Committee Backs Energy Plan
HELENA - May 16 - Billings Gazette, The
A House committee passed a bill Thursday requiring utilities to obtain a portion of their electricity from green power sources, but only if the measure does not increase consumer's utility costs.
With increasing oil costs, natural gas prices are on the rise, supporters say
But wind energy will stabilize rates and is also better for the environment
because it reduces air pollution from fossil fuels burned from coal and natural
gas plants.
NorthWestern Energy, which opposes the bill, says the measure unfairly
targets its business. Placing a mandate is unnecessary when the company has
voluntarily sought out renewable energy sources, said John Fitzpatrick,
NorthWestern's governmental affairs director. The company recently received
Montana Public Service Commission approval to sign a 20-year contract to buy up
to 150 megawatts of wind power from a project that will be built near Judith Gap
in Wheatland County.
Most lawmakers supported the use of renewable energy sources, but they
adopted an amendment by Rep. Mark Noennig, R-Billings, to make sure no extra
burden falls on consumers. "I like the idea of wind power, but I don't want
my constituents to pay for it," Noennig said.
The effects wind power will have on utility rates is somewhat uncertain, said
Rep. George Groesbeck, D-Butte. Supporters say it will decrease costs over time
while opponents argue it will increase.
NorthWestern buys 70 percent of its power from PPL Montana through contracts
that expire in mid-2007 If using wind is not as cost effective as the energy
sources it gets from hydroelectric dams and coal-fired power plants, the company
would not be required to use wind or other renewable sources.
Right now, the price for wind energy is competitive in the market, said
Fitzpatrick because the federal government provides production tax credits to
wind projects. The tax credits are scheduled to end Dec. 31. Should the
government reduce the tax incentive, it could significantly increase the costs
for wind energy.
"If the tax credit goes away, then consumers would get hammered:' he
said.
MDU generates its own power. Under an amendment approved by the committee, if
the company generates power using wind or other renewable sources and it costs
more than 15 percent of its current expenses, then MDU also is exempt from this
bill.
Patrick judge of the Montana Environmental Information Center said he is
concerned by the implications of the amendment, but he was happy the bill passed
out of committee. The change discourages local communities from constructing
wind turbines because such projects slightly increase utility rates, Judge said.
But the benefit of locally owned wind projects is that it allows communities to
produce and consume energy in the same relative location. Plus, wind turbines
all across the state produce power more efficiently then one project in a
central location, he said.
Copyright Billings Gazette Apr 15, 2005