Article Summary –
NorthWestern Energy announced it will acquire Puget Sound Energy’s share of the Colstrip power plant, enhancing its ownership to 55% by 2025, amid concerns over the plant’s reliability and costly required upgrades to meet new EPA standards. Critics argue the acquisition is fiscally irresponsible and unnecessary for meeting customer needs, warning that it could burden consumers with high costs, while NorthWestern claims it will secure reliable energy until cleaner alternatives are available. Regulatory oversight and approval for this deal remain uncertain, with both Montana and Washington utility commissions yet to finalize their stance.
NorthWestern Energy announced it will acquire a significant share of the Colstrip power plant from Puget Sound Energy, a Washington utility mandated to stop using coal by 2025.
NorthWestern stated in a press release that the acquisition will come “at no cost” and enable them to leverage “established, dependable, reliable, and consistently available” infrastructure to meet energy demands. This acquisition follows NorthWestern’s similar deal with Avista, another Colstrip owner, slated to occur on Jan. 1, 2025.
The Colstrip plant faces expensive upgrades due to new EPA emissions standards and scrutiny over reliability after outages during peak power demand. By 2025, NorthWestern will hold a 55% ownership stake in the plant, granting them greater control over its management.
NorthWestern emphasized that majority ownership will allow them to guide investments, ensuring the plant’s 24/7 operation until equivalent carbon-free resources are available. Governor Greg Gianforte praised the deal as a step towards securing Montana-made energy. Clean energy advocates criticized the acquisition, pointing to the plant’s unreliability and a recent rate hike affecting customers.
Anne Hedges of Montana Environmental Information Center called it a “terrible deal” for an “ancient coal plant.” Hedges cited outages during a cold snap in January as evidence of the plant’s unreliability. NorthWestern spokesperson Jo Dee Black countered that the acquisition ensures the plant remains well-maintained.
Hedges also noted the plant needs $2 billion in upgrades to meet pollution standards, with NorthWestern paying a prorated portion based on ownership. NorthWestern expects the plant to operate until “at least 2042.”
Edward Barta of Northern Plains Resource Council deemed the acquisition “fiscally irresponsible,” arguing it does not align with the community’s need for affordable, sustainable energy.
NorthWestern plans to spend over $21 million on operation and maintenance by the end of 2024. Coal costs for fueling the plant are estimated at $31.5 million from July 2024 through June 2025.
This is not the first attempt to transfer Colstrip ownership. A 2019 deal to buy Puget’s share for $1 fell apart due to regulatory friction and disputes among co-owners. Puget’s recent deal with Talen Energy also collapsed quietly.
A Puget spokesperson confirmed the company will retain its transmission line share, crucial for moving Montana wind energy to Washington customers. Puget has engaged commissioners in both states to ensure compliance with state law. NorthWestern does not believe the acquisition requires commission approval.
Montana Public Service Commission Executive Director Dave Sanders indicated the commission’s involvement will depend on the deal’s details. He emphasized the importance of reviewing this significant development in Montana’s energy landscape.
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