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PSC commissioner urges Billings council to back return of coal‑plant capacity to rate base
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Summary
Montana Public Service Commissioner Brad Molnar asked the Billings City Council to send a letter supporting reversal of a decision that would permit Northwestern Energy to treat 370 megawatts from a coal‑strip plant as market‑based rather than rate‑based, saying the change could raise utility rates and reduce local tax revenue; he requested council cooperation and a letter by April 30.
Brad Molnar, Public Service Commissioner for District 2, addressed the Billings City Council to describe a recent filing by Northwestern Energy with the Federal Energy Regulatory Commission (FERC) to treat 370 megawatts of coal‑strip generation capacity as market‑based rather than rate‑based. Molnar said that change could allow the company to sell the output to the highest bidder, including data centers, instead of keeping it as rate‑based power for Montana residents.
Molar (sic) explained that the originally planned facility would have produced among the lowest‑cost electricity in the country and that moving the asset out of the rate base could increase utility bills and reduce property‑tax revenue tied to rate‑based valuation for schools, cities and counties. He asked the council to file a letter supporting reconsideration of Northwestern Energy’s FERC filing and to request that the facility be returned to the rate base for Montana residents; he requested a filing by close of business on April 30.
"All that I'm asking for at this time is a letter of support filed with the Federal Energy Regulatory Commission asking if they reconsider their decision," Molnar said. He noted he had already coordinated with local council member O'Donnell and urged cooperation across jurisdictions.
Mayor Nelson thanked Commissioner Molnar and Council member O'Donnell acknowledged the potential local benefits of lower utility rates if the asset remained rate‑based. Council did not take formal action at the meeting but Molnar asked anyone interested to contact him directly.
Note: Molnar referenced a FERC filing and a 370‑megawatt figure in his presentation; text of any letter or formal council directive was not recorded at this meeting.
