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Montana Senator Daniel Zolnikov Leads Bipartisan Effort to Protect Power Customers from Data Center Costs

Montana Senator Daniel Zolnikov and a bipartisan committee have advanced a draft bill to ensure that data centers do not shift their infrastructure costs onto residential electricity customers. The legislation aims to provide clear regulatory direction for the Montana Public Service Commission to manage large loads, specifically those requiring at least 5 megawatts of demand per month. Zolnikov stated that the bill seeks to place the risk of infrastructure buildout on the entities responsible for the demand, rather than forcing local ratepayers to pay for upgrades if a data center backs out of a project. The draft bill was passed unanimously by the committee, though NorthWestern Energy, the state's largest public utility, noted that some language regarding the prevention of cost shifting may not be entirely realistic. The proposal provides a foundation for the 2027 Montana Legislature to plan ahead. While the utility remains interested in economic opportunities from data centers, the bill aims to put the Public Service Commission in control of the decisions to ensure power affordability and transparency for the public.

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