Great Falls OKs creating own electric utility

City Commissioners gave their unanimous approval to an ordinance authorizing a municipal electric utility Tuesday night.

By PAULA WILMOT
Tribune Staff Writer

Hours before the meeting, however, City Manager John Lawton put $500 on the line toward a joint venture for obtaining future electric power for Great Falls.

Lawton said the cooperative venture with five southeast Montana rural electric co-ops supplies the expertise the city needs to enter the electric utility arena.

"I haven’t seen a lot of leadership on this at the state level," Lawton said, "and I don’t feel we can wait for the state to take care of us. It isn’t likely to happen."

If only for its own needs, the city figures it needs to enter the electric utility business because of NorthWestern Energy’s unilateral cancellation of contract rates favorable to the city of Great Falls, school districts and other governmental units.

Mayor Randy Gray said he found NorthWestern’s action offensive and expensive, noting the company’s action would cost the city of Great Falls an extra $1.5 million over the next five years.

"I see the role of government as providing essential services to constituents. We already provide water, sewer, garbage, streets, police and fire services. It’s time we look at electricity too," Gray said.

The ordinance approved Tuesday night allows just that, the ability to consider purchasing electricity for its own needs, possibly those of other government entities and maybe even the city as a whole.

The first order of business is to develop sources of supply, Lawton said.

"Stable and dependable sources might be more important than price, although we also want reasonable prices," he added.

Dennis Lopach of Helena, a NorthWestern vice president, questioned whether low cost counts as much as stability.

"We’ve had an unfortunate parting of the ways. The circumstances of the termination of the contract can be attributed to a bankruptcy situation," he said.

California’s troubles, Lopach said, were a result of the state buying energy high and trying to force it onto its customers.

Great Falls’ new ordinance, he said, is "not about becoming a supplier of power, but about becoming a utility."

Commissioner John Rosenbaum characterized the performance records of co-ops as "responsible" and in contrast to the record of corporate American in the utility business.

"Power generation is a real option," Rosenbaum added.

Tim Gregori, general manager of Central Montana Electric G & T Co-op, said the city’s idea is a good idea, "to make the Electric City an electric city."

http://www.greatfallstribune.com/news/stories/20031008/localnews/411240.html