Senate Republicans advance Colstrip bill, which critics say burdens NorthWestern ratepayers [View all]
Despite continued warnings about burdening consumers with Colstrip Power Plant debt, Senate Republicans moved forward Tuesday with a bill shielding NorthWestern Energy from financial losses associated with the troubled plant.
Lawmakers voted 30-19 Tuesday to approve Senate Bill 379, which obligates customers of NorthWestern Energy to paying off the undepreciated book value of the power plant regardless of whether Colstrip Power Plant continues to operate. The bill also provides a formula for determining the customer debt for additional shares, rather than basing the debt on what NorthWestern actually paid for additional ownership.
Simply put, Colstrip Power Plant and NorthWestern’s investment in it are in trouble. Four of the power plant’s other owners, with a 70% majority advantage, face coal power bans in Washington and Oregon starting in 2025.
NorthWestern, which bought into Colstrip in 2007 for $187 million, had originally suggested the power plant would run until 2042, but now says Colstrip will likely close in 2025 without government intervention. Customers still owe a substantial amount of debt for NorthWestern’s Colstrip share, $272.4 million according to the company’s latest annual report to stockholders, down from $407 million when Montana consumers were put on a 33-year payment plan in 2009.
Read more: https://helenair.com/news/state-and-regional/govt-and-politics/senate-republicans-advance-colstrip-bill-which-critics-say-burdens-northwestern-ratepayers/article_51a91319-52d2-5628-a802-d6154ca44e15.html
(Helena Independent Record)
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