Local
control over our energy future is the best option
Lots of questions still hang in the air above
five Montana cities' bid to buy NorthWestern Energy Corp., says Missoula
City Council representative and candidate for mayor John Engen. But the
concept of public ownership of the utility is important and should be
given a chance to succeed, he said.
With its 8-4 vote from the City Council, Missoula joined the governments of Bozeman, Great Falls, Helena and Butte-Silver Bow in making an unsolicited bid to buy NorthWestern for $2 billion. They formed the nonprofit MPPI. It would finance the purchase by issuing bonds through the New York investment bank Citigroup. MPPI would run the Montana portion of the business. Missoula Mayor Mike Kadas is chairman of the MPPI board. Without taking action, the energy fate of NorthWestern's Montana customers could get worse instead of better, Engen said. Because the company is in a weak financial state, it's at the mercy of predatory investors who are concerned with the bottom line, not maintaining the powerlines. Some investors look for these companies to buy and sell and make a quick buck. ”It could be an investment group from wherever with little interest in maintaining rates, providing excellent service, taking care of the facilities, improving the facilities and investing in our energy future,“ Engen said. Generally, he's in favor of letting markets work, he said. ”But in these natural monopolies, I think it makes sense,“ he said. ”Deregulation has not been Montana's prettiest hour.“ There are still plenty of questions to ask about MPPI, he said. Who will run it? How can we insure its governing board operates openly, transparently, fairly and equitably? Should its members be elected or appointed? Does everyone in the state get a fair shake? And there is plenty of criticism, he said: What business does government have running a utility? Is $2 billion too much? Are the power transmission facilities in good shape - there's reason to believe they've been neglected. ”I'm aware of those criticisms, and I think we have to be aware of them and be vigilant,“ he said. ”But I also believe we have hundreds of people working for NorthWestern Energy today who worked for Montana Power yesterday who will help us run this as a public utility as well or better than private enterprise.“ MPPI will have to do its due diligence when the offer comes to fruition, Engen said. With the exception of the negotiating details, none of his questions have gone unanswered, he said. ”If you step away from the details and look at the concept, electric co-ops throughout the state have done a terrific job at serving customers,“ he said. ”I'm no expert, but I have every reason to believe that this is viable.“ Reporter Ginny Merriam can be reached at 523-5251 or by e-mail at gmerriam@missoulian.com |
