Montana Public Service Commission Declines Constitutional Responsibility to Consider Climate Change

Helena, MT —

This afternoon, the Montana Public Service Commission (PSC) sidestepped its responsibility under Montana’s Constitution to consider climate change impacts in its regulation of Montana gas and electric utilities. This comes in response to a petition from more than 40 Montana businesses and organizations requesting it consider climate impacts. The commission allowed the petition to languish for 18 months before today’s decision to respond to the climate crisis with a shrug.

Commissioners unanimously voted to pass an order in response to petitioners’ request for declaratory rulings denying the authority to assess the agency’s constitutional and statutory obligations to account for climate costs. While the PSC has not yet ruled on the petitioners’ February 2024 request for the adoption of rules to guide the PSC’s future consideration of climate costs, today’s order said a rulemaking would be the proper vehicle for such a consideration.

“It’s frustrating that this process has dragged on for so long at the PSC just for it to continue avoiding its legal obligation to consider climate change,” said Nick Fitzmaurice, MEIC energy transition engineer. “But Montana’s Constitution is clear, and the Supreme Court decision in Held v. Montana reaffirmed that our right to a clean and healthful environment includes a right to a stable climate. We will certainly be exploring our options for responding to this order and ensuring that the PSC upholds its obligation to protect customers and their utility bills by considering climate change in its regulation of Montana utilities.”

In addition to petitioning the PSC to undertake a rulemaking governing how the Commission accounts for climate costs in its regulation of gas and electric utilities, the petitioners requested declaratory rulings on the Commission’s interpretation of its constitutional and statutory obligations to account for climate costs in its decision-making.

“We are disappointed by the PSC’s further delay in addressing its obligation to consider the climate-related economic impacts of their decisions,” said Michael Hudson, volunteer with Families for a Livable Climate. “We know that climate change will cost Montanans millions — in lost crops and livestock, in widespread health problems from increased wildfire smoke, lost tourism, and more. The PSC regulates the single greatest source of CO₂ emissions in our state, and it would make sense for them to consider its impacts. We are not asking the PSC to do anything that would raise the cost of energy — quite the contrary. We simply want it to consider, as required by our state constitution, the full consequences of its choices on Montana families. We all want affordable, reliable power and a healthy environment for our kids.”

“The PSC makes critical decisions about utility investments in fossil fuel and clean energy infrastructure that affect all Montanans,” said Jenny Harbine, managing attorney with Earthjustice’s Northern Rockies Office. “Under our constitution, the Commission must account for the significant climate costs of its actions. We intend to hold them accountable to that requirement.”

“As a business responsible for stewarding natural resources, we prioritize protecting the land and maintaining stable operations for current and future generations,” said Hiram Towle, general manager of Bridger Bowl Ski Area. “Climate change and its impact on utility affordability, reliability, and the environment, poses a serious threat. This decision further delays a true financial analysis of energy in Montana.

“The PSC lists its functions as ensuring ‘ratepayers have continued access to utility services that are affordable, reliable, and sustainable for the long-term.’ By its own definition, the commission must take a hard look at how any of its decisions can help blunt the worsening effects of climate-fueled hardships that Montanans are suffering,” said Barbara Chillcott, senior attorney at the Western Environmental Law Center. “Making smarter, more forward-thinking energy decisions can better ensure our children’s safety from wildfires, floods, and droughts — rights guaranteed by our state Constitution. The commission’s responsibility is clear.”

Despite the Commission denying petitioners’ requests for declaratory rulings, the rulemaking petition remains before the PSC, awaiting its decision. There is a 10-day period during which petitioners can request the PSC to reconsider its decision on the declaratory ruling.