HELENA -- A governor-appointed committee, looking for ways to help Montana's poor cope with winter heating bills in the wake of big rate increases, has found a pot of money to do just that.
The Consumer Energy Protection Task Force recommended NorthWestern Energy make $1.7 million in excess money collected from special tax on consumers' monthly bills available for programs to help low-income residents.
Officials with Montana's largest utility were told to come back to the Sept. 12 task force meeting with recommendations on how that money should be divided between home weatherization projects to reduce energy use and financial help to pay electricity and natural gas bills.
The money comes from an assessment added to each utility bill, called the universal system benefits charge. It raised almost $11 million last year, with about $8.2 million paid just by Northwestern Energy's 295,000 electric customers.
The money is used for a variety of programs, including help for poorer ratepayers and energy conservation projects.
John Fitzpatrick, spokesman for NorthWestern, said the company has $1.7 million in such collections not allocated to any programs. The utility is willing to follow whatever recommendation the task force has for using that money to help with heating bills this winter, he said.
Members of the task force generally considered bill-paying assistance the most immediate need but didn't want to cannibalize funding for other programs in the process.
John Hines, task force chairman, said the group decided to act at its first meeting because time is critical. If some of the $1.7 million is to be used for weatherization projects, it has to be done before the building season ends in the fall, he said.
''There's no reason to delay if this money is available now," Hines said.
He said the money is not likely to be enough to satisfy the increased needs of low-income ratepayers this winter, although the task force has yet to determine just how much more may be required.
Chuck Swysgood, Gov. Judy Martz's budget director and a task force member, said the governor is considering using some of the $73 million in federal relief money Montana will receive to help with utility bills.
Some task force members raised concerns about leaving the money in the hands of NorthWestern, whose parent company is facing serious financial problems and possible bankruptcy.
John Alke, a Helena attorney, questioned whether the money could be tied up in a bankruptcy proceeding and used to pay creditors.
Fitzpatrick said that was unlikely, since state law dictates how the money can be spent.
The task force was formed by Martz out of concern that recent utility rate increases could pose a serious problem for the low-income Montanans this winter. She charged the group with finding ways to make sure Montanans have access to reliable and affordable energy, in spite of rapidly rising electricity and natural gas prices.
NorthWestern's electric rates went up 14 percent last month and the company has had two 35 percent increases in its gas rates so far this year.
The task force's first meeting was dominated by comments from groups concerned about the financial burden of those rate jumps.
Mary Caffero, spokeswoman for a coalition of low-income and senior citizen organizations, urged the task force to seek additional federal money to help the poor.
But she and other advocates urged the committee not to rob money from other programs, particularly weatherization efforts that provide long-term energy savings for homeowners.
Posted in State-and-regional on Wednesday, August 27, 2003 11:00 pm Updated: 11:22 pm.
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