NorthWestern Energy's resource plan gets criticisms for ignoring data centers
NorthWestern Energy's long-term resource plan is facing criticism from the public and advocacy groups for not adequately addressing the impact of data centers on power bills and the environment, and for favoring fossil fuels over renewable energy. The Montana Public Service Commission is set to review the plan in mid-August, though it only has the authority to identify deficiencies. Critics allege the plan fails to accurately project data center demand and lacks transparency regarding agreements with developers.
Members of the public and a coalition of advocacy groups have voiced strong criticism against NorthWestern Energy's Integrated Resource Plan, a 20-year projection for meeting Montana's energy needs. Filed with the Montana Public Service Commission, the plan is accused of failing to adequately address the impact of data centers on consumer electricity bills and largely ignoring climate change while continuing to favor fossil fuels. Critics, represented by organizations like Earthjustice, Climate Smart Missoula, and Montana Environmental Information Center (MEIC), argue that the utility does not accurately project demand from data centers and lacks transparency regarding agreements with data center developers.
Ashley Fisher, a Helena resident, cited a University of Michigan study indicating that data centers can significantly increase residential electricity rates, with some areas seeing price doublings. Shannon James of MEIC also raised concerns about the process, noting the PSC held only two public meetings in Helena, limiting public participation. James further criticized the plan's reliance on "commercially unproven" small modular nuclear reactors and its arbitrary caps on clean energy alternatives like battery storage, suggesting the plan prioritizes company returns over affordability for Montanans.
The Earthjustice filing also highlighted NorthWestern Energy's proposed merger with Black Hills Corp., which is pending with the PSC. Critics contend that the utility's failure to account for this merger in its 2026 IRP is a "significant oversight" given its potential to dramatically influence future resource adequacy and load forecasts, especially with data centers coming onto the grid. PSC chief legal counsel Amanda Webster clarified that the commission can only identify deficiencies in the plan, not approve or reject it, with Commissioner Annie Bukacek stating the plan is expected to be taken up in mid-August.