NW Energy’s resource plan criticized for ignoring data centers
NorthWestern Energy's Integrated Resource Plan for Montana is facing criticism from the public and advocacy groups like Earthjustice and Climate Smart Missoula. Critics argue the plan fails to adequately address climate change, understates the impact of data centers on electricity rates, and prioritizes fossil fuels over renewables. The Montana Public Service Commission is reviewing the plan, but its authority is limited to identifying deficiencies.
NorthWestern Energy's long-term energy plan, the Integrated Resource Plan (IRP), is under scrutiny in Montana from both the public and a coalition of 16 advocacy groups, including Earthjustice and Climate Smart Missoula. Critics argue the plan inadequately addresses climate change, as highlighted by Amy Cilimburg of Climate Smart Missoula, who pointed out its singular mention in the extensive document despite ongoing global warming trends.
A significant concern raised is the IRP's failure to properly account for the impact of data centers on electricity rates. Ashley Fisher of Helena referenced a University of Michigan study that showed substantial rate increases for residential customers in other states following data center construction. Earthjustice contends that NorthWestern Energy is negotiating to significantly increase its retail load to serve data centers but has not accurately projected this demand or disclosed enough information about these agreements in its plan. The Montana Environmental Information Center (MEIC) also raised process concerns regarding limited public participation in the IRP review, noting only two public meetings were held.
The Montana Public Service Commission (PSC) is reviewing the plan, with Commissioner Annie Bukacek expecting discussions in mid-August. However, PSC chief legal counsel Amanda Webster clarified that the agency's authority is limited to identifying deficiencies, not approving or rejecting the plan. Advocacy groups further criticized the plan for prioritizing fossil fuels and unproven small modular nuclear reactors over renewable energy and for arbitrarily capping battery storage, suggesting it favors company returns over consumer affordability and environmental protection. They also noted the plan's omission of NorthWestern Energy's pending merger with Black Hills Corp., which could significantly influence future resource adequacy and load forecasts given potential data center demands. NorthWestern Energy was unavailable for comment.