Viewpoint: Reliable energy needed to protect volatility
Chad Bauer
The recent editorial in the Missoula Current criticizes the Montana Public Service Commission’s approval of NorthWestern Energy’s rate case, particularly the inclusion of costs related to the Yellowstone County Generating Station (YCGS). While acknowledging concerns about cost controls and planning, the piece overlooks essential realities about energy reliability, affordability, and the broader public interest that this investment addresses.
First and foremost, Montanans need reliable energy service, especially service that is available 24 hours a day, in all weather conditions, and affordable for families, businesses, and critical institutions. The YCGS facility, a 175-megawatt on-demand natural gas-fired plant near Laurel, was designed and constructed specifically to
meet peak capacity needs that cannot be met by intermittent sources alone.
Dispatchable generation like YCGS ensures that when wind and solar output drops – whether due to nightfall, calm conditions, or extreme weather – Montanans aren’t left in the dark or forced to purchase expensive power in out-of-state markets.Such capacity enhances grid resilience and keeps more volatile energy costs from being passed on to customers.
The editorial’s implication that the rate adjustment is simply a windfall for NorthWestern fails to account for how utility rate structures and long-term investments function. The new PSC-approved rates reflect the actual cost of safe and reliable energy service. Without cost recovery, utilities cannot maintain or expand essential infrastructure. YCGS delivers dependable energy today while cutting exposure to variable market prices and
enabling greater renewable integration through flexible, ondemand generation.
Many opponents argue that alternatives that appear cheaper, such as renewables, could have satisfied Montana’s generation needs. But relying solely on intermittent resources without sufficient dispatchable backup would jeopardize reliability and could actually increase system costs over time if emergency purchases from the wholesale market become routine. Natural gas generation like YCGS remains one of the most dependable mechanisms for balancing a grid with rising amounts of renewable energy.
It’s also worth noting that NorthWestern reached settlements with major intervenors on many elements of the rate review, and the portion of the rate increase tied to the Yellowstone plant was subject to detailed regulatory scrutiny over an extended public process. The PSC’s eventual partial approval reflects a balancing of cost accountability with the need to maintain energy system stability for all customers.
Finally, energy affordability, often missing from the op-ed’s framing, must account for long-term cost trends and customer risk. A utility grid that depends too heavily on market purchases or aging infrastructure with limited capacity can expose consumers to sharp price spikes during droughts, cold snaps, heat waves, or regional supply constraints.
Smart investment in generation and infrastructure can mitigate those risks and produce a more stable bill trajectory for Montanans over decades, not just months.
In short, while cost discipline and planning transparency are vital, so too is a reliable, locally controlled energy resource base that protects customers from future volatility.
Supporting NorthWestern’s request for rate adjustments to recover prudently incurred costs is not about rewarding a “monopoly”; it’s about ensuring Montanans have affordable, reliable, and resilient energy both now and in the decades ahead.
Chad Bauer is the president and CEO of the Missoula Chamber of Commerce