

The Senate gave approval on a 29-21 vote to a final round of changes that clarifies new power plants wouldn't have to sequester carbon dioxide on the site of the power plant, but could ship the carbon to a different location to sequester it.

The House agreed with the change on a 71-29 vote.

Supporters say the bill is needed to let NorthWestern build plants and break the monopoly the other big piece of the former Montana Power Co. - PPL Montana - holds on energy production.

Even backers acknowledge the bill won't bring back the cheap electricity Montanans largely enjoyed prior to deregulation of 1997, but they argue it could bring stability to prices currently controlled by the open market.

Critics point out that NorthWestern, which has a buyout offer from an Australian company, has no plans to build any power plants.

Schweitzer said it is a misnomer to call the bill "re-regulation". He said its effect is far more limited than that, comparing it to just one tool needed to put a car back together.

PPL Montana has opposed the bill, arguing that it bought the power plants under the assumption it would be selling power into a deregulated market.

The bill is House Bill 25.


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