NorthWestern Energy’s power plan found ‘deficient’ by independent review
Montana state regulators have ordered NorthWestern Energy to revise its 20-year power plan, known as the Integrated Resource Plan (IRP), after an independent review found it deficient. The plan, which estimates future power needs and supply, was criticized by commissioners, public commenters, and environmental groups for failing to adequately justify investments in new power resources, address affordability, or account for climate change. A key deficiency highlighted was the plan's uncertainty regarding future power needs for data centers and the potential for costs to be passed to existing customers.
The Montana Public Service Commission (PSC) has directed NorthWestern Energy to revise its 20-year Integrated Resource Plan (IRP), citing significant deficiencies identified by an independent review from the consulting firm GDS. The PSC voted 3-1 to mandate these revisions, with PSC Vice President Jennifer Fielder emphasizing the necessity for critical information to ensure future energy decisions are based on a complete, transparent, and verifiable plan.
The GDS report specifically criticized NorthWestern's IRP for failing to explain the need for new, expensive power resources and questioned the reproducibility of the utility's demand forecasting models. This lack of clarity, Fielder stated, increases the risk of either over-building facilities, leading to higher rates, or under-preparing, which could jeopardize reliability. Public commenters and environmental advocates, including Missoula resident Michael Hudson and Nick Fitzmaurice of the Montana Environmental Information Center, echoed these concerns, highlighting rising customer rates, the plan's reliance on fossil fuels, and its omission of climate change considerations. Fitzmaurice also pointed out that NorthWestern's existing agreements to power data centers have not been made public, raising worries that the costs associated with these power-hungry facilities could be disproportionately borne by existing customers.
NorthWestern Energy spokesperson Jo Dee Black acknowledged the complexity of integrated resource planning, stating the utility's focus is on work that meaningfully improves planning discussions. NorthWestern Energy has been given until September 18 to address the identified flaws or request an extension.