Officials take step on wind power accord

HELENA – State untility regulators have changed their minds, again, about the rules for deciding a key wind-power contract and will allow two competing power marketers to scrutinize that contract.

On a unanimous vote Friday, members of the Montana Public Service Commission chose to let PPL Montana and Exergy Development Group take part in the formal review of a contract that could establish Montana’s first major wind-power project. The vote reversed a 3-2 decision on Tuesday that had excluded the two companies from the case.

NorthWestern Energy, the state’s largest utility, is asking the PSC to approve a company contract to buy up to 150 megawatts of electricity from a wind farm near Judith Gap. PPL Montana, the state’s largest power generator, and Exergy, a competing wind-power developer, have criticized the contract as not in the best interest of NorthWestern customers.

While the commission decided to let PPL and Exergy take part in the review, it said their involvement will not delay a decision on the contract.

“I think we bite the bullet and we tell our parties what the process will be … that this is the way it’s going to work,” Commissioner Tom Schneider, D-Helena, said in proposing that PPL and Exergy be allowed into the case.

Commissioners said that a March 17 hearing on the contract will proceed as planned, and that the PSC still is aiming for a decision by March 31. NorthWestern and Invenergy, the company proposing the Judith Gap wind farm, have said they need a decision by that date to start construction and complete it this year.

Developers of the project say it needs to be operating this year to take advantage of a federal tax credit that makes the power affordable.

PPL Montana spokesman David Hoffman said Friday his company “applauds the PSC decision” and will meet the tight deadlines for submitting testimony.

PPL Montana has questioned whether the wind-power contract offers the best price for Montana consumers, among other things. PPL Montana is bidding to sell power to NorthWestern past mid-2007, but so far its offers have been rejected.

Exergy, beaten out by Invenergy in the bidding process for the wind-power contract, says it’s better to build several smaller wind projects rather than one, large 150-megawatt project.

Friday’s decision allows PPL Montana and Exergy to submit formal testimony in the case, ask for documents from NorthWestern, and cross-examine witnesses at the March 17 hearing. However, the PSC said the companies will not have access to information that Invenergy and NorthWestern consider confidential trade secrets.

NorthWestern had objected to any formal involvement by PPL Montana and Exergy, saying it could lead to delays that will sink the project. Both companies are competitors that may be trying to undercut a contract they didn’t win, the company has said.

John Hines, director of energy supply for NorthWestern, said Friday he remains concerned the process could be used “to eliminate what I think is a really good wind project for Montana.”