VICTORY!!
Buy Back the Dams Initiative Qualifies for the November Election Ballot 7/10/02 - It's official! With several more counties still to report, the Secretary of State has certified 21,031 signatures, enough to place I-145 on the November ballot. Thanks to everyone that helped out!

Read the press release .

Campaign for I-145

For years Montana families enjoyed cheap, clean power from hydroelectric dams on Montana rivers and reservoirs.  As a result of deregulation, the Montana Power Company (MPC) sold off Montana’s hydroelectric dams to Pennsylvania Power and Light (PPL). The electricity generated from these dams is no longer dedicated to Montana.  Instead, it is for sale to the highest bidder.  This summer, Montana consumers face dramatic increases in the price of electricity and Governor Martz is promoting dirty energy development at the expense of our clean air, pristine rivers, lakes and streams, and valuable wildlands.

Solution:
Montana must act to regain control of its native low cost power and put our natural resources to work for the people of Montana. The state Constitution says that Montana’s waters are to be used for the benefit of Montana citizens.  The electricity our waters produce should stay in Montana. This summer, MontPIRG will work to qualify and pass a citizen initiative to acquire Montana’s hydroelectric dams and dedicate the electricity they produce to small customers.

The failure of the Legislature to solve the problems created by deregulation prompted MontPIRG and its allies to look to the citizen initiative process to regain control of Montana’s energy future.

At a November 2001 press conference, MontPIRG joined others in announcing a statewide ballot initiative, the Montana Hydroelectric Security Act, that would create a democratically elected public power authority that would be charged with brining into ownership the hydroelectric facilities previously regulated by the Montana Public Service Commission and implementing energy efficiency and renewable power programs.

I-145 Puts People of Montana In Control
The initiative would create a five member Montana Public Power Commission elected by and accountable to the people of Montana. The Commissioners would be elected from existing public service commission districts and serve four-year terms.  The Commission is charged with conducting a comprehensive analysis in order to determine which dams to buy back.  After determining which dams are in the best condition and are the best deal for consumers the Commission would purchase them at fair market value.  In order to pay for the purchase, the Commission is authorized to issue up to $500 million in revenue bonds.  The bonds would be paid back through the sale of electricity, not by taxpayers.  

Lowers Rates for “Small Customers”
MontPIRG conducted an economic analysis of the purchase of the dams and found that the price per megawatt hour to purchase and operate the dams is well below current market rates.  Buying the dams could save Montanans up to $52 million a year.  The analysis examined the cost of acquiring the dams owned by PPL, prevailing interest rates, and the cost of operating and maintaining the dams.  MontPIRG found that electricity from the dams would cost around $14 per megawatt hour as compared to current market rates of up to $35 per megawatt hour.

Protects Rivers and Water Rights
Out-of-state corporations now own the water rights and recreational lands associated with the dams.  Bringing these rights into public ownership assures the waters of Montana will benefit the people of Montana.  The Montana Department of Natural Resources and Conservation did an analysis to determine what would happen if the out-of-state owners decided to use all of the water which they owned the rights to.  The estimate was frightening. In a drought situation, nearly a quarter of a million acres of irrigated agriculture would be shut down, costing millions of dollars for Montana agricultural producers.

I-145 however would bring approximately 36,000 acres of land into public ownership.  Many of these acres are river and lake shoreline, recreational jewels, where Montanans have fished, hunted, boated, camped, and floated for generations.
 
Local Government Not Affected
Many communities, like Great Falls, benefit from the property tax revenue the hydroelectric dams generate.  In 1998, Cascade County received more than $3 million in property taxes from the dams on the Missouri river.  Well aware of the potential impact to local schools districts, the initiative specifically provides for reimbursement of lost revenue for local governments.

Investments in Conservation and Renewable Energy
The Commission is further authorized to make investments in renewable energy development and conservation.  Such investments will yield cleaner, smarter ways of producing and using energy that will save consumers money and reduce harmful pollution.

Citizen’s Fighting Back
With energy policy at the forefront of the public policy agenda MontPIRG joined with community and church groups, organized labor, conservation, consumer and agricultural interests to promote clean and affordable energy alternatives.  During the 2001 Legislative session the coalition drafted guiding principals for policy makers, testified before Legislative Committees and the Governor’s Energy Advisory Council, and generated media attention highlighting the need for clean and affordable energy.  
 
Already endorsing the initiative are State Senator Ken Toole, former Commerce Director and Billings Businessman Gary Buchanan, Public Service Commissioner Bob Anderson, former Speaker of the Montana House of Representatives Hal Harper, the Montana Senior Citizen’s Association, the Montana Environmental Information Center, the Northern Plains Resource Council, Progressive Labor Caucus, and the Montana Green Party.