You can view the original post at http://www.montanastandard.com/articles/2009/08/21/opinion/hjjajbhjhhhejj.txt
The guest opinion published Aug. 9 in The Standard by Montana Sens. Jerry Black and Dave Lewis and Reps. Harry Klock and Jesse O'Hara, all Republicans, denigrated me while singing the praises of a proposed transmission line known as MSTI (Mountain States Transmission Intertie). Though surprised I was not shocked.
For three years I have waged a lonely battle against MSTI, voting against the Babcock and Brown buy-out, the NorthWestern Energy rate increase and the new regulating reserve plant all noting MSTI.
I voted for rate basing (though at a premium price) NorthWestern's holdings in Colstrip 4 because of the energy drain if MSTI were built. I am thrilled that the threat MSTI poses is getting the attention it is worthy of. Many thanks to the above-listed legislators for helping.
MSTI is actually a two-step program. One is to upgrade Montana's existing transmission system to export 500 megawatts of "our" electricity to the northwest states. The other project ties into our existing lines near Townsend, then connects into transmission lines near Midpoint, Idaho. This would make 1,500 MW of "our" traditional power deliverable to energy-starved, high- dollar markets in southern California. We need, at the outside, about 1,800 MW. We only have about 1,900 at our disposal. Do the math guys. Can you spell "sellers market?" California currently pays about $104 per megawatt for base-load power. We feel beleaguered paying $48. NorthWestern executives admitted under questioning that merchant electrical power goes to the highest bidder. Golly, who knew?
California has recently obtained the dubious honor of being one of the five highest-cost energy states with the fastest rates of utility bill growth in the nation. The MSTI line would strap us to that market forever.
The immediate effect would be exposing us to triple-digit rate increases. The consequences for families and employers are predictable and very dire. NorthWestern intends to put a phase shifter on the MSTI to be sure that they can suck every last spark out of Montana and deliver it to California's high dollar market. The guest opinion that the four lawmakers signed spoke only of MSTI opening up new "renewable energy" markets. Referring to MSTI as a wind line is corporate camouflage.
Currently the only subscribers to MSTI are PPL, Avista, and Powerex. All three currently supply Montana. There is not one spark of wind power currently subscribed on MSTI yet that is all the legislators (and NorthWestern) talk about.
I expected better from four veterans serving on legislative committees that handle energy issues, but it does explain a lot. When I asked who wanted the opinion piece written, Sen. Lewis replied, "County Commissioner Richard Moe did, and John Fitzpatrick, the lobbyist for NorthWestern, supplied the ‘facts.'" Perhaps that is why they focused on county taxes and corporate propaganda rather than their constituents.
The MSTI line is not the wind line. The wind lines are called the "collectors" and are in north central Montana. They also tie into our transmission line at Townsend. It is a separate project and MSTI is not dependent on their construction. The legislators are correct, though, that the collectors can gather about 5,000 MW of wind power and run it through our existing lines.
There is not enough "regulating reserve" in all of the Bonneville Power system to handle 5,000 MW of wind power and when asked how they intended to handle line imbalance caused by so much wind NorthWestern responded, "We have not considered it." The fine for line imbalance is $1 million per day. Ratepayers could get stuck with it as well as reliability charges on the MSTI line. The wind generation would be owned primarily by foreign national corporations based in Spain, Portugal and Ireland. U.S. taxpayers would subsidize them to the tune of $960,000 per day for 10 years.
Interestingly, all four legislators, Klock, O'Hara, Black and Lewis, voted to tax the "collector" lines that would serve Californians at a rate 900 percent less than they tax Montanans for the same transmission service. Klock, O'Hara and Black voted against a $37.5 million utility rate decrease.
I shall not accept criticism from them for trying to protect consumers rather than corporate interests and wealthy constituents. I have challenged each to a debate in their home towns on the merits of MSTI to consumers. None has yet accepted.
Pompous legislators without a working knowledge of energy issues blindly carrying water for an electric utility. I know I've heard of that. Remind me how it worked out.
— Republican Public Service Commissioner Brad Molnar of Laurel represents District 2. He may be reached via e-mail at bmolnar@mt.gov.
