PSC rule change will mean pricier electricity
The Montana Public Service Commission (PSC) is considering a rule change regarding electricity that the utilities must buy from small producers (primarily wind) that will lead to more expensive electricity for Montana consumers. Without getting too far into the complexities, Montana has a law on the books based after the federal PURPA legislation that requires utilities (i.e. NorthWestern Energy) to purchase up to 3 mW from small producers called "qualifying facilities." The rule change would increase that cap up to 10 mW to accommodate for larger wind projects.
Why is this a problem? Because NorthWestern's electricity supply is becoming increasingly unstable as they are backed into more and more wind generation. You see, wind-generated electricity fluctuates wildly from hour to hour (and even minute to minute) which forces the utility to buy increasing amounts of extra power to make up for the difference.
Look at it this way, if all that wind energy wasn't included in the portfolio, the utility would not need to buy the extra, backup power. In essence, the utility is having to buy twice for power that is only used by the consumer once. According to a document obtained from the PSC, since 2002 NorthWestern has increased by more than $10 million per year the amount of backup power it needs to accommodate the extra wind energy in its system, or 72%. These are costs that are recovered (by law) from the electricity consumer. (And here we've been taught that only deregulation increases electricity costs!)
And the numbers included in the document do not anticipate the extra power that will come into the system if the qualifying facilities cap is increased to 10 mW.
What's really going on here is a concerted effort to help small wind energy producers get rich quick on the backs of Montana consumers. Remember, these qualifying facilities do not sign contracts with utilities, they simply supply their power and get paid the top rate.
We do need to make alternative energies like wind power more viable to help reduce our dependence on non-renewable energy, but consumers also have the right to the cheapest available power. In a previous post we discussed how wind power is subsidised, but that's just one of the hidden costs of wind energy. The qualifying facilities boondoggle is yet another example.
Carter
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Reader Comments (5)
This is an unfortunate situation, so clearly the answer to the problem is to elect some reasonable folks to the PSC to get this turned around. Ken Toole is not what I would call reasonable. Had this state NOT had Same Day Voter Registration Ken Toole would NOT be a PSC Commissioner today. Until the GOP wakes up and smells the coffee here, and until we quit shooting ourselves in the foot supporting less than qualified candidates for public office I believe it is reasonable to assume we will see more of the same kind of monkey business at the PSC. Doug Mood is a fine Commissioner, will the GOP get it together enough to help him get re-elected? It's about time we started to learn the lesson that you don't treat your friends like you treat your enemies!
How do you blame sameday voter registration for Ken Toole? I'd blame Mike Taylor - that guy is an idiot. He is a terrible candidate and ran a terrible campaign.
Thanks Jobs, I'll tell you exactly how, Mike lost by about the number of votes that were cast on the Indian Reservations with SDVR. Of course you'd think Mike is undersireable Jobs, you're a democrat!
We're a little off topic, but I'll weigh in on the Taylor/Toole race. It may be coincidental that Taylor lost by the number of votes cast on the reservations (have you really sifted through the data to isolate reservation precinct same-day registration votes?) but coincidence isn't causation.
In the counties that are included in that PSC district, Conrad Burns beat Jon Tester by 1499 votes. I'm with Jobs; Taylor lost because his campaign was flawed.
As a matter of fact I have sifted through the data, and yes, that's where the votes were. Of course you'd agree with Jobs Carter, you're part of the problem the GOP now has, you treat your friends like you'd treat your enemies and as long as you do that you're going to get exactly what you deserve in public office. You might now have liked Mike Taylor but he'd be heck of better choice on the Commission than Commie Ken.....duh!