Grid Grift
Nobody understands the blather Northwestern Energy is spouting to explain its plans for Colstrip, a subsidiary, customer credits, and … perhaps … bivationary falvebarms.
Montana PSC- A Spy vs Spy Cartoon (You Pay For)
Guest Editorial By Mary Moe
Ordinarily I‘d say, ”You can‘t make this stuff up.“ But with Montana‘s Public Service Commission, over-the-topness — and making stuff up — has become de rigeur.
Remember the Koopman controversy five years ago? “Someone” at the PSC acquired Commissioner Roger Koopman’s work emails, among which were personal communications with his family, and leaked them to a right-wing news website. Koopman sued the PSC for $2.2 million for defaming him and invading his family’s privacy.
Why was Koopman using a public email account for personal communications? Nobody asked.
And who leaked the emails? Ah, the bobbing and weaving. Although the website publisher embraced Montanans’ right to know when it came to posting the emails, he eschewed our right to know who leaked them
The records request suggested Commissioner Randy Pinocci was the leaker, but apparently his cell phone suffered a crickets infestation. And when PSC Chairman Brad Johnson was asked why he signed the request, he said “someone” must have used his stamp. Sheesh.
Ultimately, the PSC and Koopman settled the claim out of court for $155,000. Your taxes and mine picked up the tab.
In 2023, Commissioner Pinocci was back in the headlines. After an altercation with a renter’s brother, Pinocci was charged with disorderly conduct — specifically, challenging to fight or fighting the brother by getting in his face, bumping chests, and yelling.
Pinocci’s defense? He’s too chubby to chest-bump. Criminy
And this year, the Molnar melodrama. Having served on the PSC earlier in the century, Brad Molnar seemed like a good choice for chairman upon re-election. Minds and hearts changed quickly. In July, he himself announced that the PSC was investigating him for professional misconduct.
His response? If you don‘t like me, don‘t re-elect me. “[People] knew what they were getting when they got me … a redneck from Laurel that’ll stand up and fight back.”
Had he sexually harassed Commissioner Annie Bukacek? A reporter asked. “My wife is a hottie,” he responded, displaying her photograph. “I don’t know why I would.” Egad.
And now, what we hope is rock bottom: redneck retribution. Ousted from leadership last week, Molnar is fighting back. He filed an ethics complaint against Bukacek, who kept her job as a physician when she assumed her job as a commissioner. Molnar alleges she’s using PSC office equipment to do that medical work. And he can prove it: He’s amassed a ream’s worth of her documents from the PSC trash.
“I’m not a dumpster diver,” he claims. All appearances are to the contrary.
If this were “The Real Housewives of the PSC” or “The Amazing Disgrace,” we might be amused, if not enthralled, by getting to watch this series without subscribing to Pluto TV Reality. But these pension-padders run a government agency promising Montanans “continued access to utility services that are affordable, reliable, and sustainable for the long-term [sic].” That access has never been more imperiled.
Commissioners, you should be ensuring our investments in clean energy keep us on the path toward low-cost, renewable, and sustainable power. You’re not. While you sneak in and out of copy rooms and email servers and trash bins, NorthWestern Energy’s investments in renewable energy are steadily declining.
You should be ensuring that NWE makes sound investments, both monetarily and environmentally. You’re not. While you chest-bump and -thump, our utility monopoly has built a methane-fired power plant with alarming cost overruns and is throwing good money after bad at the nation’s dirtiest coal plant.
You should be protecting us from a monopoly more interested in increasing corporate profits than decreasing our utility costs. You’re not. You approved a 28% electricity rate increase last year, and should be battling an additional 26% increase this year instead of collecting ammo on one another.
You should be protecting us from further risky ventures — like investing in data centers that will wreak havoc on our water supply, our power grid, and our rates. You’re not. Let me guess your excuse: Having a hottie for a spouse is too distracting?
Enough spy vs. spy. Do the job we elected you to do … and ONLY that job.
Mary Moe is an educator, former Montana Legislator and former City Commissioner in Great Falls. Her editorials appear regularly in Lee Papers.
Here We Go Again
This editorial was sent to newspapers across Montana.
What is it about top executives in monopoly utilities that makes them want to play cowboy capitalists? Case in point is NorthWestern Energy’s plan to provide power to gigantic data centers. With great ballyhoo across the state, NorthWestern Energy announced it signed a “letter of intent” to provide as much as 1,000 megawatts of electricity to Quantica Infrastructure for its proposed data center. That’s more than their current total electric load of 760 megawatts. That amount of power would use all of NorthWestern’s existing generation capacity.
You would think that this monopoly business and its top brass would be satisfied with its current situation. In exchange for providing power to its current customer base (that’s us), they receive a virtual guarantee they will not lose their investment for any reason. They also get a guaranteed rate of return on their investments that hovers around 10%. That is for the entire life of the facility regardless of economic conditions or competition.
In exchange for running this sleepy little monopoly, which is headquartered in Sioux Falls, South Dakota, their current CEO, Brian Bird, received $4.8 million in 2024. The 2023 corporate proxy statement lists Board Chair Linda Sullivan receiving an annual retainer of $150,000 plus 3,750 shares of stock. Current price per share is around $55. For comparison, the manager of Flathead Electric Cooperative, the largest public power provider in Montana, receives just under $550,000 per year.
But now NorthWestern wants to take on a lot of risk building new facilities and making investments betting on the latest fashion trend to come down the pike: data centers. And if they miss their bet, we all suffer the consequences. Maybe the business booster crowd needs a history lesson.
In 1971, the Bureau of Reclamation released the North Central Power Study. The plan called for massive coal development on the northern plains. In Montana alone, they envisioned 17 coal plants roughly the size of the Colstrip plants. Of course, the Montana Power Company (NorthWestern Energy’s predecessor) and other corporate interests in Montana were all for it. For them, the environmental degradation and negative impact on existing ag producers and others were worth the cost.
But ranchers, Native tribes, and many others were not convinced. They organized to oppose the massive development being proposed by the coal and utility industries. In the end, only four plants were built and owned by a consortium of utilities. It also spawned two of the most powerful citizen groups in the state: The Montana Environmental Information Center and Northern Plains Resource Council. To this day, they remain actively engaged in protecting Montana’s people and environment from corporate interests seeking a quick dollar.
Fast forward to 1997 and the electric deregulation fiasco. Management of the Montana Power Company became bored with the stodgy old regulated utility business. So they decided to sell off the power plants and power lines they owned. They took all of that money and dumped it into Touch America, a fledgling telecommunications company. In short order, Touch America went bankrupt and all of that money evaporated. Montana suffered through years of economic chaos. We went from some of the lowest customer rates in the country to some of the highest rates in the Northwest. NorthWestern is now proposing significant rate increases on a regular basis, while still trying to acquire worn out, expensive coal plants in the Colstrip complex.
In the emerging world of huge data centers serving everything from artificial intelligence to cryptocurrency ponzi schemes, NorthWestern sees a new shiny object on the horizon: huge electric loads required by data centers. Unfortunately, this confronts us when the national government is run by delusional ideologues. Here in Montana, billionaire tech moguls and far-right legislators are running state government. The Public Service Commission, which should be protecting us from the greed of corporate CEOs, looks more like the clown show in a three-ring circus.
Strap in and hold onto your wallets, folks. It’s gonna be a wild ride.
Ken Toole served on the Public Service Commission from 2007 to 2011. He was a member of the Senate Energy and Telecommunications Committee, serving as its chairman in 2005. He served as the vice chair of the Senate Taxation Committee in 2005. He was also the President of The Policy Institute, a private group which conducted research on economic issues including energy and taxation.
Hey NorthWestern Energy, What’s All This Going to Cost Us?
A Little Background
Until the early 2000s Montana Power Company had very low rates and a reliable system. In the mid-1990s they began to promote “deregulation” which allowed them to sell all of their generation facilities. With an intense lobbying effort, and over the objections of consumer advocates, in 1997 the Republican legislature passed a bill which allowed Montana Power to sell. Pennsylvania Power bought the hydro system and the coal plants, while a small South Dakota company, NorthWestern Energy, purchased the lines and wires in Montana. Chaos ensued. Rates climbed rapidly, businesses closed, and Montana ended up paying the highest electric rates in the Northwest.
By 2007 Republicans in the Legislature finally admitted that the “deregulation experiment” was a dismal failure and passed a law allowing Northwestern to own generation assets. Northwestern began buying back the plants that Pennsylvania Power purchased, paying premium prices, which of course, were added to their rates and into our electric bills.
Recently NorthWestern Energy announced several moves that are part of the continuing trend of rebuilding a corporate and regulatory structure that existed before deregulation. Unfortunately, NorthWestern is forgoing the opportunity to remake the utility with modern clean resources, choosing instead to bet the farm on antiquated fossil fuel technology which is both dirty and expensive.
Betting on Dirty, Expensive Coal
Last week NorthWestern announced that it is going to buy out a 370 megawatt share of the Colstrip complex from Puget Sound Energy. NorthWestern says they will get the plant at “no cost.” Of course they don’t mention the plant is in dire need of expensive upgrades which customers will pay for. Nor do they mention that they will be assuming significant liability for environmental clean up and compliance which customers will also pay for. Two and one half years ago, NorthWestern reached a similar deal with Avista for a 222 megawatt share.
NorthWestern and Republican politicians say that coal provides a stable, reliable source of power for Montana. The truth is they are far from stable or reliable. During the cold snap of January 2024, Colstrip went down. In July when the heat wave hit Montana, Colstrip went down again. The truth is these are antiquated plants and keeping them online is both challenging and expensive. Of course ratepayers assume those costs in the end.
The Laurel Gas Plant
Following years of opposition and litigation, a new natural gas plant along the Yellowstone River came online in March. This is a very large (175 megawatts) plant designed to come online to meet periods of peak demand. That means the rest of the time it sits idle, not producing any revenue. The cost of the plant is estimated to be over $250 million which again will go into customer rates and generate a generous rate of return (profit) for NorthWestern stockholders.
Purchasing Energy West
NorthWest Energy announced that it is purchasing Energy West, Great Falls’ local natural gas distribution company for $39 million. The transaction will have to be approved by the Montana Public Service Commission. NorthWestern expects completion of the deal in early 2025. In a press release, NorthWestern said they do not plan on raising customer rates as part of the deal.
Energy West currently has about 33,000 customers in the Great Falls area, Cut Bank and West Yellowstone. It is owned by Hope Utilities of West Virginia. Hope Utilities is a holding company that owns utilities in nine states, including Montana. They have a total of 227,000 customers (which includes a couple of small water and wastewater utilities). NorthWestern has about 212,000 customers in Montana. Energy West rates are currently lower than NorthWestern’s.
NorthWestern Energy Rate Impacts on Customers
All of this buying and building is expensive. . .and it is showing up in our rates. In October of last year, the Republican Public Service Commission approved a 28% increase to residential customer rates (large customers did not have as large an increase). Last month NorthWestern said it is filing another request with the Public Service Commission to increase rates. This time around they are proposing to increase rates by another $21.9 million or 8.28%. In this case, Northwestern is proposing a “balancing account” which allows them to collect money from ratepayers for expenses which have not been incurred yet. Estimates of those expenses run as high as $2 billion (that’s with a B).
How All Of This Makes Money for NorthWestern Energy
Utilities make money in two ways. First is by increasing sales or customer base which gives them an incentive to purchase Energy West. The other is by making capital investments like building and upgrading plants. Once accepted by the PSC, the utility receives a guaranteed “rate of return” of somewhere around 10% for the life of the plant.
And speaking of making money, here are the top three NorthWestern executive salaries per year reported at the end of 2022.
Bob Rowe, CEO (Retired at the end of 2022) $3,375,572
Brian Bird,COO (Replaced Bob Rowe) $2,674,811
Heather Graham, Chief Legal counsel $1,264,471
Thank you to The Daily Montanan, Montana Free Press and The Electric for their reporting on these issues.
Randy, Randy, Randy. What Now??
Public Service Commissioner Randy Pinocci has had a lien filed on his property by the Braden Tract Sewer Association and Braden Tract Water Fund for non-payment of bills in the amount of $1,720. In addition, the districts are claiming Pinocci is responsible for moving a fence which is encroaching on its property at an estimated cost of $5,500.
Perhaps the greatest irony in this chapter of the long, sad saga of Pinocci’s behavior in public office is that, as a Public Service Commissioner, Pinocci is responsible for regulating public utilities similar to these two small local utilities. One of the biggest problems these businesses face is deadbeats not paying their bills. When that happens, other ratepayers pick up the tab. Pinocci either doesn’t understand that or he doesn’t care. Probably a bit of both.
As the Public Service Commissioner representing PSC District #1, which includes Cascade County, Pinocci earns an annual salary of $111,179. That does not include benefits like state retirement and health insurance. His wife, Svetlana, works in the elections office. She gets a good salary and county benefits. In addition, Pinocci has real estate appraised at a total value of $1,006,303. You would think he can afford to pay his water and sewer bills. . . like the rest of us. But Randy isn’t like the rest of us.
Pinocci seems to want to play politics more than do his job with the PSC. In the last election, he ran for Lieutenant Governor drawing his big paycheck from you and me the whole time. Then there is the fact that he was prosecuted for intimidating witnesses in a dispute over one of his rental properties last October. https://wtf406.com/2023/10/more-republican-police-blotter-pinocci-arrested-again/
A few weeks before that, he was arrested on a warrant for failure to appear. When he is not being arrested or prosecuted, he is galavanting around the state promoting bizarre conspiracy theories.
Thanks, in part, to an organized effort to get Democrats to “cross over” and vote in the Republican Primary here in Cascade County, voters got rid of some of the far right leaders in their party. Legislators Steven Galloway and Lola Sheldon-Galloway lost. County Commissioner Rae Grulkowski also was turned away by the voters (though the rumor mill is predicting she will be hired by Clerk and Recorder Sandra Merchant). Both Pinocci and Merchant also lost their bids to be elected as Republican Party precinct people. Maybe there’s some hope for sanity in the local Republican Party.
Pinocci’s term on the Public Service Commission ends in 2026. Who knows what he will run for next. Whatever it is, we can only hope he is defeated.
Pinocci Dodges Two Felonies, Still A Corrupt Asshole
We’ve talked about Randy Pinocci a lot on this blog. If you aren’t familiar, suffice it to say he’s Northwestern Energy’s bestest pal, and he really loves raising your utility bills. His greatest hits include napping during public meetings, acting like a slumlord, and most recently committing crimes via text message.
Montana Republicans get arrested a lot. So don’t be embarrassed if you need a refresher on Pinocci’s wrap sheet. Pinnoci initially had a dispute with a tenant, and he received disorderly conduct charges. Pinocci failed to appear in court, ultimately resulting in Pinocci being arrested at Home Depot due to an active warrant.
In another keen display of believing he’s above the law, Pinocci then tried to compel a witness (who also appears to have been his tenant) to change their statements to police. Pinocci allegedly refused to refund the witnesses deposit, and even stated in writing that “you’re going to have to recant your testimony with the sheriff’s department.” He got two felony counts of witness tampering for that one, but maybe Pinocci’s onto something here. He can seemingly intimidate witnesses in writing, and the county will drop all but the smallest charges. Despite what appears to be literal written evidence of witness tampering, somehow the county was compelled to “take another look” at the case. Pinocci has to pay a mere $200, and he gets a six-month deferred prosecution agreement. As long as he behaves for six months, then the two felony charges will go away. Maybe being a Public Service Commissioner does come with perks?
Read the full story and see the court documents here: https://dailymontanan.com/2024/04/12/randy-pinocci-pleads-no-contest-to-misdemeanor-felonies-dropped/