She said she will work to help find solutions to the dramatic price increases consumers have seen since the Montana legislature deregulated electricity.
"We need to think about how we're going to do energy in the future and clearly it's going to be in a carbon-constrained world--Congress is going to set carbon standards," she said. "I want to help create jobs for Montanans, and help shield them from the expected dramatic increases in fossil-fuel-based electricity. Montana has the opportunity to bring back fair and reasonable utility rates, but we can't do it by maintaining the status quo."The PSC is a regulatory body that examines rates set by the energy utility companies. The PSC commissioners work closely with legislators to promote changes that can benefit Montana ratepayers.
Gutsche said she wants to work with the PSC and the utilities to develop Montana-based generation facilities, while solving the problems caused by deregulation.
Gutsche, a Democrat and former Montana state legislator from Missoula, is seeking the seat held by former Republican legislator Doug Mood, Seeley Lake. As a legislator, Mood was a staunch supporter who voted for deregulation, she pointed out.
"What happened with deregulation is that Montana Power sold its generating dams on the rivers and its interest in coal-fired power plants to Pennsylvania Power and Light (PP&L). In this new deregulated environment, the only restriction was competition from other suppliers on the open marketplace," she explained.Deregulation failed because Montana's small population and large distances were not attractive to companies and they did not compete for the Montana market, she said. The end result was the worst of all possible worlds: no competition, a sole supplier, and no way to control rates.
That means that Montanans saw dramatic price increases while purchasing the bulk of their power from the deregulated PP&L. The dams and the coal plants owned by PP&L are not regulated by the PSC.
The PSC does regulate the transmission and distribution system, and can work to ensure that Northwest Energy has fairly priced services for its customers, but the PSC has no say over PP&L, she pointed out. "We don't have any say over what PP&L does. Therein is the problem."
Everybody's energy bills utility bills have dramatically increased some peoples bills have as much as doubled since we deregulated. "I'd like to work to find some solutions to that," she said.
The last legislative session enacted partial re-regulation, allowing PSC oversight of any new generation facilities that Northwest Energy acquires. But the PSC still won't be able to affect anything happening in Pennsylvania.
"There are other things we can do to rein in PP&L, mostly through legislation," she pointed out.
For example, the PSC could lobby legislators to generate revenue for rate relief, either by increasing the wholesale energy transaction tax, or adjusting the property tax relief on large power generators, or enacting a hydroelectricity production tax.
Interestingly, the PSC is made up of all former legislators and would be able to work with the Montana legislature on developing new policy.
Gutsche served four two-year terms in the Montana House of Representatives during the legislative sessions in 1999, 2001, 2003, and 2005. She served on the Judiciary Committee, the Fish, Wildlife and Parks committees, and was vice-chair of the Natural Resources Committee. She also chaired the Law and Justice interim committee. She was elected Democratic Whip in 2005.
She recalled serving at the same time as former Rep. Paul Clark (HD-13), who is now running for Sen. Jim Elliott's former seat in Senate District 7.
Her main legislative interests involved public access to land, improving habitat for wildlife, preserving clean air and water, and health care, especially for low-income folks and women.
Since leaving the House, she has served on an advisory council for the Department of Corrections.
On the PSC, she said she would seek to develop Montana's renewable resources, especially wind power, but also solar power and geothermal.
In 2005, the Montana legislature passed a renewable energy standard that requires utilities to obtain 15 percent of their energy from renewables by 2015, she noted. The Northwest Energy Judith Gap project is already halfway to that goal, and costs less than the average cost of the rest of the portfolio.
"I think the PSC's role is to encourage Northwest Energy to look at renewable sources, and to work with the legislature to work with the utilities again," she said. "There are many opportunities in Montana for renewables and energy efficiency. Conservation and energy efficiency is our best response because using less energy has significant benefits over developing any new sources of power." Consumers can help hasten the transformation by demanding more efficient and more renewable energy, she suggested. "It's certainly an important part of the recipe."New technologies like "smart grids" will create jobs, and Montana can be at the forefront, she suggested. Smart grids increase energy effeciency through methods such as setting your appliances to come on and off at off-peak hours
"We need to do what we can to rein in outlandish energy prices, especially when large energy companies are posting huge profits. PP&L is making record profits, charging record prices. We need to hold these companies accountable," she said.If she serves on the PSC, she promised to keep a lid on rising rates for working folks and others who have to make the choice between paying for food, medicine, and energy. "I want to be an advocate for those folks," she said.
Gail Gutsche is also a staff member of the Wild Rockies Field Institute.
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