Ryan proposes ‘inverted rate’ for those who conserve energy

A Great Falls state senator has asked legislative staffers to draw up a bill proposal to give residents an electricity break if they conserve.

By PETER JOHNSON
Tribune Staff Writer

"Residential customers did not ask for deregulation, so we need to find a way to protect them from a portion of the increase," Democratic
Sen. Don Ryan said.

Because he is not up for election this year, Ryan can ask the staff to work on bills for the 2003 session.

Ryan also said he hopes the Public Service Commission might consider adapting his idea when its sets the price for the energy portion of
power bills after the rate freeze expires July 1.

He proposes what he calls an "inverted rate" to encourage conservation by allowing residential customers to benefit by using less
electricity.

The average household consumes 750-kilowatt hours per month, Ryan said. Under his proposal, the first 750-kilowatt hour used by a
residential consumer each month would be sold at 90 percent of the price set by the PSC. A resident would be charged 110 percent of the
price for any additional electrical use each month between 551 to 1,500 kilowatt-hours.

According to Ryan, his proposal:

ãWould give consumers who cut back and use less than 750 kilowatt hours a month a 10 percent break. They also would benefit from a
reduced transmission charge.

ãStill benefit consumers at least a bit until the reached 1,500-kilowatt hours a month, the break-even point for the break.

ãWould not even harm those using more than 1,500 kilowatt hours a month, since they would be paying the same rate as if there was no
change.

Ryan said he has discussed his idea informally with officials from NorthWestern Energy, the successors to Montana Power Co., and they
expressed interest. The utility could benefit if the measure reduces electric use and the need to buy high-priced power on the spot market,
Ryan believes.

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