Renewable Energy Mandate Both Praised, Condemned
May 11 - Missoulian, Helena, MT
A bill requiring utilities to obtain 15 percent of their electricity from renewable energy sources won praise Monday from agricultural and environmental groups as key to a clean, sustainable economic future, but was condemned by utilities as an unneeded mandate that will cost consumers.
It would require NorthWestern Energy, MDU Resources Group and power marketers
to obtain 5 percent of their power from wind or other renewable energy sources
by 2008, 10 percent by 2010 and 15 percent by 2015. Rural electric cooperatives
are exempt.
Backers said it would result in lower costs, protect the environment from
fossil fuels burned in coal and natural gas plants, and spur Montana's rural
economy. It would protect consumers because the state Public Service Commission
could set costcaps above which the standards would not be enforced.
"Central and eastern Montana are some of the best places in the world
for wind energy," Tester said. With federal and state tax incentives, the
price of wind power is very competitive, he said.
PSC Chairman Greg Jergeson, D-Chinook, told how the PSC recently approved
NorthWestern's contract to buy electricity from a proposed wind project in
Judith Gap at a cheaper cost than the utility's current portfolio prices. He
said adding wind to the company's portfolio would stabilize rates.
"We're prepared to invest hundreds of millions in Montana," said
Roby Roberts of PPM, a wind power company, and president of the American Wind
Energy Association, adding: "This is one of the finest wind resources in
the world, and we think SB415 will go a long way to kick-starting this
market."
Opponents, however, disagreed with many of supporters' claims.
John Fitzpatrick, NorthWestern's governmental affairs director, said he found
it ironic that his company is the only utility in Montana voluntarily seeking
wind power, yet would be required to buy more to meet the mandate. He called for
the bill to be amended to include all energy companies.
The panel took no immediate action on SB415.
Copyright The Missoulian Apr 12, 2005