NorthWestern Energy’s resource plan gets criticisms for ignoring data centers
NorthWestern Energy's long-term energy plan is drawing criticism from the public and advocacy groups for failing to adequately address climate change, suppress fossil fuels, and properly account for the impact of data centers on consumer electricity bills. Stakeholders are urging the Montana Public Service Commission to identify deficiencies in the plan, which they say could lead to increased costs for Montanans due to data center demand. Draft consumer protection legislation is also being developed for the 2027 session.
NorthWestern Energy's 20-year Integrated Resource Plan (IRP) for meeting Montana's energy needs is facing significant criticism from members of the public and a coalition of advocacy groups, including Earthjustice and the Montana Environmental Information Center (MEIC). These groups argue that the plan fails to adequately address climate change by continuing to rely on fossil fuels, suppresses clean energy alternatives like battery storage, and does not accurately project or disclose the demand and cost implications of data centers on the state's power grid.
Critics, such as Amy Cilimburg from Climate Smart Missoula and Ashley Fisher of Helena, highlight concerns that data centers will significantly increase power bills for Montanans, citing studies showing substantial rate hikes in other states. The MEIC and its partners have also criticized the Montana Public Service Commission (PSC) for limiting public participation in the review process. The filing from Earthjustice further notes that the IRP overlooks the potential impact of NorthWestern Energy's pending merger with Black Hills Corp., which could accelerate the utility's capacity and affect customers if data centers come onto the grid.
The PSC, which has stated it can identify deficiencies but not approve or reject the plan, anticipates taking up the plan in mid-August. MEIC is also working on draft consumer protection legislation for the 2027 session to ensure Montanans do not bear the costs associated with data center development.