Montana Environmental Information Center. v. Montana Department of Public Service Regulation

Montana Environmental Information Center v. Montana Department of Public Service Regulation provides insight into the discretion of the Public Service Commission and its impact on renewable energy development in Montana, especially in the wake of the repeal of the Renewable Power Production and Rural Economic Development Act. This case evaluates the Commission’s decisions to grant waivers to NorthWestern Energy for its 2015 and 2016 renewable energy purchase obligations under the Act. The Court found the Commission’s decisions were arbitrary and unsupported by substantial evidence and appropriate reasoning. Montana’s renewable portfolio standards had proven effective in promoting renewable energy and economic development, especially in rural areas. Without these statutory purchase requirements, future renewable energy progress in Montana will largely result from acts promulgated by the federal government, like the Public Utility Regulatory Policies Act, and the policies of the Commission—especially since recently-passed legislation provides the Commission a large role in determining future renewables development. MEIC and other cases interpreting the Commission’s discretion in a renewable energy context provide a framework for checks on the Commission’s authority when evaluating future effects it may have on renewable energy development in Montana.