NorthWestern donates for heating assistance

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The state's largest electric-natural gas utility is giving $500,000 to programs helping poor customers deal with high energy bills, and the chairman of the state Public Service Commission is calling on energy producers to do the same.

NorthWestern Energy announced Monday it will donate $200,000 each to Energy Share of Montana and a state home-weatherization program and $100,000 to the Montana Food Bank Network.

"We understand that rising energy prices are pinching Montanans, and those with the lowest incomes are among the hardest-hit, because they typically live in homes that are the least energy-efficient," said Bob Rowe, NorthWestern's new company president.

Shortly after NorthWestern's announcement, Public Service Commissioner Greg Jergeson, D-Chinook, issued a statement applauding the company's efforts.

But he also said companies profiting the most from high energy prices -- the unregulated electricity and natural gas suppliers -- should provide some assistance as well.

He said he'll send a letter next week to suppliers asking them to match NorthWestern's donations.

"I am urging electricity and natural gas suppliers to consider donating to low-income weatherization and related programs," so people can install conservation measures now, in advance of the winter, Jergeson said.

The PSC, which regulates utilities in Montana, has been raising the alarm about expected record-high home energy prices this winter, saying consumers should prepare by insulating their home and taking other conservation measures.

Natural gas prices for residential consumers in Montana already are hitting $13 to $14 per dekatherm. Typical homes using natural gas can consume 15 to 20 dekatherms in a winter month.

Electricity prices also have been increasing. Some electric consumers in eastern Montana are served by Montana-Dakota Utilities, which has fully regulated rates. But NorthWestern Energy buys electricity for its 300,000-plus electric customers on the unregulated, open market, and passes those costs onto consumers.

It buys a big chunk of its power from PPL Montana, which owns power plants and hydroelectric dams in Montana and sells wholesale power at unregulated prices.

David Hoffman, spokesman for PPL Montana, said Tuesday the company hadn't seen Jergeson's statement or his request, and declined to comment directly.

However, he noted that PPL already donates about $50,000 a year to Energy Share of Montana, spends about $100,000 a year on grants for community projects, and spends "millions" on recreation sites and restoration work near the rivers that power its hydroelectric dams.

Some of that latter money is required to be spent as part of the company's federal power license. The company also has a trust fund to finance river and wetlands projects, Hoffman said.

Fidelity Exploration and Production Co., the largest producer of natural gas in Montana, didn't immediately respond to a request for comment on Jergeson's statement.

Energy Share of Montana is a private group that helps lower-income people pay high winter heating bills.

Greg Groepper, executive director of the group, said Monday the group is "absolutely delighted" to have more help from NorthWestern, and will chip in $50,000 from its reserves to match the company's $200,000 donation.

The weatherization program aided by NorthWestern's $200,000 donation is Gov. Brian Schweitzer's Warm Homes/Warm Hearts program.

"The upcoming winter season with the significant increase in the cost of energy is rapidly approaching a crisis for many of our less-fortunate neighbors," the governor said. "By making Montanans' homes more energy-efficient, there will be a lasting impact on these families and bring them hope that they will be warm during the cold."

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