Debate over Public Service Commission restructure frames HB 363; regulators and utilities clash at Energy committee

Representative Larry Brewster introduced House Bill 363 to the House Energy, Technology, and Federal Relations committee, proposing to restructure the Montana Public Service Commission (PSC) from five elected commissioners to a hybrid model with three appointed members and two elected members, six‑year terms for commissioners, and districting tied to the state's congressional districts.

The hearing featured extended opposition from current and former PSC officials and consumer groups and support from business interests. Brad Molnar, president of the Montana Public Service Commission, told the committee he opposed the bill and warned that appointed commissions tend to correlate with higher utility rates and reduced local accountability: "If you're appointed, you're gonna be a lobbyist from around Helena," he said, adding concerns about dark‑money spending in PSC races. Jennifer Fielder, PSC vice president and an elected commissioner, also opposed the bill and pointed to PSC decisions that she said saved ratepayers money: "In the last 7 years, our decisions have saved ratepayers over a $100,000,000," she told the committee.

Opponents argued the bill risks utility capture because the proposed appointment process allows regulated entities to suggest candidates and imposes qualifications that could exclude local elected commissioners. Roxy Reller of the Northern Plains Resource Council and former commissioners echoed concerns that moving to appointments would remove an important electoral check.

Todd O'Hare, president and CEO of the Montana Chamber of Commerce, supported HB 363, saying a PSC with business, finance and technical expertise would provide regulatory certainty needed to attract large investments in electrical generation. O'Hare argued predictability in regulation matters for long‑term capital projects.

Testimony included concrete numbers from a recent PSC rate case: witnesses said Northwestern Energy initially sought what the public was told was a 28% increase over a multi‑year period; commissioners and staff clarified the request and settlement translated to about 24% over roughly four years, with roughly 40% described as pass‑through costs the PSC could not disallow. Opponents and supporters debated whether an appointed majority would produce different outcomes in rate cases, with witnesses noting multiple factors beyond commission selection influence rates.

Committee members pressed the sponsor and witnesses on specific bill provisions — appointment mechanics, qualifications for appointed commissioners, whether utilities would be allowed to suggest candidates, the six‑year term and transition timing — and the sponsor repeatedly described the bill as a starting template open to committee amendment.

The hearing concluded with the sponsor encouraging amendments; the committee did not take executive action on HB 363 at the hearing.