NorthWestern Energy’s resource plan gets criticisms for ignoring data centers

Members of the public and a coalition of advocacy groups want NorthWestern Energy’s long-term plan for power to include more renewable energy and account for data centers’ impacts on their pocketbooks.

They also want the utility’s Integrated Resource Plan, a projection of how it will meet energy needs the next 20 years, to address climate change head on.

Montanans and the group of advocates and a business represented by Earthjustice shared those concerns with the Montana Public Service Commission at a recent public meeting and in a 134-page review of the plan filed with the agency.

At a recent meeting, PSC chief legal counsel Amanda Webster said the agency does not have authority to approve or reject the plan, but it may identify deficiencies.

Commissioner Annie Bukacek said the PSC anticipates taking up the plan in mid August.

At a meeting, Amy Cilimburg, with Climate Smart Missoula, said the plan mentions climate change just once as a response to a stakeholder comment even though the planet is facing “the hottest conditions ever.”

She said a heat wave in Europe in June led to the deaths of 10,000 people — France counted an excess mortality rate of 36%, according to the Guardian.

Cilimburg said scientists associate  burning of fossil fuels with extreme weather, but the plan continues to call for fossil fuels.

“Can we please listen to the climate experts?” Climiburg said.

Many people worry data centers will increase their power bills, which are already going up.

Ashley Fisher, of Helena, said a study by the University of Michigan shows examples of the way data centers drive up costs and places where “prices have doubled.”

“We need to take a really serious look about how this is going to affect Montanans who are already having a hard time being able to afford the places that they live,” Fisher said.

The report from Michigan says residential electricity rates increased by 25% since the construction of one data center in the state in 2017. It said rates in one city in Louisiana jumped 39% for residential customers.

The report says utility companies often pass on infrastructure costs to residents and small businesses.

NorthWestern Energy has said data centers “must pay their fair share of the transmission, generation and distribution upgrades they require.”

The filing from Earthjustice said NorthWestern Energy is under negotiations to at least double and potentially increase by tenfold its daily retail load to serve data centers.

But the groups said NorthWestern doesn’t accurately project the demand in its plan, and it also doesn’t disclose enough information about its agreements with data center developers.

The coalition is made up of 16 parties including Bridger Bowl Ski Area, Helena Interfaith Climate Advocates, NW Energy Coalition, 350 Montana, and others.

Energy watchdog Montana Environmental Information Center has said ensuring Montanans aren’t picking up the tab for data centers requires guarantees by the PSC and consumer protection legislation — draft bills are in the works for the 2027 session.

Shannon James, with MEIC, raised concerns about the process, not just the plan. MEIC is part of the coalition with Earthjustice.

James said the PSC chose to have only two public meetings, both in Helena, “limiting public participation in a process that will shape Montana’s energy future for decades.”

A PSC spokesperson earlier said the commission is facing a shortened period to review the utility’s plan this year, and staff weren’t able to travel to multiple districts this year due to increased workloads.

As for the plan, James said it presents nuclear power as “a cornerstone of Montana’s energy future” even though small modular reactors remain “commercially unproven.”

“NorthWestern’s planning choices appear driven less by what is most affordable for Montana families and businesses than by investments that expand the company’s rate base and increase returns for shareholders,” James said.

The filing from Earthjustice noted a similar concern.

It said NorthWestern Energy’s plan suppresses clean energy alternatives, such as by putting arbitrary limits on battery storage, used to store electricity from renewable sources.

“NorthWestern’s decision to arbitrarily cap these resources is yet another way the utility is putting its finger on the scale in favor of fossil fuels at the expense of Montana’s environment,” the filing says.

The filing also said the plan ignores NorthWestern Energy’s proposed merger with Black Hills Corp.

The proposal is pending with the PSC, but the filing notes the merger could accelerate the utility’s capacity, which has implications for customers if data centers come onto the grid.

“This pending merger has the potential to dramatically influence NorthWestern’s future resource adequacy and load forecasts,” the groups said. “As a result, the utility’s failure to account for the possibility of a merger when drafting the 2026 IRP is a significant oversight.”

NorthWestern Energy could not be reached for additional comment in time for this story.