Sierra Club in Montana objects to letter sent by utility company

Aug 26 - McClatchy-Tribune Regional News - Mike Dennison Billings Gazette, Mont.

 

A Montana representative of the Sierra Club says he is "profoundly disappointed" with NorthWestern Energy President Bob Rowe's recent letter to customers warning them about a clean-energy bill before Congress.

Paul Shively, the Sierra Club's senior regional representative in Missoula, said Rowe's letter wrongly suggests that the "cap-and-trade" bill would be bad for NorthWestern customers, noting that it could raise their electric and gas rates.

"In light of the unprecedented amount of science that points to the urgency of addressing global warming, we are, quite frankly, stunned you would distribute such a message under the guise of concern over customers' potential rate increases," he said.

Rowe's letter was included in August bills sent to NorthWestern's 650,000 customers in Montana, South Dakota and Nebraska.

It said the cap-and-trade bill passed in June by the U.S. House could increase household power bills of NorthWestern customers by $225 a year.

On Tuesday, Rowe replied to the Sierra Club letter, saying NorthWestern is not opposed to the cap-and-trade bill but rather trying to "identify ways to lower the customer impact of legislation."

The cap-and-trade bill seeks to limit greenhouse gases by creating a national cap and then granting credits or allowances to industries that emit these gases.

The industries must either reduce their emissions or buy more allowances.

On its Web site, the company suggests changes to the bill, such as increasing the amount of allowances that would be granted to NorthWestern, a utility that gets a substantial amount of its power from coal-fired plants.

Burning coal creates large amounts of carbon-dioxide, a major greenhouse gas.

Rowe said forcing NorthWestern to spend money on more allowances would divert money away from things like new power lines, which are needed to transport power from new green-energy projects.

"I have a strong concern that being required to purchase allowances will crowd out the ability to invest in this critical infrastructure, which will not further progress on climate or other environmental issues in our region, but rather would constitute an economic dead-weight loss," he wrote.

Shively said if NorthWestern is concerned about its customers' bills, it should more aggressively promote conservation and energy efficiency.

He also said NorthWestern's message is inaccurate, because other analyses have shown the customer impact to be less than predicted by NorthWestern, such as the Environmental Protection Agency's estimate of $80 to $111 a year per household.

"We hope you will agree this is a small cost for saving the planet from the pending implications of global warming," Shively wrote.

The company has said its analysis was based on a number of assumptions, and that it chose a relatively conservative estimate for the cost of the cap-and-trade bill's tax on carbon emissions.



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