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Distributive energy Montana's new frontier.

Article Excerpt
The past six years brought dramatic changes in Montana and its energy resources. The state moved from a regulated energy environment into a deregulated system of power generation and distribution. Business and residential consumers went from enjoying some of the lowest power rates in the nation to paying the third highest rates in the Northwest, with more increases likely. (1)

Although Montana still boasts an abundance of both non-renewable and renewable energy resources and is still a net exporter of generated energy, skyrocketing costs demand reconsideration of Montana's traditional focus on extracting and exporting natural resources and energy with little or no added value. Montana's abundance of natural resources can no longer guarantee low energy prices for its citizens. Only with innovative thinking and new technologies can consumers again enjoy lower cost, reliable energy supplies.

Given its resource base and rural demographics, Montana is well positioned to apply distributive generation technologies utilizing existing sources of energy. Distributed generation (or DG) involves modular, self-contained electric generation located near the point of use. A number of technologies can (and are) being used in the generation of distributed energy, including diesel generators, wind turbines, and fuel cells. Many are available now and ready for use.

DG systems can be operated as independent, stand-alone sources of power, or can be used in conjunction with established grid power. Montana can leverage some of its non-renewable resources in innovative ways to help bridge the gap until other technologies and renewables become widely available and affordable. Distributive energy technologies, combined with existing natural resources, can be a major asset during this transition.

The debate over deregulation will certainly continue, but it is still an opportune time to think creatively about how the energy future of this state could evolve in a different way. Montana is blessed with vast quantities of resources, including fossil fuels. There is considerable potential in terms A of some renewables--notably wind and solar. And Montana's rural, agriculture-based population, particularly in eastern Montana, is not easily served by a centralized energy infrastructure. Priority should be given to meeting the energy needs of Montana businesses and residents in an efficient and cost effective manner. Montanans should be the first to benefit from native natural resources--not simply in the form of severance taxes--but also as a direct source of energy for their own needs. This is not yet happening, nor will it, as long as we continue to think only in terms of extracting and exporting energy resources.

Montana's Changing Energy Landscape

Montana's energy landscape changed dramatically when energy deregulation (Senate Bill 390) passed the Legislature in 1997. This legislation was written by Montana Power Co. and introduced and passed at the very end of the legislative session, arguably with little understanding of its implications. Within a year, MPC began the process of getting out of the energy business. In 2002, the company ceased to exist. The breakup of MPC included the sale of its energy-generating assets to...