Renewable Energy Mandate Both Praised, Condemned

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.

At issue before the House Federal Relations, Energy and Telecommunications Committee was Senate Bill 415, by Senate President Jon Tester, D-Big Sandy.

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.