Myths or Facts? Understand The Facts Behind the Colstrip Power Plant
You've Heard the Myths
Get the facts about this important piece of Montana’s energy future.
NorthWestern Energy is responsible for providing reliable, affordable energy service to Montana communities 24 hours a day, seven days a week. By securing majority ownership in the Colstrip Power Plant, we are taking an important step to keep energy dependable and costs reasonable for Montana families and businesses—especially during harsh weather when energy demand is high.
This expanded ownership will secure the future of this vital resource for Montana and ensure that the Colstrip Power Plant can continue to serve a vital need for our state.
Myth:
Other Colstrip Power Plant owners are leaving because wind and solar energy and battery storage is cheaper.
Fact:
Out-of-state owners (Avista, Puget Sound Energy) must exit the Colstrip Power Plant due to Washington state law — not because of cost. Their departure gives NorthWestern Energy the chance to secure reliable, affordable, on-demand energy for our customers at no acquisition (or upfront) cost, increasing ownership to 55% and ensuring Montanans’ energy needs are prioritized.
Myth:
NorthWestern Energy is stuck in the past, relying on fossil fuels.
Fact:
NorthWestern Energy’s Montana portfolio is among the cleanest in the U.S., with more than 58% wind, solar, and hydro generation. The Colstrip Power Plant provides on demand generation in all weather, including when the wind isn’t blowing and the sun isn’t shining.
Myth:
The Colstrip Plant is old, worn out, and unreliable.
Fact:
In the last decade, the Colstrip Power Plant has been available more than 90% of the time when NorthWestern Energy needed its generation for our Montana customers. It provides dependable, on-demand power in all weather conditions.
Myth:
New wind and solar farms will lower Montanans’ energy bills.
Fact:
Wind and solar generation has low operating costs, but its construction and land requirements are very expensive. Building enough renewable energy generation and the ability to store it to match the Colstrip Power Plant’s on-demand reliability would cost at least hundreds of millions of dollars.
Myth:
Montana’s energy needs can be met with existing generation.
Fact:
Montana has relied too heavily on out-of-state energy, which can be expensive and unavailable when demand is highest. Owning more of the Colstrip Power Plant means that Montana has reliable, affordable power—especially when demand is high and the weather is extreme. This protects our customers from price spikes and supply shortages.
Myth:
NorthWestern Energy’s acquisition of additional shares of the Colstrip Power Plant benefits the company’s shareholders, not Montana customers.
Fact:
If the Colstrip Power Plant were to close before replacement generation resources are in place, Montanans’ energy service reliability and affordability would be jeopardized. This acquisition, at no cost, ensures Montana has the energy it needs and safeguards Montana’s energy future.
Myth:
Setting up a subsidiary for the Puget Sound Energy share of the Colstrip Power Plant by NorthWestern Energy is a violation of Montana law.
Fact:
NorthWestern Energy is acquiring Avista’s share of the Colstrip Power Plant, which is adequate to serve our Montana customers’ energy demand today.
Generation from the Puget Sound Energy share of the Colstrip Plant is not needed right now to meet our Montana customers’ energy demand. That’s why we’ve ensured that the costs to operate and maintain this share will not be included in Montana customer rates until it is needed to serve them.
This transaction is specifically structured to protect our Montana customers and fully complies with state law and regulatory requirements.
Myth:
NorthWestern Energy will sell the generation from the Puget Sound Energy share of the Colstrip Power Plant, but Montana customers’ rates will pay for its operation and maintenance costs.
Fact:
The Montana Public Service Commission requires that the only costs in our customers’ rates are costs for the resources to provide them with energy service.
The Puget Sound Energy share of the Colstrip Power Plant is being acquired by a subsidiary of our parent company, NorthWestern Energy Group, Inc. This means our Montana customers will not pay for costs related to that share unless and until it is needed to serve them.
Myth:
It’s unprecedented for a regulated utility and an unregulated subsidiary of a holding company to own the same asset.
Fact:
Colstrip’s Montana ownership structure has included both regulated and unregulated shares at the direction of the Montana PSC.
Reliability First, Opportunity Ahead
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Reliability First, Opportunity Ahead
Our priority is reliable, affordable energy for Montana families and businesses. We’re working collaboratively with stakeholders on a plan that supports economic development while protecting the interests of all Montanans. Together, we are building an energy strategy that strengthens our communities and secures long-term prosperity.
Relief for Colstrip Plant supports reliable energy service for Montanans
Date: Apr 16, 2025
TYPE: News
Butte, Mont. – April 16, 2025 – Colstrip Plant owners NorthWestern Energy and Talen Energy express their gratitude to Montana’s Governor Greg Gianforte, U.S. Senators Steve Daines and Tim Sheehy, U.S. Representatives Ryan Zinke and Troy Downing, U.S. Environmental Protection Agency Administrator Lee Zeldin and the federal administration for the proclamation granting two years of relief from a new Environmental Protection Agency rule. This relief is crucial for the future of Montana’s power generation resource, which ensures reliable energy service in all weather conditions.
“Energy policies that consider energy reliability and energy bill impacts are in the best interest of Montana and the nation,” said Talen Montana President Dale Lebsack. "We are thankful for the recognition of these important factors."
Talen Energy President and CEO Mac McFarland added, “We greatly appreciate the engagement by the Governor, the Montana delegation, and the federal administration. Their support for Colstrip makes a significant difference and is helping to ensure reliable and reasonably priced power is available to Montana citizens.”
“This relief means our Montana customers will not be burdened with hundreds of millions of dollars of costs to comply with a new regulation that would only marginally increase the Colstrip Plant’s air toxics efficiency,” said NorthWestern Energy President and CEO Brian Bird. “The Colstrip Plant is a vital part of our balanced generation portfolio, providing reliable power to Montana customers at reasonable costs.”
The Colstrip Plant is 99.6% efficient in reducing air toxics emissions. The new rule would improve air toxics emissions to 99.8% efficient.
Today, the Colstrip Plant meets both federal and Montana's more stringent mercury standards, as well as the revised mercury standards set by the new EPA rule.
The executive proclamation allows the Colstrip Plant's owners time to effectively evaluate options for compliance with new air toxics standards and provides the federal government time to review the new EPA rule and assess its potential consequences for reliable energy service.
"We appreciate the state and federal administrations’ support in ensuring that energy reliability and affordability remain a priority”, said Bird and Lebsack. “Working together, we can deliver an energy grid – and an energy future – that is affordable, weather-resilient, responsive, and ready for the demand arriving now.”
NorthWestern Energy - Delivering a Bright Future
NorthWestern Energy, provides essential energy infrastructure and valuable services that enrich lives and empower communities while serving as long-term partners to our customers and communities. We work to deliver safe, reliable, and innovative energy solutions that create value for customers, communities, employees, and investors. We do this by providing low-cost and reliable service performed by highly-adaptable and skilled employees. We provide electricity and / or natural gas to approximately 775,300 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. Our operations in Montana and Yellowstone National Park are conducted through our subsidiary, NW Corp, and our operations in South Dakota and Nebraska are conducted through our subsidiary, NWE Public Service. We have provided service in South Dakota and Nebraska since 1923 and in Montana since 2002. For more information, visit www.northwesternenergy.com
About Talen
Talen Energy (NASDAQ: TLN) is a leading independent power producer and energy infrastructure company dedicated to powering the future. We own and operate approximately 10.7 gigawatts of power infrastructure in the United States, including 2.2 gigawatts of nuclear power and a significant dispatchable fossil fleet. We produce and sell electricity, capacity, and ancillary services into wholesale U.S. power markets, with our generation fleet principally located in the Mid-Atlantic and Montana. Our team is committed to generating power safely and reliably, delivering the most value per megawatt produced. Talen is also powering the digital infrastructure revolution. We are well-positioned to capture this significant growth opportunity, as data centers serving artificial intelligence increasingly demand more reliable, clean power. Talen is headquartered in Houston, Texas. For more information, visit https://www.talenenergy.com/
Media Contacts:
NorthWestern Energy
Jo Dee Black
866-622-8081
Talen Energy
Taryne Williams
Director, Corporate Communications
Taryne.Williams@talenenergy.com