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PSC opens investigatory notice on Northwestern Energy Colstrip share transactions
Summary
Commission staff recommended and the PSC approved a notice of investigation seeking details about Northwestern Energy's acquisition and handling of additional Colstrip generating shares, asking about affiliate arrangements, governance, cost allocation and protections for Montana retail customers.
The Montana Public Service Commission on May 5 approved staff's recommendation to issue a draft notice of investigation into Northwestern Energy's acquisition and subsequent handling of additional Colstrip generating shares, directing the utility to respond to information requests about governance, affiliate transactions and customer protections.
Regulatory division administrator Will Rosequist told the commission staff drafted the notice after Northwestern announced acquisitions that raised jurisdictional and affiliate-transaction questions. Rosequist summarized filings showing Northwestern had discussed acquiring Puget Sound Energy's 370-megawatt share and Avista's 222-megawatt share of Colstrip and later filings indicating an unregulated affiliate (a Colstrip 370 PU LLC) would hold the Puget share and sell its output at wholesale under FERC jurisdiction.
The draft notice, Rosequist said, is intended to gather information on joint-ownership governance at Colstrip, the role of the plant operator Talon, how owner votes and decisions are made, and safeguards to prevent Montana retail customers from bearing affiliate-related costs or risks. "The draft notice before you today is designed to gather information on several related issues," Rosequist said, and staff recommended requiring Northwestern to respond within 30 days if the commission approves the notice.
Several commissioners suggested additional legal questions could be appropriate, including whether the affiliate's creation and the procedural steps around it were lawful. Staff advised that adding legal-scope questions would be possible later through a motion worked with legal staff, and that the current notice focuses on transparency, cost allocation and customer protections.
A commissioner moved to approve issuance of the attached notice of investigation. The motion was seconded and the commission approved the staff recommendation; the transcript records the motion as carried with one commissioner (Brad Molnar) recorded as dissenting and includes inconsistent spoken vote tallies in the record (see audit notes). Commissioners said the investigatory docket is the appropriate venue to gather facts before making further determinations about customer impacts.
Staff said the notice would require Northwestern to answer a set of specific questions within 30 days, after which the commission would decide next steps in the investigation. Commissioners urged staff and legal to continue refining scope and to consider additional questions if warranted.
