PORTLAND, OREGON - Ignoring widespread calls from key stakeholders and decision-makers, a federal agency today proposed retaining an extra transmission fee that is a key obstacle keeping Montana wind developers from starting new projects and bringing new jobs to the state.
Bonneville Power Administration Administrator Elliot Mainzer today issued a draft decision that would leave in place the extra fee paid by Montana energy providers to access the Eastern Intertie, a 90-mile section of BPA transmission line that connects eastern Montana’s electricity grid to BPA’s transmission network, which spans western Montana, Idaho, Oregon and Washington. Most electricity providers pay a single network rate to move their electricity across the agency’s 15,000-mile transmission network. But those transmitting electricity originating in Montana have to pay the general network rate plus an additional $2 extra per megawatt-hour of energy transmitted to access the intertie.
Renewable energy advocates are urging the BPA Administrator to reverse its proposed decision and jettison the extra charge in the final rate decision, which is expected in late July.
“This federal agency is holding back economic growth in rural Montana communities.” said Mike Scott, Montana organizer for the Sierra Club’s Beyond Coal campaign. “For years, BPA has tipped the scales against Montana wind developers, putting us two steps behind neighboring states in building wind projects. They’ve still got a chance to the right thing, drop this fee and let Montana compete in a free market.”
If finalized, the decision would also be a setback for Pacific Northwest energy customers who are demanding a cleaner energy grid. Recent studies have shown that Montana wind resources complement the output of wind farms in eastern Washington, matching up ideally with the energy demand characteristics of the Pacific Northwest. An analysis by Energy Strategies LLC compared potential wind sites in Oregon, Washington and Montana and concluded that the strong winter winds in Montana coincide with Puget Sound Energy’s peak system demands in Washington and could provide energy more affordably to Washington customers. The Northwest Power and Conservation Council came to the same conclusion, determining that “Montana wind generation is a much better match with our winter peak demand than Columbia Gorge wind generation.”
Mainzer’s proposal is counter to the pleas from a broad coalition of stakeholders from across the political spectrum and both sides of the mountains who urged him to eliminate the arbitrary fee, including:
“BPA’s proposed decision refuses to eliminate an unreasonable duplicate charge that has left nearly 200 MW of BPA’s transmission capacity unused since it was developed in the 1980s,” said Aurora Janke, an Earthjustice attorney representing Sierra Club and MEIC. “This proposed decision is inconsistent with sound business principles and discriminates against Montana renewable resources seeking to supply energy to the Pacific Northwest.”
A final decision is expected in late July.