BUTTE -Northwestern Energy has officially made a request to the Public Service Commission to approve new tariffs on large energy users such as a data center that is proposing to move to Butte.
This request for large new load tariff would establish special requirements and contract terms for electric services for new customers of five megawatts or greater.
“Our responsibility is to serve new opportunities in a way that protects our existing customers and strengthens Montana’s energy future,” NWE President and CEO Brian Bird said in a statement released by the utility company.
The Public Service Commission will review the request and make the final decision.
Many residents in Butte are concerned utility bills will increase to cover the cost of a proposed data center that wants to build near Butte. The Sabey Data Center has a land purchase agreement for 600 acres at the Montana Connections industrial park.
WATCH: Residents in Butte concerned about higher utility rates
Some residents are skeptical about the recent tariff request. Some want a separate rate class for data centers.
“Data centers are completely separate from what they pay from the rest of us in Montana, so we’re not bearing the burden for the out-of-state corporations to suck profit out of the people of Montana,” Butte resident Erik Nylund said.
Butte Chief Executive J.P. Gallagher supports the data center, claiming it will create jobs and not be a burden on energy and natural resources.
Nylund said Butte watchdog groups will be paying close attention to the Public Service Commission, which will give the public a chance to review its decision and make comments.
“I think there’s a way and a time and a place where data centers can be built, if they’re done right, but Montana has no protection. There are more regulations right now on a bratwurst than there are on data centers,” Nylund said.
