Environmental groups are asking FERC to block a coal power deal in Montana. (Utility Dive)
The context: NorthWestern Energy is set to acquire a massive 370 MW stake in the Colstrip coal plant from Puget Sound Energy for (literally) $0 on January 1.
The bridge: To cover the ~$30M annual operating costs until they find a long-term buyer (like a data center), NorthWestern signed a short-term deal to sell the power to commodities trader Mercuria.
The Montana Environmental Information Center is crying foul, arguing to FERC that the Mercuria rate is artificially low and that NorthWestern’s retail customers will inevitably end up covering the financial gap through cross subsidization.