Economic potential tied to reliable, affordable electricity

Montanans personal income grew 20 percent year-over-year, housing prices are up more than 30 percent and the number of job postings in the state were 62 percent higher in July than in February 2021. It really is a recession experience like no other.

  What does it mean for Montana’s economy, the businesses that support it and Montanans? Bureau of Business and Economic Research Director Patrick Barkey boiled down and explained the data for the Montana Chamber Foundation’s mid-year economic update this summer.

Workforce shortages and affordable housing, big issues in the Montana economy in recent years, continue to present challenges.

But another looming challenge is how Montana can continue to retain our valuable business recruiting and retention asset, our affordable and reliable electricity.

California is by far the nation’s largest net electricity importer today.

Montana’s historical position as an electricity exporter is fading. Total electric generation is down from a decade ago in the state. Montanans are using more electricity than we were a decade ago. What happens if that trend continues?

NorthWestern Energy already buys about 45 percent of the electricity from the market to meet peak loads for Montana customers. Two years ago, MDU told the Montana Public Service Commission it expects to be resource-deficient in 2022.

Can Montana continue its ranking as a state with electric rates lower than the national average if we continue buying electricity from the market to meet high demand like California does, the nation’s largest net electric importer with electric rates that are double Montana’s?

Can the grid system import electricity from out-of-state reliably when demand is high to serve Montanans?

What will happen if rolling blackouts, used in California and other states to keep the grid stable when customer demand outpaces electric supply, become necessary in Montana?

It will not be good for business.

Montanans need to be informed about and involved in the issues —  including affordable housing, workforce shortages, and energy reliability — challenging our state’s economy and the solutions to overcome those challenges.

As the leading business advocate, the Montana Chamber of Commerce works to advance positions that promote success for Montana businesses. Join us as we work together to make our beautiful state an even better place to work.

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Montana Chamber of Commerce President and CEO Todd O’Hair.