Regulators OK'd To Set Wind Tax

MONTANA, Apr 24 (Neo Natura) - The Public Service Commission has agreed that NorthWestern Energy should be allowed to charge a wind developer for costs related to bringing the alternative energy source into the utility's grid system, but gave the utility less than it had sought.

Northwestern Energy had wanted Two Dot Wind of Billings to pay for "regulating reserve" power to replace wind power during non-production. The utility noted wind power does not provide a steady source of electricity and the wind company should pay for that reserve power.

Two Dot Wind countered NorthWestern was overcharging the company.

On Tuesday, the Public Service Commission developed two separate formulas that it says provides less than what NorthWestern wanted to charge, but will force Two Dot to pay something.

Commissioner Ken Toole said the dispute was to be expected as the state develops a system to handle expanded development of alternative energy sources.

"I think this is normal and natural that we are going to struggle with this new kind of resource," Toole said. "This resource is one that represents a lot of challenges, but it also represents a lot of benefits."

Commissioner Brad Molnar voted against the measure and said he was worried the plan would shift the cost of integrating wind power to consumers.

Chairman Greg Jergesen said the approach taken by the PSC "carefully threaded the needle" to reach a workable compromise.

Jergesen said the arrangement might be used as a template if other disputes arise between NorthWestern and wind developers.

NorthWestern buys power from Two Dot Wind, and others, as part of a requirement under state and federal rules to buy energy from small wind developers.