Electricity pylons (Photo by Getty Images).
After closed-door meetings by NorthWestern Energy and allegations it isn’t being transparent as it plans for future energy needs, the Montana Public Service Commission voted Tuesday to open an investigation into a committee of the monopoly utility.
“Transparency seems to be a real issue with the voters,” said Commissioner Randy Pinocci, who supported the investigation and said Montana should be an example to other states. ” … You could imagine that if the public wanted changes or meetings concerning the future of NorthWestern Energy and NorthWestern was told they couldn’t be part of the meetings, that would be unacceptable.”
The investigation essentially allows the PSC to collect information and materials about the company’s energy advisory committee from NorthWestern Energy and post it in its public documents portal, said the Public Service Commission’s David Sanders.
“We are going to use that tool to find out exactly what is going on at these ETAC meetings and to open up the process,” said Sanders, executive director at the agency, of the Electric Technical Advisory Committee. ” … The people of Montana have the right to view what gets covered.”
Earlier this summer, three renewable energy groups raised questions about whether NorthWestern Energy was legally running its Electric Technical Advisory Committee, which makes recommendations to the public utility about resource planning for the future.
Critics say the utility relies too heavily on energy sources that are both more costly to customers and more polluting, and it could use more affordable and cleaner options.
In criticisms this summer, the conservation groups said NorthWestern was closing its meetings to the public without adequate justification, and it hadn’t chosen members who represent broad interests, such as advocates for low-income customers and small energy developers.
Tuesday, the Montana Environmental Information Center’s Nick Fitzmaurice said NorthWestern had reinstated a website with information about the committee’s work since the Public Service Commission sent the utility a letter asking it to address the questions raised by MEIC and the other conservation groups.
However, Fitzmaurice, energy transition engineer, also said NorthWestern had been both “defensive and unapologetic” since the Public Service Commission asked the utility to answer questions.
“It’s really important for all of us in Montana that the utility, NorthWestern Energy, is engaging in transparent and really rigorous planning as they put together the next 20-year Integrated Resource Plan,” Fitzmaurice said.
In its response to the PSC, the utility defended its selection of committee members and said it’s allowed to close meetings when necessary.
But the Public Service Commission has the authority to investigate utility rules, practices and services, and Sanders said its bias is on the side of openness and transparency.
An agency staff report recommended the PSC refrain from interfering in the selection of committee members given the requirement for “broad based” membership is not defined in statute or commission rules.
However, the staff report from analyst Michael Dalton also said concerns about the lack of transparency appear to have merit, and commissioners could either launch an investigation or proceed with informal discussions to address them.
“All three ETAC meetings that NorthWestern has held during this planning cycle have been closed to the public, and prior to last week, information contained in the meeting agendas and PowerPoint presentations associated with ETAC meetings were not publicly available,” Dalton said.
A Sept. 18 meeting of the committee will be open to to the public, but in a “listen only” capacity, according to information posted on NorthWestern Energy’s website.
At the meeting Tuesday, PSC President James Brown moved to open the investigation, and Pinocci seconded the motion.
In questioning an agency staff attorney at the meeting, Brown confirmed that state statute requires the advisory committee, its process is created by the legislature, and that a select legislative committee is considering changes (Brown disclosed he’s a member of the select committee).
Current rules require open meetings whenever possible, but they also allow committee meetings to be closed when necessary, for instance, to talk about proprietary information. Brown said the ability of NorthWestern to close the meetings is a question at the legislature.
However, Brown said proceeding with the investigation makes sense because it will mean the Public Service Commission can resolve its concerns about transparency more quickly than if it moves ahead only informally.
“I think it fully satisfies what we’re required to do as a commission, which is to make sure that regulated utilities are operating in a manner, as we discussed, that is transparent to the public, particularly when that utility which we are discussing is a monopoly,” Brown said.
Sanders said the agency would move quickly in requesting and posting information from NorthWestern Energy.
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