Montana Public Service Commissioner Ken Toole says PPL Montana tried to pressure NorthWestern Energy into accepting the company's legislative agenda.

Toole called it "unethical" for PPL to seek such a guarantee as part of its 2006 price negotiations with NorthWestern. NorthWestern buys much of its energy from PPL then markets it to consumers.

"To negotiate contracts using their economic position of power in order to extract political concessions in the legislative arena is unethical," Toole told the Great Falls Tribune.

Toole, a Democrat who at times has been critical of both companies, said NorthWestern detailed the issue in Dec. 19 testimony at a PSC hearing.

John Hines, NorthWestern's chief supply officer, told the PSC that PPL wanted to bar NorthWestern from opposing PPL-backed legislation. Hines said NorthWestern refused to agree to the provision as part of the current energy contract hammered out prior to the 2007 legislative session.

The two largest pieces of the former Montana Power Co. have battled on important issues.

Last legislative session, the two energy companies were on opposing sides of the so-called "energy re-regulation bill" that tries to undo portions of the 1997 utility deregulation bill that many blame for higher energy prices.

David Hoffman, PPL's chief lobbyist, called Toole's letter "inflammatory and political." Hoffman declined to elaborate on details of the agreement with NorthWestern.

"It is not our practice to discuss contract negotiations or terms of an agreement to protect proprietary information and the interests of our customers," Hoffman said.

Hoffman said contract negotiations are supposed to remain confidential. He declined to say whether Hines violated that expectation in his PSC testimony.

Toole wants to know if PPL would have given Montana electricity consumers a better price had NorthWestern agreed to the legislative provision.

"Rejection of the term did not modify the price to consumers," Hoffman said. "The prices were based on market conditions in place at the time of the agreement and were signed after protracted negotiations."

Toole said he is also troubled by a contract term between NorthWestern and PPL that required NorthWestern to stay out of a 2007 lawsuit alleging the Federal Energy Regulatory Commission erred when it ruled that PPL does not have monopoly power in Montana.

Consumer advocates and members of the PSC argue that PPL Montana does have a monopoly. NorthWestern has also previously made the same claim, but did not join the appeal.

"That FERC case is really important for Montana consumers," Toole added. "I am worried that NorthWestern not being a party in the appeal will harm the case overall."