Schweitzer: Lack of transparency in NorthWestern acquisition process leads to unintended consequences, costs for Montanans

A lack of transparency and available details about the proposed acquisition of NorthWestern Energy by Black Hill Corporation have led Montana Farmers Union to intervene in the proposed acquisition to push for clarity on intentions and questions about farmers and ranchers bearing the costs. Based on the questions MFU leaders have asked and the Commission docket so far, the proposed acquisition is not designed to help the Montana family farmer. It is designed to build a corporate balance sheet large enough to serve the bottomless appetite of multinational data centers.  

The PSC must protect our rural communities, and, at the very least, ensure there are minimum guarantees that agricultural water rights and instream flows won’t be sacrificed for data centers. Everyday ratepayers should not pay a single penny for tech-driven infrastructure upgrades. The Commission must prioritize residential safety and agricultural irrigation over data processing during grid emergencies. And ag operators should not be subject to net-metering caps, so that Montana farmers have the freedom to self-supply their own energy to make sure we’re not over-paying and that we have power when we need it most. 

NorthWestern is selling this acquisition to investors as a way to create a monopoly land bridge that will eat up 20 percent of the lower 48 for geographic control over where data centers will go. NorthWestern has signed Letters of Intent for up to 1,400 MW of new data center load – twice the utility’s current average daily retail load. NWE denies wanting the acquisition for data centers, yet outreach to investors focuses on this acquisition as a necessary step to serve data centers. As in the past, ratepayers are being deceived. 

Are there protections to ensure that Montana homeowners, small businesses, and agriculture will continue to be a priority? Will Montanans have to compete with other states for infrastructure maintenance, and access to generation? Who will pay for the generation and infrastructure for data centers, and will it drive up the cost of electricity? Montana’s energy history could shed some light on our future and shows that the acquisition of NWE by BHC might be a good deal for NWE and BHC shareholders, but it will put Montana ratepayers at risk.  

This acquisition is being promoted by the same cast of characters who promoted electric deregulation in 1997. Then executives from Montana Power, the governor, lobbyists, Union leaders, and many legislators traveled the state touting that deregulating would be good for Montana because it would create competition and would position us to take advantage of the new world of technology. How did that work out for Montana ratepayers? Montana Power sold off assets that ratepayers paid for in utility bills to the highest bidders. We went from having some of the cheapest rates in the region to some of the highest and lost control of our energy and water resources. This experiment lasted for roughly a decade before NWE changed course and used ratepayers to buy back many of the resources Montana power sold. In essence, Montana ratepayers paid for the generating resources for a third time; will we have to do it a fourth time? 

What happened to Montana Power? It transformed into Touch America and used money from selling off Montana resources and generation to invest in telecommunications at the peak of the tech bubble. Telecommunications was the newest buzz word that was promised to make billions as it was the backbone of the new technology at the time. The tech bubble burst and Touch America went broke. Many Montanans lost Montana Power/Touch America pensions and stocks. Gone. 

At the same time, because Montana lost the generation capacity we paid for to out-of-state investors, who sold the generated electricity to the highest bidder, electricity prices spiked – in some cases by 20 times. Manufacturing businesses that had benefited from Montana’s cheap power were forced to close, losing tens of thousands of good paying jobs. One example is Columbia Falls Aluminum Company. Gone. 

Data centers might be the boom of this period, but they could be our next bust. Data centers require first priority for our electricity. Where does it put our small businesses, rural communities, and irrigators who depend on this electricity? Is it worth the risk to once again lose control of our natural resources to another multi-state conglomerate?   

The PSC recently voted 3-2, denying MFU’s request for more information on the data center agreements with NWE. Commissioner Fielder called out MFU by name claiming we are running to “mom and dad” rather than NWE directly for the information. Exactly right! The PSC is paid well and provided a staff of experts, and their job is to protect the public from a monopoly. Commissioner Wellborn said that Molnar’s motion to compel NWE to provide more information had some good ideas but needed some more time to consider unintended consequences.    

Without more transparency through this acquisition process, we have no way to gauge what those unintended consequences might be that rural residents and farmers and ranchers will pay. We cannot allow a distant holding company to treat Montana’s water and power as commodities to be extracted for Wall Street and Silicon Valley. It is time to put Montana farmers first. 

Contact the PSC and ask for more transparency about the acquisition and data centers. 

Walter Schweitzer is President of Montana Farmers Union, a grassroots organization supporting family farmers and ranchers through education, legislation, and cooperation. He ranches near Geyser.