NorthWestern disagrees with PSC

NorthWestern Energy officials disagree with a recent order by the Montana Public Service Commission which rules that Havre Pipeline Co., which is largely owned by NorthWestern, must continue providing “reasonably adequate service” to farm tap customers in remote areas of Blaine, Chouteau and Hill counties.

“We don’t agree with the PSC’s conclusions regarding our obligation to provide natural gas distribution service to some of the residents living near the gas-gathering system,” said Butch Larcombe, a spokesperson for NorthWestern Energy in an email last Monday.

Larcombe said there is an appeals process, but that NorthWestern Energy does has not yet reached a decision on whether or not to appeal the order.

Farm tap customers are allowed to tap into natural gas lines to heat their homes for a set rate.

When the gas lines were being built in the 1970s and early ’80s, many landowners signed contracts granting Havre Pipeline Co. right of way easement in exchange for farm tap services.

However, the PSC’s final order on the matter said that since 2013, when NorthWestern Energy purchased 82 percent ownership of Havre Pipeline, the quality of service has diminished considerably.

NorthWestern said that the wells at the basin of the Bear Paw which supply the gas, are being depleted.

As a result, some farm tap customers have struggled to properly heat their homes and businesses.

NorthWestern has argued that because the gas provided to farm tap customers is unrefined gas that has not gone through the distribution process and is being withdrawn by and not delivered to consumers, the services it provides are not those of a public utility, and therefore not subject to the PSC’s jurisdiction.

The PSC’s order said otherwise.

“The Commission finds that whether the farm tap pulls from the gathering system or the transmission lines, it is regulated by the commission as a public utility,” according to the text of the PSC decision.

The PSC also ruled NorthWestern may not stop providing service to farm tap customers without permission from the PSC.