Billings council member intervenes in NorthWestern data center rate case
A Billings City Council member and former Public Service Commissioner, Tony O'Donnell, is intervening in a NorthWestern Energy rate case to ensure data centers using 5MW or more fully cover their electricity and infrastructure costs. O'Donnell aims to protect ratepayers from the financial risks associated with power-hungry data centers, advocating that company shareholders should bear the risks of potential obsolescence. This intervention supports a proposed tariff designed to prevent existing customers from being harmed by the demands of new data facilities.
Billings City Council member and former Public Service Commissioner Tony O'Donnell is seeking to intervene in a NorthWestern Energy proposal concerning electricity rates for new data centers in Montana. O'Donnell's objective is to protect ratepayers from the financial risks posed by these energy-intensive facilities, particularly those using 5 megawatts or more. He intends to support a tariff proposal designed to ensure that data centers fully cover their electricity costs and any required system upgrades.
O'Donnell emphasized that all risks associated with AI data centers should be borne by shareholders, not ratepayers, citing their understanding of market risks. He expressed concern that if data centers become technologically obsolete, ratepayers might be left to cover anticipated revenues, with shareholders shielded from the downside. NorthWestern Energy's application states its proposed rule aims to prevent harm to existing customers while supplying power to data centers.
The utility's proposed tariff also includes provisions for customers to pay at least three years of electricity costs if they terminate a contract early. Additionally, agreements for large customers requiring over 50 megawatts would need approval from the currently all-Republican Montana Public Service Commission.