Gov. Greg Gianforte on June 13 vetoed a bill that sought to establish a legal framework for community solar projects in Montana.
Senate Bill 188 sponsor Chris Pope, D-Bozeman, argued before his colleagues at the Capitol that his proposal would expand access to locally generated, emissions-free power that would lower power bills for participants. He also argued that SB 188 would address utility companies’ cries for additional power sources to meet growing demand and improve the grid’s resilience to extreme weather events.
The community solar projects envisioned by Pope would have created a voluntary framework for participants to own a “share” of a solar array that feeds power into a monopoly utility-owned transmission system. Power generated by the project reduces the participants’ monthly bills.
SB 188 drew more than 20 proponents in legislative hearings and three opponents: Montana-Dakota Utilities, the monopoly utility that provides electricity and natural gas service to eastern Montana; NorthWestern Energy, the shareholder owned company currently asking the state’s utility board to increase its electricity customers’ base rates by $156.5 million in the name of safely, affordably and reliably meeting growing electricity demand; and Consumer Energy Alliance, a Houston-based organization partially funded by fossil fuel companies.
SB 188 passed the Legislature with 100 of Montana’s 150 representatives and senators in support of the measure.
Since it garnered green votes from more than two-thirds of the lawmakers present for the final legislative votes, the Secretary of State will send out a veto override poll that gives lawmakers the opportunity to overcome a governor’s resistance to a given bill. Such overrides are rare when done by mailed poll, and would take support from two-thirds of lawmakers to succeed.
In his veto letter, Gianforte zeroed in on SB 188’s mechanism for establishing a credit to offset a solar share purchaser’s monthly utility bill. SB 188 would have given the Montana Public Service Commission the ability to create a credit structure for subscribers to a community solar project. The PSC is the state’s elected utility board tasked with balancing monopoly utilities’ financial health with the needs of their captive customer bases.
Gianforte wrote that there’s a variety of methodologies to calculate a credit rate, including using avoided cost — the money a utility doesn’t have to spend buying or building additional kilowatts of energy by virtue of having new solar arrays on the grid. Gianforte wrote that it is “impossible to predict” how the PSC would implement SB 188 and it could result in “unreasonable costs” being levied upon utility customers that don’t opt into a shared solar project.
“Furthermore, regardless of the credit rate the PSC sets, there is a high likelihood special interest groups and other activists will sue, seeking higher credit rates from the judicial branch,” Gianforte wrote.
Pope, along with a variety of renewable energy advocates, expressed dismay with Gianforte’s decision, arguing that customers are eager to secure relief from rising utility bills. Montana is turning down economic development opportunities, they said.
“I think the governor has been ill-advised,” Pope told Montana Free Press on June 16. “This doesn’t have anything to do with avoided costs, and it doesn’t have anything to do with the credits. … There are a lot of confusing statements in the governor’s veto that don’t square with the 23 other states that are doing this and the nine electricity co-ops (in Montana) that are implementing this framework. … This is a missed opportunity.”
The Montana Renewable Energy Association issued a joint statement June 16 with the Coalition for Community Solar Access, saying they’re “confounded” by the veto and disappointed that Gianforte “chose to disregard the industry’s direct commitments to responsible program implementation.”
“In a formal letter to the Public Service Commission, the developer community voluntarily outlined clear guardrails for the program — including support for cost containment and a pledge to advocate for solely economic considerations in future ratemakings,” the groups wrote. “These proactive steps were designed specifically to address concerns about PSC authority and potential cost impacts.”
Scott Sweeney, a member of the Northern Plains Resource Council who testified in support of the bill, wrote in a statement issued on June 17 that he’s “stunned” by the veto.
“Montanans are facing tough economic challenges while our state’s largest utility, NorthWestern Energy, continues to raise rates and abuse its monopoly position,” said Sweeney, who formerly served as the general manager of the Fergus Electric Cooperative. “Gov. Gianforte is clearly out of touch, and this veto puts the interests of wealthy, corporate energy executives above the needs of Montana’s families, small business owners, farmers and ranchers.”
Derek Goldman with NW Energy Coalition underscored that the proposal would have ensured that “all customers — not just those who own homes with ideal rooftops — can benefit from affordable renewable energy” in Montana. Goldman noted that community solar projects in Oregon and Washington have had no trouble finding subscribers.
Pope, who sponsored similar legislation that was defeated early in the legislative process in 2023, said he will be meeting with the coalition that worked to develop and advance SB 188 to talk about next steps for community solar in Montana.
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This story was originally published by Montana Free Press and distributed through a partnership with The Associated Press.
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