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Montana PSC delays review of NorthStar Development settlement until Dec. 16
Summary
The Montana Public Service Commission agreed to continue consideration of a settlement with NorthStar Development LLC over water and wastewater service so commissioners can review a finalized agreement and address ratepayer-protection concerns; the motion passed unanimously.
The Montana Public Service Commission on Dec. 2 agreed to continue review of a settlement with NorthStar Development LLC until its Dec. 16 business meeting so commissioners can examine a newly finalized agreement addressing water and wastewater service near Helena.
Theresa Omens, a staff attorney, told the commission that staff and NorthStar finalized an agreement on Nov. 28 but that "there was not sufficient time for the commission to review that settlement before today's work session." She said the commission had earlier issued Order 7744G establishing preliminary penalty amounts and had directed NorthStar to either appear for a hearing or request settlement discussions.
Senator Dunwall, speaking during the public-comment portion, said she was "looking forward to hearing" the commission's update on the NorthStar water issue in her senate district and stressed that residents "should be able to rely on 24/7 water availability" for basic household needs.
During commissioner discussion, Commissioner Panucci raised a concern repeatedly voiced by members of the public: "If there's a fine that's in this agreement, it'll simply just get passed on to the rate payer." Omens declined to discuss details of the confidential settlement talks but said that the concern about rate impacts had been considered during negotiations. Another commissioner noted that commission practice typically does not permit fines to be placed in rate base and that cost-recovery questions would be examined in any subsequent rate case.
A motion to continue consideration of the settlement until the commission's Dec. 16 business meeting was made, seconded, and carried unanimously. The commission directed staff to place the settlement on the Dec. 16 agenda for review and potential approval or further action.
What happens next: The commission will review the settlement document at its Dec. 16 meeting. If commissioners do not accept the settlement, the docket could proceed to a hearing; if they accept it, any questions about cost recovery would be addressed separately in a rate case or other appropriate proceeding.
