(C) Daily Montanan This story was originally published by Daily Montanan and is unaltered. . . . . . . . . . . Getting to know Montana Public Service Commissioner candidates • Daily Montanan [1] ['Keila Szpaller', 'Daily Montanan Staff', 'Blair Miller', 'Jenna Martin', 'More From Author', '- May', '.Wp-Block-Co-Authors-Plus-Coauthors.Is-Layout-Flow', 'Class', 'Wp-Block-Co-Authors-Plus', 'Display Inline'] Date: 2024-05-24 About these Q&As The Daily Montanan sent candidates in this race a list of five questions prepared by staff members. Candidates who do not appear with the rest of the candidates in the race did not submit answers to the Daily Montanan. If you have any questions, please reach out to [email protected] A lot of power bills and garbage service in Montana are overseen by elected Public Service Commissioners, and three of five seats are up for grabs this year. In District No. 2, two former Republican commissioners face off in the primary, Sen. Brad Molnar of Laurel and Kirk Bushman of Billings. One Democrat, Susan Bilo of Bozeman, is running unopposed in the primary. In District No. 3, Republican Sen. Jeff Welborn of Dillon is running against Suzzann Nordwick of Butte and Rob Elwood of Harlowtown. Leonard “Lenny” Williams of Butte is the lone Democrat in the race. In District No. 4, incumbent Republican Jennifer Fielder is vying to keep her seat from Al Dunlap of Saint Regis. All five current commissioners are Republicans. The body that regulates monopoly utilities in the state has been under scrutiny over the last year as it granted significant rate increases to both NorthWestern Energy and Montana-Dakota Utilities. It undertakes a petition this year to consider the effects of climate change on its decisions. Editor’s note: In District No. 3, Democrat Lenny Williams and Republican Rob Elwood did not respond to the survey. In District No. 4, Republicans Jennifer Fielder and Al Dunlap also did not respond to questions. Dunlap sent an email that said the following: “I’m an unofficial candidate based on the fact that I had national real estate business concerns that required my focus immediately following candidacy deadlines. I’m a small business owner looking out for fair rates for everyone for everything.” District No. 2, Republican Kirk Bushman Montana’s largest public utility service has been criticized for embracing more fossil fuels and not doing enough to promote renewables. What is the Montana Public Service Commission’s role in steering Montana’s energy future? The PSC has no role regarding Climate Change. The PSC’s role is to apply regulation that stems from Montana State Law MCA Title 69 and Federal Law -Federal Energy Regulatory Commission (FERC). There are some regulations that promote renewables. But it is not the role of the PSC to make regulations. As a regulator, the Public Service Commission ensures that public utilities get a fair rate of return on their services while ensuring captive consumers are not charged too much for energy. How would you describe the balance between those two interests currently? This balance is currently reasonable, especially if we look to the future. This balance is at great risk from the following three challenges. Inflation, higher interest rates, and ill-conceived federal regulations. A recent press release from the department of energy has announced $6 billion of spending focused on eliminating carbon emissions. The Biden Administration’s “Net Zero” program has plans for building out transmission for wind and solar with a focus on ESG & DEI policies. These policies are a real threat to electricity prices across the state, not just utilities regulated by the PSC, but local co-ops as well. We need our senators, congressmen, and the governor to be involved in this debate at both the state and federal levels Last year, the Public Service Commission approved rate hikes for two power companies in Montana over public outcry the increases were historic and unsustainable for residents and small businesses. Do you agree with the PSC’s decisions? Why or why not? Perhaps the PSC could have taken steps to reduce the size of the rate increases, but the PSC does not have the authority to arbitrarily deny cost recovery. The law supports the utility to choose what kind of generation assets to add to the portfolio. It does this using historical data and forecasting models that are publicly reviewed by the Commission. State and federal regulations dictate the cost recovery of additional transmission and generation. I think the PSC could do a better job implementing federal regulations regarding wind and solar. If you could get one thing accomplished during your tenure on the PSC, what would it be? I would like the citizens of Montana to benefit from Montana’s resources. The utility generation portfolio should be able to provide a surplus of power that can be marketed to the industrial sector and other states with the benefits of these sales used to relieve the cost to Montana citizens. Should Montana’s PSC be made up of elected politicians or should it be run by appointed utility experts? I think commissioners should be elected. I believe appointed commissioners are still susceptible to politics but are not accountable to the voters. District No. 2, Republican Brad Molnar Montana’s largest public utility service has been criticized for embracing more fossil fuels and not doing enough to promote renewables. What is the Montana Public Service Commission’s role in steering Montana’s energy future? Montana statute does not allow for externalities being considered by the Mt PSC. So, we are not allowed to “promote” one form of generation/fuel over another. Each has to prove their worth, in a contested proceeding, to provide an affordable and reliable outcome. As a regulator, the Public Service Commission ensures that public utilities get a fair rate of return on their services while ensuring captive consumers are not charged too much for energy. How would you describe the balance between those two interests currently? The balance is often skewed. What is often viewed as justified, legal outcomes are too often overturned by the courts as they inject their personal biases into the equation. Even simple things like who will pay for the interconnection costs on the grid. The PSC said it should be the entity that wants to connect. The courts shifted it to NWE customers. As the incentives for renewables change the costs are magnified. This specific one was known as the Sun case. Last year, the Public Service Commission approved rate hikes for two power companies in Montana over public outcry the increases were historic and unsustainable for residents and small businesses. Do you agree with the PSC’s decisions? Why or why not? Yes, the less than a dollar-a-day increase (NWE 24%) (In a separate case MDU went up 7%) were historic and there was “outcry” from Democratic front groups. None have challenged the arithmetic forming the final ruling. That case was a year in the making. I cannot adequately answer here. More than happy for an in-depth discussion. Or perhaps you could invite the Consumer Counsel as they signed off on the final outcome. Across the West many are experiencing similar and greater rate increases due to federal, state legislatures, and court, interventions into the energy market. Critics should do so with specific facts and figures. In 2001 I drafted the legislation that stopped the advancement of the economic juggernaut created in part by the collapse of the California energy market and the illegal manipulations of Enron (HB 640). In 2009 I worked with the legislature to kill an environmentalist proposal to force the co-ops under the PSC to adjudicate conservation goals with huge penalties for missing the goals (HB 641). In 2010 I reversed a rate computation (inclined block model) to increase electricity bills on low- and middle-income Montanans. Consumer protection is not accomplished with one vote. It comes from being vigilant before an item becomes imbedded then coming forward in a rate case as a mandated outcome. While the PSC may deserve some criticism, those responsible for the various inputs that caused the rate increases they now complain about should also be held up for scrutiny. If you could get one thing accomplished during your tenure on the PSC, what would it be? A reduced dependence on utility reported interplay concerning their regional market generation pursuits. Should Montana’s PSC be made up of elected politicians or should it be run by appointed utility experts? The majority of states use appointed commissioners. And like Texas they are in a constant state of flux and failure. When one is appointed, his resignation is taken for when a political debt must be paid. The utilities often donate to both gubernatorial candidates then pick their own regulators. Many commissioners from those states openly note that political donations and nepotism played a major role in their appointments. Any “energy expert” may run for the Commission. During the 2021 session, SB 160 tried to mandate appointed commissioners. I played a major role in its defeat. See video of floor debate. It received 16 votes. District No. 2, Democrat Susan Bilo Montana’s largest public utility service has been criticized for embracing more fossil fuels and not doing enough to promote renewables. What is the Montana Public Service Commission’s role in steering Montana’s energy future? The PSC has a significant role in determining what energy-producing projects are built and operated in Montana. The fuel used has a direct impact on ratepayer costs as well as societal and ecosystem health. The PSC’s role is to ensure utilities provide adequate service to customers at “reasonable rates.” Reasonable rates can be achieved by implementing efficiency measures and building utility-scale wind and solar electric power plants. They are cost-competitive and often cheaper than fossil fuel-powered plants, which contribute to climate change. Renewable fuels are clean and free. And, battery storage makes these systems reliable with electricity available when needed. I believe the PSC’s role is to give fair consideration of the pros and cons of multiple energy sources and be open to the multiple benefits of renewable energy. This can be accomplished three ways. The PSC can 1. give renewables fair consideration during oversight of utility long-term plan development, 2. develop fair and reasonable Qualifying Facility contract terms that attract businesses that want to build renewable energy projects, and 3. consider participation in western organized energy markets for trading and buying cheaper wholesale electricity that often comes from southwestern U.S. photovoltaic, concentrating solar, and geothermal electric power plants. As a regulator, the Public Service Commission ensures that public utilities get a fair rate of return on their services while ensuring captive consumers are not charged too much for energy. How would you describe the balance between those two interests currently? It appears to me an imbalance currently exists, and that is one reason I am running for the PSC. Many Montanans want more renewable energy integrated into our energy infrastructure because they know it is cheaper and cleaner than fossil fuels. Energy has become partisan and contentious. It appears current commissioners tend to side with the utilities that want to continue investing in coal and mainly build new natural gas-fueled electric power plants. At least one utility refuses to acknowledge that there are strategies used by other utilities that they can adopt for integrating renewables and that renewable energy can be cost-effectively stored in batteries making it reliable and available when needed – including during peak demand. An imbalance will remain as long as the PSC ignores climate impacts and the multiple benefits of renewable energy as it regulates utilities. Last year, the Public Service Commission approved rate hikes for two power companies in Montana over public outcry the increases were historic and unsustainable for residents and small businesses. Do you agree with the PSC’s decisions? Why or why not? I disagree with the PSC’s decisions because I know there are strategies utilities can implement to lower energy use as well as generate or provide and distribute that energy in a more affordable manner. The first step is energy efficiency. Utilities can expand their efficiency rebates and better market them to create awareness of their existence. This will lead to reduced energy use and lower bills. Montana’s utility grid must be modernized for efficiency as well as reliability. Upgrades can include micro-grids that reduce line losses and prevent widespread power outages. Smart-grid technologies give ratepayers control over when and how they use energy to reduce peak demand and costs. Utilities often want to own facilities, but if they are unwilling to consider the most cost-effective and clean options, the PSC can invite competition by developing fair and reasonable Qualifying Facility contract terms that attract businesses that want to build cost-effective renewable energy projects. The PSC must also consider the benefits of participating in western organized energy markets for trading and buying cheaper wholesale electricity. I am unaware of these measures being considered to keep energy prices affordable. The PSC must ensure that long-term resource plans proactively include these efficiency and affordability measures and direct the utilities to follow the plan. If you could get one thing accomplished during your tenure on the PSC, what would it be? My most important accomplishment would be to spearhead the effort of the PSC considering climate impacts in its regulatory decision-making. For Commissioners and PSC staff, I would organize an expert presentation on the Montana Climate Assessment, Greater Yellowstone Climate Assessment, and the Climate Change and Human Health in Montana report. Should Montana’s PSC be made up of elected politicians or should it be run by appointed utility experts? Neither. I think the best mix would be governor-appointed representatives from specific entities that typically provide input to long-term resource plans and testify at customer class and rate making hearings. The PSC staff includes attorneys, engineers, economists, and rate analysts that would support appointed commissioners. The specific entities could represent fossil fuel and renewable energy companies, citizens, businesses, institutions, and a variety of non-profits. District No. 3, Republican Suzzann Nordwick [END] --- [1] Url: https://dailymontanan.com/2024/05/24/getting-to-know-montana-public-service-commissioner-candidates/ Published and (C) by Daily Montanan Content appears here under this condition or license: Creative Commons CC BY-NC-ND 4.0. via Magical.Fish Gopher News Feeds: gopher://magical.fish/1/feeds/news/montanan/