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Montana Allows Utilities To Own Community Renewable Energy Projects

A change in the renewable portfolio standard enables utilities to own projects.

June 2009

Photo of three wind turbines on a patchwork of fields on rolling plains. A dark rain cloud is on the low horizon and white clouds are in the high background.

Utilities in Montana can now own community renewable energy projects, including wind farms that use turbines such as these. This photo was taken at the NaturEner Glacier Wind Farm in northwestern Montana, between Shelby and Cut Bank, approximately 25 miles south of the Canadian border.
Credit: Klaus Obel

On April 16, Montana Governor Brian Schweitzer signed a bill allowing NorthWestern Energy and other investor-owned utilities to own community renewable energy projects. The bill alters the state's renewable portfolio standard to allow the utilities an option besides purchasing the power from an independent source.

The new state standard requires public utilities to purchase renewable energy from community renewable energy projects up to 25 megawatts (MW) in capacity. The requirement is aimed at stimulating rural economic development.

Between 2011 and 2014, the utilities must purchase both the renewable energy credits and the electricity from community renewable energy projects totaling at least 50 MW. Beginning in 2015 and each year thereafter, the requirement increases to 75 MW.

NorthWestern Energy serves approximately 656,000 customers in Montana, South Dakota, and Nebraska.

For more information, see the text of the bill and the Montana page on incentives and policies for renewables and efficiency on the Database of State Incentives for Renewables & Efficiency Web site.

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