NorthWestern Energy files data center tariff proposal

NorthWestern Energy has submitted a "Large New Load Tariff" application to the Montana Public Service Commission (PSC), outlining proposed terms for providing electricity to data centers and other large-load customers. This move comes amid public controversy surrounding data centers in Montana, with concerns about their significant water consumption and potential for increased power bills for existing customers. PSC spokesperson Jamey Petersen noted that state law prohibits a utility from serving large loads if it adversely impacts other customers long-term. The utility's proposal aims to create a framework for agreements that ensure new large-load customers, such as data centers, are responsible for associated costs, thereby protecting existing customers from subsidies. However, Anne Hedges of the Montana Environmental Information Center (MEIC) expressed strong reservations, criticizing the proposal for potentially limiting PSC oversight and public participation, especially for data centers under 50 megawatts. Hedges argued that the tariff proposal could allow NorthWestern Energy to unilaterally execute agreements with data centers of this size without prior PSC approval or public review. The MEIC intends to intervene in the docket to push for increased PSC control and transparency, and advocates for a separate rate class specifically for data centers. The PSC has yet to schedule a hearing for NorthWestern Energy's application.