Normally I wouldn’t respond to the type of letter Public Service Commissioner Molnar distributed last week to Montana news organizations, especially given the final decision has been made and BBI will not be acquiring NorthWestern Energy. However, the commissioner’s recent letter is so misleading it demands a response. His facts are wrong, his logic flawed, and his analogy — complete with its sexual innuendo — inappropriate.

While it was not clear whether Commissioner Molnar was speaking for himself or for the entire commission, the misunderstanding he demonstrated in his letter seemed to be shared by other commissioners as well.

Commissioner Molnar plainly does not understand our proposal for a transmission line between Idaho and Montana, suggesting that it would lead only to cheaper power being shipped out of Montana. In actuality, Montana consumers could easily have been protected, while allowing new sources of less expensive power into the state, so that Montana is not captive to a few suppliers.

Commissioner Molnar also does not understand the equity model, wrongly stating that we intended to raise the “debt-to-equity” ratio. We proposed reducing the debt and increasing equity from its current level of 39 percent to 45 percent. Commissioner Molnar’s numbers were just wrong. Our approach was consistent with the standard proposed by the Montana Consumer Council, and by the PSC staff, and it was better for the utility.

And on the issue of shareholder distributions, Commissioner Molnar once again does not understand. Our proposal was NOT to take 100 percent of the earnings each year. Rather we incorporated the Consumer Council’s language on restricting distributions — a measure Commissioner Molnar seemed to support during the hearing process. Under the new proposal, the average projected distributions would have been in the range of 60-70 percent, which according to the MCC is the norm for U.S. utilities.

Commissioner Molnar’s comparison of our proposed purchase of NorthWestern to a cowboy’s effort to take advantage of a young, vulnerable, intoxicated cowgirl was confusing and highly inappropriate.

I am proud of what we proposed and wanted to do in Montana.

It would have included:

1) Creating a financially sound Montana utility with a growing Montana workforce, managed in Montana by Montanans, with a majority Montanan Board, legally protected against future financial problems, if any, of NorthWestern or BBI;

2) A commitment to invest significant money in Montana including system improvements, new generation and new transmission; and

3) A generous array of specific ratepayer benefits and rate reductions.

We believe most customers would like to have seen $25 million in rate reductions and consumer aid programs we offered.

The commissioners and staff seem to be good people, trying to do what is right. But it appears that the “ghosts of the past” loomed too large for the commissioners to listen fairly and objectively to our proposal. We admitted our mistakes and we were willing to adjust our proposal to provide a fair result for ratepayers, shareholders and BBI. However, it was simply not possible to know what would have been acceptable to this commission. The process is too cumbersome and there is too little communication. We could not fix all the wrongs of the past by our purchase of NorthWestern which seemed to be the goal of several of the commissioners.

Commissioner Molnar claims that tax losses resulting from the bankruptcy of $300 million were not available if the acquisition was approved. This is false. He also suggests he is going to get Montanans a year of free electricity. The cowboy in Commissioner Molnar’s analogy would recognize that as a load of “bull.”

Despite it all, I’d like to say “Thank you, Montana.” Many of you were willing to listen and honestly evaluate our proposal. Those of you who did so, heard us and supported our request to reopen the process. Your Public Service Commission wasn’t interested in such a discussion. That’s unfortunate for Montana and for Montana consumers.

Mike Garland is an executive with Babcock & Brown Infrastructure.