Don’t fall for NorthWestern Energy’s greenwashing scam | Nick Fitzmaurice

Don't be fooled by NorthWestern Energy's greenwashing scam. The utility flaunts a concern for its environmental impact, claiming to be a regional leader with nearly 60% carbon-free electricity and a 2050 carbon neutrality goal.

However, this is all a smokescreen.

NorthWestern hasn't built new clean energy for its electricity portfolio in a decade, during which time the utility has invested heavily in expensive fossil fuel generation. Claiming nearly 60% carbon-free electricity, the utility ignores that its recently constructed methane plant — the Yellowstone County Generating Station (YCGS)–along with its intention to nearly quadruple its ownership in the antiquated Colstrip plant could reduce the carbon-free ratio of NorthWestern's generation portfolio to as low as 22% .

NorthWestern continues touting its 2050 carbon neutrality goal without any plan to get there, all the while moving in the opposite, extremely expensive direction.

NorthWestern's most recent clean energy investments–the small 40-megawatt Spion Kop and even smaller 11-megawatt Two Dot wind facilities–were built in 2012 and 2014, respectively ( Two Dot sold power to NorthWestern until NorthWestern purchased it in 2018 ). The utility's 20-year contract for power from the much larger and highly cost-effective Judith Gap wind farm expires in 2026, and NorthWestern says it does not plan to renew. All other wind projects in NorthWestern's portfolio were required contracts under federal law, and ALL of NorthWestern's solar resources come from these required contracts.

Despite NorthWestern's claims, it has fought to keep these renewables out of its portfolio, intending to remove them as soon as possible.

Customers have paid three times for Montana's hydroelectric dams, which NorthWestern purchased for nearly $900 million in 2014 , but climate change is reducing hydropower's output . NorthWestern's hydropower output has decreased from 42% of its generation mix in 2019 to only 34% in 2023 , while the utility's continued investments into climate-damaging fossil fuel resources threaten to further reduce the productivity of these dams.

NorthWestern's investments harm not only the climate but also our wallets. After receiving approval for a 28% electricity rate increase less than a year ago, contributing to Montana having the nation's fourth-highest energy costs , NorthWestern is already trying to sneak through another 26% increase to base rates. Included in this rate increase are over $2.3 billion in lifetime costs for YCGS and a blank check for expensive, unspecified future upgrades at the Colstrip plant, which could cost well over $2 billion .

Not only is NorthWestern the only utility in the country planning to invest more in coal-fired power, but its leadership is investing in the dirtiest, most polluting coal plant in the country. The Colstrip plant has also proven unreliable again and again , operational only 50.9% of the time we need it most, far below the utility's claimed 98.3-99.5% . Whether the plant can provide power when customers need it most is a coin toss.

NorthWestern has built the most expensive type of gas plant available and is now attempting to saddle customers with higher stakes in the outdated Colstrip plant.

Why? Because the utility makes a fixed rate of return on its capital investments; the more it spends, the more it rakes in from customers, padding shareholders' returns and executives' multi-million dollar salaries . Without a Public Service Commission that protects customers, NorthWestern will continue to avoid investments in the cheapest energy forms available: Wind, solar, and storage.

While other states are stepping in to take advantage of Montana's nationally ranked second-highest wind energy potential and fourth-highest solar energy potential , NorthWestern doubles down on the most expensive electricity-generating resources available as reflected directly in our skyrocketing electric bills, all the while projecting a false, greenwashed, carbon-free image.

Nick Fitzmaurice is the energy transition engineer at the Montana Environmental Information Center.