Montana PSC Halts Payment to Law Firm Amid Colstrip Dispute

HELENA, Montana – The Montana Public Service Commission (PSC) is facing scrutiny over a $25,000 invoice from a Washington, D.C.-based law firm, Michael Best & Friedrich LLP, hired to intervene in a Federal Energy Regulatory Commission (FERC) case involving NorthWestern Energy’s acquisition of shares at the Colstrip power plant. The invoice remains unpaid, raising concerns about the PSC’s ability to secure legal expertise in future federal regulatory matters.

Background: NorthWestern Energy and the Colstrip Plant

In July 2024, NorthWestern Energy announced its plan to acquire shares from Puget Sound Energy at the Colstrip electricity generation plant, anticipating benefits for customers starting in January 2026. But, the utility subsequently formed a subsidiary, NorthWestern Colstrip 370 PuLLC, and directed the new shares to this entity, claiming it is not subject to PSC authority.

PSC Intervention and Legal Counsel

The PSC initially intervened in the federal docket, arguing that NorthWestern Energy was attempting to circumvent Montana law and avoid FERC scrutiny. To support this effort, the PSC hired Michael Best & Friedrich LLP, whose attorney was described as the firm’s top legal expert on FERC matters. The firm submitted a filing in December 2025, requesting a FERC investigation into NorthWestern’s handling of the Colstrip shares.

Payment Dispute and Contract Issues

As of January 15, 2026, the PSC had not paid the $25,000 invoice. A PSC spokesperson initially stated that payments could not be processed without an executed contract, and that commission leadership was unaware of work performed prior to contract execution.

Concerns Over Future Legal Support

Commissioner Brad Molnar expressed concern over the payment delay, warning that it could hinder the PSC’s ability to secure legal support in future federal cases. He noted that he recommended the firm based on prior experience and that its billing rate was the lowest bid received.

Broader PSC Contracted Services Spending

The payment issue comes as the PSC faces scrutiny over its overall spending on contracted services. The commission has already paid out at least $54,382.66 in the current fiscal year for an investigation into alleged professional misconduct by Commissioner Molnar. Additional contracts with other firms have also incurred costs, including $12,750 to CMS for consulting services and $24,054.75 to Christensen & Prezeau in connection with the Molnar investigation.

FERC Decision and PSC Withdrawal

In December, FERC deemed NorthWestern Energy subsidiary’s application to sell power from the newly acquired shares as “deficient” and requested further details. Subsequently, the PSC withdrew from the FERC case, stating it had made errors in its filing but intends to pursue the matter at the state level.