In Montana, nonprofits are urging stricter oversight of NorthWestern Energy by the state’s utility board. Their concern is that residential customers might end up paying for the utility’s plan to power data centers. Nine organizations focused on energy, conservation, and social justice have filed a petition with the Public Service Commission (PSC). They want to ensure the utility’s over 413,000 residential customers aren’t burdened by the costs of new power plants and transmission lines.
The central issue is NorthWestern Energy’s agreements to supply power to three data centers. The utility’s forecast suggests that by 2030, these centers will require 1,400 megawatts of electricity. This amount is equivalent to the power needs of over a million homes and doubles what current customers consume daily. The data centers in question include Atlas Power, which seeks 150 megawatts by 2030; Sabey Data Center Properties, aiming for 250 megawatts; and Quantica Infrastructure, which plans to increase its usage to 1,100 megawatts by 2030.
Some data center projects are still in the planning phases, with uncertainties about land deals and proposals. NorthWestern currently has contracts for 2,100 megawatts and plans to acquire additional power from the Colstrip coal plant. However, much of this new electricity is already allocated.
The petitioners argue that NorthWestern’s pre-regulatory approval agreements are “unreasonable” and breach Montana law. They claim the company is blocking public oversight by making their plans less transparent. They request the PSC to prevent cost shifts to existing customers who cannot choose alternate power suppliers. The nine groups involved include Big Sky 55+, Climate Smart Missoula, and the Montana Environmental Information Center.
The petitioners propose that the PSC create a unique customer class and tariff for data centers, ensuring these centers notify NorthWestern of power usage changes in advance. This strategy should provide predictability and protect current customers. If successful, the petition will allow the groups to question NorthWestern in a public hearing about its plans and their potential impacts.
Montana law requires large new customers to prove they won’t negatively affect other utility customers before buying more than 5 megawatts from a public utility. The law also gives the PSC authority to oversee public utility operations, ensuring transparency and regulatory compliance.
NorthWestern Energy’s spokesperson, Jo Dee Black, stated the company plans to establish a tariff for large-load customers. Contracts for new data center clients will be filed with the PSC as executed. Black emphasized that these commercial customers will bear the costs of integrating into Montana’s energy system.
If the PSC accepts the petitioners’ request, a case will be developed for review. The PSC could make a decision with or without a hearing.
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