A group of consumer advocates gathered today in Helena to express their concerns about NorthWestern Energy's proposed default supply portfolio.  The groups criticized the process by which NorthWestern Energy, formerly Montana Power Co., solicited and selected contracts to supply electricity for nearly 300,000 consumers over the next five years and called on the Public Service Commission to reject the current proposal.  MontPIRG characterized NorthWestern's bidding process as flawed and politically charged and that the flawed process resulted in poor outcomes for Montana consumers.

"Montana families and small businesses deserve the cheapest, cleanest electricity available, but NorthWestern's proposal falls short of that mark.  This proposal relies too heavily on expensive and dirty new fossil fuel-fired power plants while ignoring cheaper and cleaner alternatives," said David Ponder, Executive Director for the Montana Public Interest Research Group (MontPIRG).

NorthWestern is proposing to buy 50 percent of the portfolio's power from existing plants' about 20 percent from spot-market buys or short-term purchases, and the remainder from new power plans, under long-term contracts.  The new supply contracts drew the greatest criticism of the consumer groups.

"The portfolio is full of sweetheart deals and secret contracts," continues Ponder.  "There is no way the Public Service Commission can determine these contracts were prudently incurred because the utility ignored accepted industry standards for open, competitive bids and least cost-planning.  The energy sources were selectively chosen by NorthWestern without allowing any other energy sources to bid against them.  a disgrace.  Apparently, the process for choosing contracts had more to do contracts had more to do with political influence than prudence."

Under the current plan residential customers and small businesses face at least a 20% rate hike, and irrigators a 32% rate hike, over the next two years.  MontPIRG called on the Public Service Commission to direct the utility to rebid the contracts in a more business-like and disciplined fashion.

"The Public Service Commission should lay down the rules, indicate the criteria it wants to be used as projects are evaluated, and emphatically state that passing economic plums around to politically connected folks or the utility's own owners will not be tolerated.  The should further make it clear that the utility should acquire the cheapest and cleanest resources available," said Ponder.

In the next two weeks, the Public Service Commission will hold hearings in 16 Montana towns to seeking public comment on NorthWestern's proposed default supply portfolio.  The groups encouraged the public to attend and voice their concerns.  also attending Thursday's press conference were Clyde Daily of AARP-Montana and Archie Nunn of the Montana Senior Citizen's Association.