Montana Energy Customers Deserve Better

Montana customers deserve a reliable source of energy at fair and competitive rates.

But if NorthWestern Energy has its way, they could end up with neither.

In 1999, PPL invested three quarters of a billion dollars in the future of Montana with no guarantees. As one of the many generators who sell power in the state, PPL Montana plays by the same market rules as everyone else. In fact, PPL Montana is the reason that electricity rates in Montana have remained stable.

Between 1999 and 2002, NorthWestern’s energy customers paid 2.25 cents per kilowatt-hour for electricity supplied by PPL Montana. As a result, customers were insulated from the extremely high Western market prices.

PPL Montana now supplies about 60 percent of the electricity that NorthWestern sells to its customers at an average price of just under 3.2 cents per kilowatt-hour, which is the lowest-priced supply in NorthWestern’s current portfolio. This fixed-price obligation continues until mid-2007 and once again demonstrates PPL’s commitment to provide a reliable source of energy at competitive prices.

Last summer, when NorthWestern asked for bids for its electricity, called its “default supply portfolio,” PPL Montana was one of 44 bidders. We submitted a number of competitive offers to give NorthWestern a wide array of contract alternatives, several of which were placed on a short list deserving further consideration compiled by the independent third-party NorthWestern hired to evaluate the bids. One of those offers was a proposal to provide all of NorthWestern’s default supply needs at a price we believe would provide the lowest cost, long-term supply of electricity for Montana customers.

Rather than focusing on the needs of electricity users and choosing the most competitive bids, NorthWestern continues to promote offers from its own affiliates and uneconomic generation alternatives which may not reflect the true cost to consumers.  Unfortunately, Montana’s electricity users may pay the costs for ill-conceived projects for many years to come.

This is about what is best for Montana consumers in the long-term. Unfortunately, NorthWestern’s actions may lead to Montana customers paying more than necessary for their electricity. Maybe it’s time customers have other choices. 

PPL has been a consistently reliable source of economic electricity to Montanans. We stand ready to work with default suppliers and customers in Montana, because this is where we live and where we want to sell our power.

Bradley E. Spencer