Who wants a say in power rates for Montana data centers?
NorthWestern Energy in Montana has proposed new electricity rate structures specifically for large power users, primarily data centers. The Montana Public Service Commission is reviewing these proposals, with several entities and the public seeking to provide input on the rates and the broader implications of data center development across the state.
NorthWestern Energy, Montana's largest electric utility, has introduced a new rate structure specifically for large electricity consumers, predominantly targeting new data centers. These proposals include one structure for customers requiring 5 to 50 megawatts and another for those needing over 50 megawatts, with varying contract lengths and terms, such as financial penalties for early termination and provisions for prioritizing existing customers during emergencies. The utility asserts these terms aim to prevent existing residential and commercial customers from subsidizing infrastructure costs for new, power-hungry developments, while also promoting economic development.
The Montana Public Service Commission, an elected utility board, is now reviewing these proposed rates, and nine entities have sought approval to weigh in on the process. This initiative comes amidst growing statewide and nationwide opposition to data center proliferation, with Montanans, including residents in Missoula, actively seeking more input on local data center projects through means like citizen ballot initiatives and public discussions.