CLEVELAND, May 5, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today cautioned Montana legislators to be wary of proposals that would allow the state’s main utility—or the state itself—to take ownership of aging coal-fired power stations in eastern Montana.
In a letter to Montana lawmakers, David Schlissel, director of resource planning at IEEFA, said market forces make Colstrip Units 1 and 2 unviable and that “this situation will only get worse the coming years.”
In a commentary posted today on IEEFA.org, Schlissel wrote that the ownership deals being currently discussed for Northwestern Energy or the state itself on Colstrip put ratepayers and taxpayers at risk:
“We’ve found that if NorthWestern Energy were to buy part or all of Colstrip Units 1 and 2, its customers would have to pay higher electricity bills to the tune of at least $207 million to $414 million more than they would if the utility were to buy power from the larger market through 2022. Alternately, the state—taxpayers—would have to subsidize such a deal.
The numbers of course are much bigger the further one looks into the future. The deal would cost ratepayers and/or taxpayers $405 to $810 million if its costs are calculated out to 2030.”
The current owners of Colstrip are Talen Energy and Puget Sound Energy.
Media contact: Karl Cates, [email protected], 917.439.8225
About IEEFA
The Cleveland-based Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy and to reduce dependence on coal and other non-renewable energy resources.
