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Officials: Montana unlikely to mirror PJM price shocks; large‑load tariff protections discussed

Butte‑Silver Bow Sabey Data Center Ad Hoc Committee · January 27, 2026

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Summary

Bob Morris told the committee that recent capacity‑market price volatility in PJM does not map onto Montana’s regulated system; the committee also discussed a large‑load tariff and staff said customers would be protected by the regulatory process and required upgrade costs.

Committee members heard an informational briefing on electricity markets and a recap of local tariff work intended to shield customers from cost shifting when a large load connects.

Bob Morris summarized why recent headlines about large price increases in the PJM capacity market are not directly transferable to Montana: PJM uses capacity auctions and has retired many thermal generators while adding intermittent wind and solar; by contrast, Montana does not use capacity markets, relies on state regulatory planning and participates in Western resource adequacy programs. Morris concluded that the mechanics driving PJM’s capacity‑auction prices are different from Montana’s regulated planning process.

Paul Babb summarized the county’s large‑load tariff approach: a prospective large customer would be responsible for its own transmission and distribution upgrades and the regulatory review (through the Public Service Commission) would protect other customers from cost shifting. Babb said the county has acquired energy resources and that the council previously voted unanimously to send a letter of support on the tariff to the PSC.

Public comment and context: several members of the public asked how many local jobs Sabey would provide and whether property‑tax and job outcomes justify land‑use decisions; county staff acknowledged job‑count uncertainty and said they would press Sabey for direct job numbers and other economic detail for the council.

Next steps: staff will include energy and tariff materials in the committee’s slide deck and forward the large‑load tariff briefing to the council as part of the committee’s package.