Climate Impacts: Montana PSC Urged to Consider

Article Summary –

Forty-one climate organizations, conservation nonprofits, and businesses have petitioned Montana’s utility board to consider the impacts of climate change in its regulation of monopoly power companies. The petitioners suggest that the Public Service Commission should adopt a framework to estimate the “social cost” of greenhouse gas emissions similar to one developed by the U.S. Environmental Protection Agency. The petitioners argue that with such a framework in place on state level, the Public Service Commission could factor in the social, economic and environmental costs associated with different power sources when deciding which generating resources can be included in customer bills.


Montana Utility Board Petitioned by Various Organizations to Consider Climate Impact

Forty-one conservation nonprofits, climate organizations, and businesses have urged Montana’s utility board to incorporate climate impacts in its regulation of power companies with monopoly standing. The petition was filed on Feb. 28, arguing that the Public Service Commission (PSC) has an obligation to account for climate impacts.

The petitioners cited the August ruling of District Court Judge Kathy Seeley of Lewis and Clark County, which favored 16 young Montanans in the Held v. Montana lawsuit. The court ruled that the state contravened environmental protections included in the Montana Constitution by ignoring greenhouse gas emissions’ impacts in its permitting decisions.

The petitioning groups want the PSC, a five-person elected body regulating public utilities, to adopt a framework similar to the one by the U.S. Environmental Protection Agency for estimating the “social cost” of greenhouse gas emissions. They argue that having such a framework lets the PSC weigh the social, economic, and environmental costs associated with different power sources when deciding which resources can be incorporated into customer bills.

According to Nick Fitzmaurice from the Montana Environmental Information Center, the idea is that this estimation of pollution damage would be used for existing generating assets, such as the Colstrip generating plant, and could also be applied to proposed power plants.

Responding to the petition, a spokesperson for PSC-regulated utility NorthWestern Energy, which co-owns the Colstrip coal power plant, said that the utility is “reviewing the petition and looks forward to a thorough discussion on the topic.”

The petition, submitted under the Montana Administrative Procedure Act, establishes a process for the public to urge state agencies to adopt new rules to govern their operation. The 42-page petition includes material on climate impacts, PSC’s statutory duties, and the implications of the Held v. Montana order.

Earthjustice attorney Jenny Harbine is optimistic that the commission will hold a hearing on the matter and hinted that the petitioners might take the matter to court if they find the commission unresponsive.

Among the petitioners are climate and environment-focused groups such as Families for a Livable Climate, Montana Environmental Information Center, 350 Montana, Save Wild Trout, Western Environmental Law Center, and Montana Wildlife Federation. A few businesses, including Bridger Bowl Ski Area, Blackfoot River Brewing, and Parks’ Fly Shop, have also signed the petition, along with Lander Busse, a Held v. Montana plaintiff, and Ryan Busse’s son, a Democratic candidate for governor.


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