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Montana lawmakers briefed on Talen bankruptcy

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Montana lawmakers briefed on Talen bankruptcy


Talen Vitality tried to place its chapter in the absolute best mild Thursday in a gathering with Montana legislators about what the corporate’s restructuring meant for Colstrip Energy Plant.

In a listening to that lasted roughly an hour, Debra L. Raggio, a Talen senior vp who appeared by Zoom, asserted the chapter was good for the state’s largest energy plant and wouldn’t negatively impression environmental cleanup or worker pensions tied to Colstrip.

Raggio characterised the choice by a number of Talen core collectors to swap $1.4 billion in unsecured debt for possession as an funding in an organization collectors imagine in. There will probably be no change in the way in which Talen operates, she stated.

“Talen can have house owners however the purpose they’re investing on this firm is as a result of they imagine within the plan that we have proven them and the marketing strategy and the way we’re working. It’s not going to be a model new method,” Raggio advised the Vitality Telecommunication Interim Committee in a livestreamed listening to. “It’s not going to be a model new method there. There is not a need to dump property or change issues considerably upon emergence to my information. We will not predict what is going to occur, however on condition that they wish to take part after listening to the plans and our property and the way we construction and the way we run issues, at the least I really feel assured that issues aren’t going to vary that a lot.

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Talen’s debt is roughly $4.5 billion. In its chapter submitting Might 9, the Texas-based firm stated that its seven coal-fired energy vegetation had turn into unprofitable in markets the place energy from gas-fired turbines and renewable vitality sources had been extra cheaply priced. The corporate’s chapter marketing consultant knowledgeable the U.S. Chapter Courtroom for the Texas Southern District that Talen deliberate to remove coal at its wholly-owned services, which doesn’t embrace Colstrip.

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The Montana Division of Environmental High quality emphasised Thursday that Talen’s cleanup bond to cowl the corporate’s share of environmental prices was in hand, ought to the state by default turn into accountable for cleansing up the facility plant’s poisonous coal ash ponds at a value of a number of hundred million {dollars}.

However final 12 months, DEQ lower the $122 million from the cleanup bond requirement for the Colstrip ash ponds servicing the now-shuttered producing Items 1 and a pair of. DEQ has lowered the cash-up-front necessities for cleanup of the practically 50-year-old energy plant complicated beneath the idea more cash might be collected later. Talen negotiated down the bond over 11 months in 2021, eight of which came about after it had employed a chapter marketing consultant, in line with court docket data, stated Anne Hedges, of the Montana Environmental Data Heart.






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A 2013 aerial view exhibits the Colstrip energy vegetation and settling ponds.




“They preserve telling us, ‘Don’t fear, we’ve the chance to re-up Talen’s bond at a 12 months, or five-year increments, if nothing else,” Hedges advised lawmakers. “Properly, what occurs when an organization merely doesn’t have the cash? What occurs if the corporate doesn’t exist? We’ve seen corporations on this state, who now not exist, that truly owe for cleanup at services that DEQ beneath bonded.

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“We don’t need that to occur. As a result of what would occur is the remainder of the house owners must choose up the Talen share. And, you already know who the remainder of the house owners are? A part of them, they’re us. They’re NorthWestern Vitality prospects,” Hedges stated.

NorthWestern, the biggest monopoly utility serving Montana, owns a 30% share of Colstrip Unit 4, a twin share to Talen’s 30% stake in Unit 3. The opposite house owners are PacifiCorp and Portland Common Electrical, of Oregon, and Puget Sound Vitality and Avista Corp., of Washington.

In a separate lawsuit in opposition to Talen’s Colstrip predecessor, PPL Corp., Talen claims that PPL wrongfully took $733 million of the online proceeds from the sale of PPL’s Montana hydroelectric dams earlier than spinning off its coal energy properties to Talen Montana in 2015.

Talen alleges that PPL’s actions left the present Colstrip Energy Plant operator and co-owner “unable to fund its important obligations each for environmental remediation, in addition to obligations to different collectors resembling its workers’ and former workers’ pension plan.”

Raggio advised legislators {that a} report for the final quarter confirmed the pension 94% funded.

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Debra L. Raggio, Talen Energy

Raggio


Wednesday, Talen Vitality advised Lee Montana Newspapers that Talen anticipated to have the pension totally funded by the top of 2025.

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Earlier within the week, previous and current Colstrip workers obtained letters from Talen CEO Alex Hernandez addressing how the chapter of Talen Vitality Provide and its subsidiaries would have an effect on pensions. Hernandez advised workers that funds to the pension fund would proceed via the chapter.

Courtroom data present Talen requested authority to spend as much as $14.7 million on an interim foundation to pay for its Colstrip co-ownership obligations together with pension and payroll obligations in the course of the chapter. Hernandez famous that the U.S. Pension Profit Warranty oration, a federal company that bails out troubled personal pensions, was accessible as a backup.

In the identical letter, non-union workers had been advised that lump sum funds weren’t an possibility in the course of the chapter. Talen clarified to Lee that the suspension of lump sum funds utilized to workers aside from these at Colstrip, which didn’t have the choice.

Raggio stated that Colstrip bills could be amongst these lined by $1.7 billion in debtor in possession financing the corporate had secured to cowl prices in the course of the chapter, which Talen expects to wrap up by October.



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State Senator Mary McNally.

McNally


The principally cordial listening to flared briefly after Raggio was requested by Chairman Mary McNally, a Billings Democrat, to remark about Colstrip Unit 3 lately being down.

“Unit 3 just isn’t down. Unit 3 is operating. Unit 4 is out on a upkeep outage, however simply routine upkeep, however Unit 3 is actively operating,” Raggio stated.

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Sen. McNally replied, “OK thanks. I simply heard that in right here.” Then, Raggio lower her off.

“I’ve heard numerous issues, and I wish to appropriate them, however you already know,” Raggio stated.

A couple of minutes later, Rep. Denise Hayman, a Bozeman Democrat, raised the difficulty of Unit 3 operations once more.

“Simply to be completely clear, three was down and it went on-line at present, is that appropriate?” Hayman stated.

Raggio replied that it may need come on-line a day earlier.

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“I feel we’re splitting hairs right here,” Hayman stated. “It has been down. Appropriate?”

Raggio replied “it has been down, Consultant Hayman.”

The exciter servicing the facility plant’s Unit 3 generator wants repairs, which most definitely must be completed in North Carolina.







Rep. Denise Hayman, D-Bozeman

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Hayman




Two of the facility plant’s different house owners, each with a stake in Unit 3, had confirmed to Lee Montana prior to now week that repairs wanted for Unit 3 have impacted Colstrip’s efficiency for a number of weeks. The price of repairs, together with the exciter, is predicted to be important, which isn’t any small matter on condition that the facility plant’s six house owners have disagreed about Colstrip upkeep prices for a number of years, with a lot of the house owners eager to spend lower than Talen, as energy plant operator, has requested.

There was a letter submitted into proof Thursday indicating that Colstrip house owners with a mixed 70% stake within the energy plant, had realized about Talen’s monetary issues via the information and wished to know why Talen hadn’t advised them.

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Colstrip house owners with a mixed 70% stake within the energy plant realized about Talen’s pending chapter within the information, after which they wrote Talen demanding to know why Talen hadn’t advised them.


“Talen’s failure to report materials adjustments in its monetary situation is inconsistent with its fiduciary duties as Operator, and augments concern about Talen’s skill to proceed to carry out in that function,” the proprietor’s wrote. Energy plant co-owners Portland Common Electrical, Avista Corp., PacifiCorp and Puget Sound Vitality had issued the letter.

The 4 house owners went on to say that Talen’s actions impression their skill to make choices about protected and compliant operation of Colstrip and jeopardized the continued operation of the items. The letter was issued April 12, practically a month earlier than Talen’s chapter submitting.

Relations between Talen and Colstrip’s majority house owners have been strained for just a few years due to upkeep spending disagreements. In 2021, Talen persuaded legislators to move a legislation empowering Montana’s legal professional common to dictate repairs and impose every day fines of $100,000 on any Colstrip proprietor out of compliance.

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Most of Colstrip’s energy is consumed in Washington and Oregon, the place local weather change legal guidelines require utilities to start reducing coal from buyer provide beginning in 2025. Colstrip house owners in these state’s object to pricey repairs useful to the plant’s operation after their exits.







Colstrip

Colstrip items 1 and a pair of, left, had been shut down by Talen Vitality in 2020 as a result of the items had been now not economical. Talen is a component proprietor in unit 3 and runs the every day operation of the facility plant. 

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One legislator in 2021 likened the state of affairs to a divorce wherein the “Pacific Northwest house owners had been trashing the home and keying the automobile on their approach out the door.”

One other Talen-backed legislation requires all Colstrip arbitration to happen in Montana, nullifying the arbitration phrases of the Colstrip Possession and Operations settlement. With each legal guidelines, the state of Montana makes an attempt to override the personal enterprise contract that’s ruled the facility plant for practically 40 years. The house owners and the state at the moment are tangled in lawsuits over the brand new legal guidelines.

The one proprietor not signing onto the letter demanding details about Talen’s monetary troubles, was NorthWestern Vitality, the biggest monopoly utility working in Montana and a 30% shareholder in Unit 4.

In an April 29 earnings name, NorthWestern President Brian Fowl stated the utility didn’t count on Talen’s monetary troubles to hurt Colstrip.

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“I might say this, we’ve been in touch with Talen and we’re pondering via the implications. I feel, be certain it’s clear to, perceive that Talen is an proprietor of Unit 3. We’re an proprietor of Unit 4. Although, we’ve a reciprocate sharing settlement between the 2 items, nonetheless, how that chapter may impression the operations on the plant, they’re the operator. We’re actually retaining our eyes on, at this cut-off date, we don’t imagine it would have an effect on the operations of the plant,” Fowl stated.

Thursday, McNally known as the Colstrip scenario untenable and requested Talen for an assurance it could be speaking with the opposite energy plant house owners.

“I can commit that we’ll keep in communication to the extent we will with the co-owners and I might ask that they do the identical with us,” Raggio stated.

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Montana's Weather Update: Low Chance Of White Christmas Revealed

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Montana's Weather Update: Low Chance Of White Christmas Revealed


While our prospects for a “white Christmas” in Montana are still looking dim, a blast of vigorous winter weather promises to make travel tough Wednesday, with high wind warnings, and in some places winter storm warnings.

It’s part of a rather odd winter to date, as we hit mid-December with limited snow in the valleys of Western Montana, but more normal snowfall at the higher elevations.

National Weather Service forecasters have issued wind warnings for many corners of the state, with winds gusting 20 to 30 miles per hour in most locations, with the potential to top 50 miles per hour in the Bitterroot, the Madison, along the passes over the Divide, eastern Flathead County and the Northern Rocky Mountain Front. Some locations in North Central Montana could see gusts top 60 miles per hour this afternoon.

A brief warm-up, then cold

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While snow levels will rise, freezing rains will be a problem in some areas, and then temperatures will plunge on Thursday. Northeast Montana will drop to 5-below to 5-above zero, with some areas in the single digits in Southeast Montana.

The severe cold isn’t expected west of the Divide. Forecasters expect overnight and morning temperatures in the Western Montana valleys to drop back into the 20s through the weekend.

And the forecast still doesn’t look conducive to a “white Christmas” unless you’re at that cabin in the mountains or on the slopes. High pressure will move back into the region in the second half of this week and could last into next week.

READ MORE: Missoula Snowplows Stand Ready

Scenic Montana Airbnb Has a Sauna, Perfect for Holiday Getaway

Gallery Credit: Ashley

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Challenges and opportunity for energy production in Montana

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Challenges and opportunity for energy production in Montana


HELENA — Energy needs continue to grow in the Treasure State and on the national level. Industry leaders say there are a number of contributing factors including population growth and the growing tech industry.

On Tuesday, Governor Greg Gianforte hosted an Energy Roundtable in Helena to discuss hurdles faced in Montana’s energy sector, potential solutions and look to the future. The governor was joined by business leaders, large energy consumers and suppliers, community leaders and lawmakers.

“With rising demand on our power grid, we must do more to unleash American energy production in the United States,” Gianforte said. “By bringing together policymakers, the private sector, public utilities, and other energy leaders, I’m optimistic that we can make it easier to produce American-made energy in Montana to benefit consumers and create more good-paying jobs.”

Jonathon Ambarian

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Hauser Dam, northeast of Helena

Participants in the round table discussed the need for reliable and affordable energy, improving the regulatory environment both on the federal and local levels and expanding transmission capacity.

State Senator Daniel Zolnikov, R-Billings, will chair the Senate Energy and Telecommunications Committee this legislative session. At the meeting, he said he is working on legislation aimed at improving the amount of power that can be transferred through Montana’s grid.

“Looking for a way to build transmission in Montana with proper oversight but in a timely manner. I think we’ve attempted to hit all three of those appropriately. Transmission is the big conversation in energy across the country right now,” Zolnikov told MTN.

colstrip.png

MTN News

Colstrip power plant

Montana is a net energy exporter supplying electricity to other states and Canada. Electrical generation in the state comes mainly from coal (45%), hydroelectric (30%), wind (18%) and natural gas (4%). According to the roundtable participants, there continues to be an increased demand each year for Montana energy both on a national level and in-state.

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“We’re hearing from businesses around the state is that some point in the next 10 years or so we’re going to have real serious challenges, which not only challenge our liability but it also challenges our economic growth opportunities in the state,” said Montana Chamber of Commerce President Todd O’Hair.

Roundtable participants say there are a couple of reasons for the jump in energy demand, including population growth, inflation and more investments in the tech industry like data centers.

According to a recent report from the Western Electricity Coordinating Council, the growth in electricity demand for data centers is projected to grow by 20 percent in the next ten years. The same report projected a 9 percent increase in demand only two years ago.

Data centers are a multi-billion dollar industry seeing record growth in the United States. A big push for that growth is coming from more investments in A.I. companies like ChatCPT. According to the U.S. Department of Energy, data centers consume 10 to 50 times the energy per floor space of a typical commercial office space.

On Monday, NorthWestern Energy announced it signed a letter of intent to provide energy services for a developer planning new data centers in Montana. The energy service load is expected to be a minimum of 50 megawatts, beginning in 2027, with growth to 250 megawatts or more by 2029.

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Another topic for discussion was the great potential Montana has for energy growth given geographically where the state is located and the abundance of natural resources in the Treasure State.

“There’s a big opportunity here for the State of Montana. It sits at an intersection of multiple markets so it can both generate and export, but also import when it needs low-cost reliable power,” said Berkshire Hathaway Energy CEO Ed Rihn.

This year the Gianforte Administration has announced several investments into Montana’s energy grid, including $700 million for the North Plains Connector Interregional Innovation project and a $1 billion investment at the Clearwater Wind Energy Center outside of Miles City.





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Montana judge blocks rule that prevented transgender people from changing sex on docs

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Montana judge blocks rule that prevented transgender people from changing sex on docs


HELENA, Mont. — A state judge in Montana has temporarily blocked policies that prevented transgender people from changing the sex designation on their birth certificates and driver’s licenses.

District Judge Mike Menahan issued his order Monday, blocking the rule while the case moves through the courts.

Menahan said it was not necessary at this point in the litigation to determine whether transgender Montanans constitute a special class on the basis of their transgender status, but he disagreed with the state’s argument that discrimination on the basis of transgender status is not discrimination on the basis of sex.

“If the challenged state actions discriminate against transgender individuals on the basis of their transgender status, they also necessarily discriminate on the basis of sex,” he wrote.

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The case was filed in April by two transgender women on behalf of themselves and others who have been unable to obtain documents “that accurately reflect their sex,” the complaint said.

One rule in the state blocks transgender people born in Montana from changing the sex designation on their birth certificate. Another policy prevents transgender residents from changing the sex on their driver’s licenses without an amended birth certificate — which they can’t obtain if they were born in Montana.

Plaintiff Jessica Kalarchik, who was born in Montana, said in a statement Tuesday that she was frustrated that while “being able to live my life openly as the woman I know myself to be,” Montana “wants me to carry around a birth certificate that incorrectly lists my sex as male.”

Birth certificates and driver’s licenses are needed to apply for a marriage license, a passport, to vote or even to buy a hunting license, Alex Rate, legal counsel for the American Civil Liberties Union of Montana, argued last month. Each time a transgender person is required to produce a document that does not accurately reflect their sex, they are forced to “out” themselves as transgender.

The state had argued that sex is binary, either male or female, and that being transgender is not a protected class of people who could have their constitutional rights to privacy violated.

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“The right to privacy does not include a right to replace an objective fact of biological sex on a government document,” Assistant Attorney General Alwyn Lansing argued for the state.

The state attorney general’s office, which oversees the motor vehicle division, and state health department, which issues birth certificates, did not immediately respond to emails seeking comment.

The hearing was the latest volley in a series of laws, rules and legal challenges over efforts by Republicans in Montana and many other states to limit the rights of transgender residents. The state has used various justifications in banning changes to identifying documents, including needing accurate statistical records or saying someone’s biological sex cannot be changed even though someone’s gender identity can.

“The state cannot articulate any legitimate interest in restricting access to accurate identity documents, much less a compelling one,” Rate said during the hearing.

In late 2017, under Democratic Gov. Steve Bullock, the state health department implemented a rule allowing people to change the sex on their birth certificate by signing an affidavit.

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In 2021, Montana’s Republican-controlled Legislature and Republican Gov. Greg Gianforte implemented a law saying transgender people could not change the sex on their birth certificate without having undergone surgery. That law was declared unconstitutionally vague because it did not specify what surgery was required. The state was ordered to return to the 2017 rule.

However, in response, the health department — now under Republican leadership — passed a rule saying nobody can change the sex on their birth certificate unless it was to fix a clerical error.

Montana’s Legislature in 2023 passed a law defining the word “sex” in state law as being only male or female and based upon a person’s sex assigned at birth. That law defining “sex” was overturned as unconstitutional because its title did not accurately explain its purpose, but the ACLU argues the state is still using it to set policy with regard to driver’s licenses.

The ACLU asked Judge Menahan to temporarily block the rule and policy and order the state to restore the 2017 rule that allowed transgender people to change the sex designation on their birth certificate by filing an affidavit.

Menahan’s order blocked the 2022 health department rule on birth certificates and the motor vehicle division policy that prevented people from changing the sex on their driver’s license without an amended birth certificate. He also blocked the bill that defined sex as only male or female as it applied to birth certificates and driver’s licenses.

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Montana is one of seven states that did not allow people to change the sex on their birth certificate. Twenty-five states do allow it, including 15 that offer an option to list male, female or X. A dozen states allow birth certificate changes following gender-affirming surgical procedures, according to the Movement Advancement Project, an advocacy and information organization.

Thirty states allow people to change their sex on their driver’s license. Montana is among 16 states with what the Movement Advancement Project calls a “burdensome process.” Four states do not allow a person to change their sex on their driver’s license.



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