Aaron Flint posted on September 03, 2010 08:28
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The subject of a green power mandate is taking center stage in the race for the Montana Public Service Commission.
Incumbent Ken Toole (D-Helena) is facing challenger Bill Gallagher (R-Helena) in the November election for the 5th District seat on the PSC. The Flathead Beacon profiled the race this week, noting the contrast between the two:
Gallagher seeks to make the PSC District 5 race about a pushback against Democratic control of state governing bodies like the Land Board and PSC, where Democrats hold a 4-1 majority. He calls Toole a “career politician” in the sway of environmentalists, who supports conservation and efficiency mandates that could end up raising rates for consumers.
Toole is unrepentant that improving efficiency is economical and obtainable.
“Energy efficiency is the cheapest thing to do to meet our power needs,” Toole said. “I’ve been a long-term advocate of it.”
Meanwhile, as the state's Renewable Portfolio Standard enters as a leading issue in the PSC race, Dave Skinner offers up some interesting insight in his weekly opinion column.
Then there is the idea, and implications, of renewable energy standards (RES). As you’ll remember, Montana has an RES of 10 percent (increasing to 15 percent in 2015) for public utilities (not electric co-ops). That became law in 2005, passing by one vote in the state Senate, when Sam Kitzenberg (remember him?) switched his vote. The bill’s sponsor? Now-U.S. Sen. Jon Tester.
On Aug. 12, Montana-Dakota Utilities asked the Public Service Commission for a 13 percent rate hike, mainly because of the higher cost of renewable power. The Billings Gazette reports MDU ratepayers, mostly in eastern Montana, will be hit with a 14.5 percent net increase – about $100 per year per household.
Now, why would 10 percent more power cost 14.5 percent more? Oh yeah, renewables cost more. With RES’s set to rise again to 15 percent in 2015, MDU and Northwestern will inevitably be back for what is sure to be more … don’t forget, the first facilities to be built are usually the low-hanging fruit that are easiest and cheapest to bring on line.
Fortunately for the folks in Glasgow, who will be heading to Glendive tonight (as I type) for the Scotties football game, MDU is not their supplier for electricity, so they will not pay the electric increase attributed to former State Senator Sam Kitzenberg's (D-Glasgow) vote. Just don't tell that to the folks in Glendive though.
Then again, Northwestern Energy is subject to the Renewable Portfolio Standard as well. So everyone in Glasgow, less than 20 miles from one of the cheapest electric power sources in the country (The Fort Peck Dam), brace yourselves for a rate increase.