Montana joins lawsuit that targets Avista dams and others

HELENA, Mont. — The state of Montana will join a federal lawsuit that demands the owners of hydroelectric dams sitting on state-owned river beds reimburse the state for the use of the land, Attorney General Mike McGrath said Monday.

The lawsuit was filed in October by two Bozeman residents against PPL Montana, Avista Corp. and PacifiCorp. The plaintiffs contend that since the companies’ dams sit on state property, the companies owe lease payments dating back decades.

Richard Dolan and Denise Hayman brought the lawsuit “on behalf of the state, (their) children, the public school fund and all other beneficiaries of the school trust.” The Great Falls Elementary and High School District is also a plaintiff in the case.

McGrath said he filed paperwork Monday to have the state formally join as a plaintiff.

“We think this case raises significant issues of public policy regarding the use of state lands,” McGrath said. “Other users of state lands are required to reimburse the people of Montana. The users of these lands should be held to the same standard.”

Hugh Imhof, a spokesman for Avista, declined comment when reached Monday. PPL Montana spokesman David Hoffman was out of the office and not immediately available for comment. Officials with PacifiCorp. could not immediately be reached.

Federal and state laws authorize the leasing of state lands for the development of “power sites,” such as the 12 dams owned by PPL Montana, Avista and PacifiCorp. Montana law also requires rental payments on leases on such state lands at fair market value, McGrath contends.