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Montana Rejects Dam Cheap Power Initiative
The Initiative 145 campaign to give Montana public control of its hydroelectric dams failed to overcome resistance from the companies who own those dams, picking up only 32 percent of voter support on election day. I-145, sponsored primarily by the Montana Public Interest Research Group (MontPIRG ) and state Senator Ken Toole , would have established a board to study the feasibility of buying the 12 dams with public funds. It also would have granted authority to force the sale through condemnation and issued up to $500 million in bonds.
Supporters promised that public ownership would reduce electric rates, preserve land surrounding the dams for recreational use, and protect the rights of fishermen and others with a claim on the state's rivers.
Current dam owners Avista Corporation and Montana Pennsylvania Power and Light spent nearly $3 million to defeat the measure (I-145 supporters spent $100,000), arguing that government couldn't operate the dams efficiently The companies also claimed the purchase price of the dams would be well above their appraised values.
Sen. Toole says the fight to establish local control of the state's hydropower system is not over. "The energy players were sent a signal that people are really getting fed up," he says.
The drive behind I-145 grew out of frustration with Montana's foray into the deregulated electric utility market. Until 1998, Montana's dams were owned by Montana Power Company , a utility regulated by the state's public service commission. In response to deregulation, Montana Power sold the dams to divest itself of generation. Since then, Avista and Montana PPL have operated the dams free of regulatory price controls.
Toole says Montana customers are now stuck paying electricity prices set by California energy markets. "We used to pay what it costs to produce the electricity, now we pay whatever those bastards can get," says Toole, noting that customers got hit with a 12 percent increase last year.
A MontPIRG analysis determined Montanans could save $52 million by purchasing the dams and selling the power at cost. "We're going to keep dogging these guys," campaign leader Don Judge told the Missoulian . "As Montanans become more aware of just how much utility companies are taking out of their pockets and out of the state's economy, they're going to be more receptive to doing something about it."
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Trina Blake