Montana for two decades endured a tug-of-war between groups wanting no development in the state and others wanting a no-holds-barred approach, a state official said Tuesday. Evan Barrett said most Montanans are in the middle of those two extremes, and he said Gov. Brian Schweitzer is too. Barrett, the governor's chief business development officer, said the administration wants energy development but wants it done responsibly.

The Alberta Utilities Commission's approval Tuesday of the proposed Montana Alberta Tie Ltd. line was the final Canadian permit needed for the 240-kV AC line, which would interconnect electricity markets and carry 300 MW north and south. The commission said the proposed line satisfied its conditions, including a process for negotiating disputes with landowners. ...Wind farm developers in Alberta and Montana have fully subscribed the line for marketing power both north and south.

A panel chaired by U.S. Sen. Max Baucus on Tuesday approved an energy-tax package designed to boost alternative energy production and conservation - partially at the expense of big oil-and-gas producers. "This is a significant victory in our efforts to become more energy independent," said Baucus, D-Mont., who chairs the Senate Finance Committee. "We have more to do to address climate change, lower gas prices at the pump and wean America off of foreign sources of energy." The Finance Committee approved the $28.5 billion, 10-year tax package, which is expected to become part of a larger energy bill before the U.S. Senate this week. The package includes tax credits to encourage production of wind power, solar power, gas-electric hybrid cars, biodiesel fuel and "cellulosic" ethanol, which is produced from agricultural waste products.

A pair of wind farm projects in eastern Montana are in jeopardy after a bill that would have allowed an electricity cooperative to own generation equipment was tabled Tuesday by House Republicans. The measure, sponsored by Democratic Sen. Dave Wanzenried of Missoula, would have enabled the Billings-based Green Electricity Buying Cooperative to own $31.7 million in wind-farm projects and sell bonds to finance them. Current law limits the co-op and others like it to buying and supplying power.

HELENA - Democratic U.S. Senate candidate Jon Tester has staked a good chunk of his political reputation on his support for alternative energy, like wind power. But when you hear his opponent, U.S. Sen. Conrad Burns, R-Mont., talk energy policy these days, the two often sound the same. Burns, long seen as a reliable friend of the oil and gas industry, is touting his work on alternative energy, noting that the 2005 federal energy bill contained vital incentives to boost wind power. "We would not have the windmills going up in Montana had it not been for our work in that energy bill," says Burns. "Nothing moved until we got those (tax) credits for wind."

Potential wind-farm development was the overriding reason why the state Department of Environmental Quality approved the proposed high-voltage power line that would tread its way across eastern Teton County between Great Falls and Lethbridge, Alta. Montana Alberta Tie Ltd., or MATL, with offices in Calgary, Alta., submitted an application under DEQ's Major Facility Siting Act program on Dec. 1, 2005, providing a variety of reasons why its proposed privately-owned, 230-kilovolt transmission line would benefit the region. ... Aggrieved parties who believe they are adversely affected by DEQ's decision have 30 days to appeal.

What may be the most significant environmental-policy/energy bills of the session face a crucial vote today in the Montana House - a vote that could go a long way toward getting the bills through the Legislature. The bills sponsored by Rep. Llew Jones, R-Conrad, would restrict how citizens and citizen groups can appeal permits for energy projects such as power plants and transmission lines.

Financing prospects for large-scale energy projects in Montana have dimmed with the crisis on Wall Street, but some that already are under way should proceed as planned, state officials and developers said. ...Gov. Brian Schweitzer told The Associated Press in a recent interview that several companies assured him their projects will not be derailed by the downturn. Still, he cautioned that the recent heady pace of development could end if the economic outlook remains grim and banks stay reluctant — or unable — to make large loans.

Wind-powered electricity has great potential in Montana, but its future is clouded by an outdated transmission system that makes it tough to get the power to market. That was a key message experts delivered Friday at Carroll College during a conference on the state's energy future. Some in attendance urged lawmakers not to forget about the state's coal resources - or to get too excited about creating an energy economy.

Gov. Brian Schweitzer, joined by industry executives, announced plans Monday to build one of the longest electricity transmission lines seen in the West in 40 years - a line that would carry “green” energy to big energy markets thousands of miles away. The governor, who has placed coal-to-liquid fuel facilities as one of his top priorities, said he is promising to help TransCanada get environmental permits for the project that the company said could cost $2 billion. If successful, the line would run from the coal fields of Montana to the Las Vegas, Los Angeles and Phoenix energy markets. It would carry electricity created by either wind power or synthetic gas derived from coal to meet clean energy requirements in the Southwest.

Gov. Brian Schweitzer wants property tax breaks as big as 75 percent for “clean and green” energy development and transmission, part of his effort to develop energy resources in the state. Schweitzer unveiled details on the tax breaks Wednesday, which he hinted at during his State of the State Address last week. A leading Republican in the Legislature said he thought the incentive package would receive bipartisan support.

If Montana is going to develop more of its wind, coal, oil and gas, it will need ways to move energy products beyond its borders, and a new state board or authority can help encourage new power lines and pipelines, supporters of the idea said Monday. “It really doesn’t matter what fuel choice you prefer - coal, wind - it needs transmission,” said John Alke, a lawyer representing Montana-Dakota Utilities. “It’s become an all-important choice in fuel selection and site selection (for projects).” Alke and a host of other energy-industry lobbyists and developers testified Monday in favor of House Bill 114, by Rep. Alan Olson, R-Roundup, which would create a state energy “transmission and transportation authority.” The authority, appointed by the governor, would help plan, analyze and coordinate placement and construction of power lines and pipelines to move energy produced in Montana to markets - mostly outside the state. While Gov. Brian Schweitzer has been a vocal promoter of energy development in Montana, his office did not support the bill on Monday.

The leadership of the Montana House of Representatives has accused the Public Service Commission of trying to skirt consumer protections that became law in 2005. In a letter to PSC Chairman Greg Jergeson, House Speaker Scott Sales and House Majority Leader Mike Lange warned that any attempt to go around the protections built into last session’s Senate Bill 415 would be met by “appropriate action” from the House. The controversy centers around who will pay for the cost of ancillary services associated with small-scale alternative power generation. Those are items related to the generation and delivery of power that don’t include its simple generation, transmission and delivery. Some of those services would include energy loss, energy imbalance, scheduling and dispatching, according to SB 415. Commissioner Jergeson said that in 1993 the PSC decided that facilities that were rated fewer than three megawatts were not on the hook for those costs. None of the current commissioners were serving then. The commission recently ruled that generation facilities with capacities under 10 megawatts would not have to pay ancillary costs.

Big property-tax breaks for developers that construct clean coal-fired power plants and transmission lines carrying "clean and green" energy were approved by Montana lawmakers on the final day of the special session. "This is a classic jobs and environment bill," said Evan Barrett, chief business officer in the governor's office of economic development.

The Montana Legislature last week tabled an opportunity for the state's farmers and ranchers to profit from wind. By voting at the last minute to table Senate Bill 337, a bill that would have allowed Green Electricity Buying Cooperative to use $31.7 million in bonding authority to build 40 windmills on 40 farms across Montana, Montana legislators put on hold the wind company's plans to put together a bid for clean energy bonds and incorporate 40 ranches or farms involved in producing wind energy across the state.

Because NorthWestern operates the transmission lines, the utility must meet federal reliability standards. That means keeping the power entering the system balanced with the demand, or electricity leaving the system. You might imagine wind power as a child playing with a light switch: On. Off. On. Off. That means NorthWestern must quickly dump or add power to balance its transmission lines. When the turbines at Judith Gap produce too much power, NorthWestern sells it back mainly to Idaho Power, sometimes below cost, according to former Royal Johnson, a Billings businessman, a former state senator and a member of The Gazette editorial board. When there isn't enough wind, NorthWestern may have to pay a premium, Johnson said, of up to $130 per megawatt hour. .........Montana has tons of proposed power projects cued up, Gates said, but one project depends on the other. "They need transmission built, and the question is which gets built first," Gates said. "So it's the chicken-and-the-egg thing." Another note of caution was sounded by Bill Drummond, who heads the Western Montana Generation and Transmission. His customers buy wholesale power from BPA, but those contracts run out in four years. Drought and rising demand is tapping the hydropower resources, so BPA is keeping its supply for its closest customers. Right now there are few sellers of electricity to back up wind power, Drummond said. "Faith-based power marketing is a dangerous thing," he said.

The state of Montana has given the green light to a high-voltage transmission line that could trigger millions in green energy production in northcentral Montana. The 600 megawatts of north-south capacity on the Montana Alberta Tie Line has been sold to NaturEner, Invenergy and Wind Hunter. ...Construction won't begin for six months because it will take that long to manufacture the steel poles, which are 90 feet tall and 3 feet in diameter, van't Hof said. Part of the line will also have wooden H-frame poles.

House and Senate Democrats proposed changes to state electricity laws Tuesday that they said are needed to jump-start several wind farm projects. The bill by Sen. Dave Wanzenried, D-Missoula, would allow electricity cooperatives to own wind turbines and other energy equipment. Current law limits co-ops to buying and supplying power.

NorthWestern Energy said it is seeking permits for a natural-gas-fired power plant near Anaconda, Mont., and hopes to start building the plant next year. ...The $206 million plant would be used to stabilize the electric grid and allow NorthWestern to take more wind power onto the system, company officials said. ...PSC Commissioner Ken Toole welcomed the permit application. He said such a plant could allow for the production of more wind power plants, which require so-called "firming" power to fill in the gaps when winds are not blowing.

A Senate panel controlled by Democrats voted Saturday to shelve Democratic Gov. Brian Schweitzer's proposal offering tax breaks to "clean and green" energy development in Montana. The Senate Taxation Committee voted 7-2 to table Senate Bill 562, advertised by the Schweitzer administration as its signature proposal this session on energy development. It wasn't clear Saturday whether or how the bill might be revived before a procedural deadline early next week. Evan Barrett, the governor's chief economic development officer, said late Saturday that there is broad public support for the idea and that he hopes the bill can be revived and moved through the Legislature. "The bill is on the table; it is not dead," he said. "It's not an easy path right now, but we think everyone will be able to work their way through it.