Committee grills sponsor as Montana bill would limit PSC authority over large customers; HB 877 tabled

John Fitzpatrick, sponsor and representative for House District 76, introduced House Bill 877 as the "Montana Data Center Development Act," saying the measure would stop the Public Service Commission from "playing king" and would prevent the PSC from prohibiting a regulated utility from serving new large customers so long as service would not harm existing customers. "This bill simply says no," Fitzpatrick said about PSC authority to bar utilities from taking on large loads.

Opponents warned of wide consequences if oversight is reduced. Brad Molnar, president of the Montana Public Service Commission, called the proposal a deregulation bill and said it "strips away PSC oversight," citing past problems from deregulation and the risk of stranded costs that could fall to residential ratepayers. "Call it what you want to, it's a deregulation bill," Molnar said. Anne Hedges of the Montana Environmental Information Center and other opponents highlighted that parts of 2007 reregulation remain important protections and urged safeguards so existing customers do not subsidize new industrial loads.

Large-customer representatives said they were "soft opponents" who would remove objections if the bill were amended. Sarah Clerget, representing a large customer group and Talon Energy, said the bill as drafted could force customers who chose market "choice" after 2007 back into bundled service and might conflict internally with existing law unless amended.

Northwestern Energy and business groups framed the bill as an economic-development tool. Alan Olson, director of government affairs for Northwestern Energy, told the committee the measure supports prudent investment and said the PSC retains authority to set tariffs and regulatory processes. Todd O'Hare, president and CEO of the Montana Chamber of Commerce, said expanding generation and enabling large customers to locate in Montana could create jobs and boost the state economy.

Committee members pressed witnesses on technical details. Several lawmakers asked how the bill would protect residential and small-business customers if new data centers or other large users were added to the grid; PSC staff and other witnesses explained the difference between upfront PSC review and later rate-making and warned of litigation risk over what costs are "used and useful." Derek Goldman of the Northwest Energy Coalition urged a "stop-and-look" approach, saying the committee should assess who would pay for transmission and generation upgrades.

After sponsor closing remarks and a brief executive-action period, Vice Chair Cordova moved to table HB 877. The committee voted to table the bill by roll call, 8 ayes to 6 nos. No formal policy change was adopted; the tabling preserves the option for future reconsideration or amendment.