Buy Back the Dams

Dam Cheap Power

For Immediate Release
November 19, 2001

For More Information Contact
David Ponder, MontPIRG
406-243-2908, office; 406-949-0664, mobile


At a press conference to announce a statewide ballot initiative to purchase hydroelectric facilities previously owned by Montana Power the Montana Public Interest Research Group released an analysis of the costs of such a purchase.  The group found that the price per megawatt hour to purchase the dams is well below current market rates.

"Acquiring the dams would be a bargain and could save Montanans millions of dollars a year," said David Ponder, Executive Director of MontPIRG.  
The analysis calculated the price per megawatt of acquiring and operating the hydroelectric facilities, now owned by Pennsylvania Power and Light (PPL), under three price scenarios. MontPIRG found that electricity from those facilities would cost between $11.17 and $13.79 per megawatt hour compared to the current market rates of up to $35 per megawatt hour, a cost savings of up to 39%.

The high price scenario calculates the price per megawatt hour based on the "market value" of the assets, as determined by the Montana Department of Revenue (MTDOR), during the volatile 2000 market year. The low price scenario calculates the price based on the listed value of the assets as reported by MPC to the PSC in 1998. The mid price scenario examines the estimated purchase price PPL paid MPC for the assets.

"Dedicating the hydroelectric dams to small customers would meet a significant portion of total electricity demand at a price people can afford," concluded Ponder.