Speech
Rocky Mountain Area Transmission Study
Remarks of Governor Judy Martz
Salt Lake City
9/29/2004
Ladies and gentlemen, I am so pleased to be here today with my colleagues from Utah, Governor Walker and Governor Freudenthal of Wyoming.
Energy, and the transmission of energy, across the west and throughout the United States, is one of the most critical issues facing all of us in this country today.
Transmission is at the heart of our energy infrastructure. And, as I have been saying for quite some time, investment in environmentally sound transmission is central to our efforts to develop the economic potential for Montana.
We have a responsibility to do all we can to see that our natural resources are developed…in an environmentally sound way… for the energy needs, not only of the people of our states, but to help meet the needs of our sister states in the west and all across this nation.
I firmly believe that this can be done in a way that does not adversely affect the environment, and that the time to act is long overdue.
I TRUST THAT THIS STATEMENT IS CLEAR—and—that everyone can understand where I’m coming from on this issue.
I want to compliment our former colleague and Governor Walker’s predecessor EPA Administrator, Mike Leavitt, and our colleague from Wyoming, Governor Freudenthal, for joining forces in August of last year to form the Rocky Mountain Area Transmission Study (RMATS).
Their bi-partisan effort should demonstrate to everyone that this is not a partisan issue.
It is an issue that needs the leadership and support of each and every one of us, and I am delighted to do my part.
Mike and Dave will tell you that they formed RMATS because the electric power industry has been reluctant to invest in new transmission infrastructure due to protracted regulatory uncertainties. I can’t blame them.
I also want to welcome FERC Commissioner, Nora Brownell, to our meeting today. We are most pleased that you could join us for this very important discussion on the results of our studies, the recommendations from those studies and the proposed next steps.
And, I want to thank Mark Lindberg of my Office of Economic Development for his leadership on this issue, and my Natural Resources Policy Advisor, Todd O’Hair, for all of his work on these matters as well. I have personally devoted considerable time to this matter and I am so glad we are having this meeting today.
I also want to say how happy I am to be in Salt Lake City with one of Utah’s finest leaders, Olene Walker.
Olene, I know you have given so much of yourself to your state, because we served together as Lieutenant Governors and have been friends for many years.
I know the people of Utah will be forever grateful for your service and especially your leadership on this important issue.
Ladies and gentlemen, my state, the great State of Montana, wasn’t named the Treasure State just because it sounded nice. It got its name because we have a treasure of natural resources.
Our vast coal supplies are well documented and will make it possible for Montana to do our part for the region’s energy and economic needs. To do otherwise is simply unacceptable.
Last fall, during the Western Governors’ Association Conference that I hosted at Big Sky, I said that Montana must, and will do its part for the energy needs and national security of our region and nation.
As long as I am governor, and even after I leave this office, I will work towards that end.
During my tenure as Governor we have made great strides to put Montana in a position to be a part of the solution.
Specifically, we have completed coal quality assessments on a large tract of state owned coal and developed an interagency team to coordinate permitting for coal mining and electrical generating facilities. Water resource inventories are underway and we are making preparations to offer state owned coal to interested buyers. (And, we hope that some utilities will want to schedule coal test burns within the next six months.)
And while we have taken action to promote the responsible development of coal and new electrical power production, we must take action to allow for the export of these Montana products.
We can produce the energy for regional economic growth, but we need the infrastructure to deliver that product to regional markets.
That is something we cannot do alone.
While I generally oppose the process of eminent domain, I understand the need for federal legislation that would give the government that right, if and I emphasize if, there is no other way to transmit the power from Montana and the region to the West coast.
I would hope, of course, that existing and new corridors can be found to build the transmission lines, so we can transmit the power.
I would now like to take just a couple more minutes and talk specifically about the recommendations in the report as they relate to Montana….but first I want to thank, Jim Byrne, the RMATS facilitator and coordinator, the entire RMATS team, chaired by Steve Ellenbecker, Energy & Telecommunications Advisor for Governor Freudenthal, for their work on this excellent report.
To have so many different entities come together and complete a study of this magnitude, make recommendations, and outline the next steps to be taken in one year is truly remarkable. You are to be commended!
I am very pleased with the findings and recommendations of the RMATS report. While the report looks at the technical and economic opportunities at a high level, this report provides good basic information to potential developers to move forward with project specific studies.
Being able to move at least an additional 500 megawatts of electricity over the existing Colstrip lines to the Northwest, without significant additional costs, is a very positive result of the study.
In addition, the possibility of adding additional capacity south to Midpoint, Idaho provides another great opportunity for additional generation facilities to be built in Montana and Wyoming.
However, Montana is not the only benefactor from upgraded or new transmission infrastructure. Major load centers throughout the West have the need for additional resource and infrastructure development.
Load demands of urban centers simply exceed generation capabilities.
Our efforts to date to improve electrical transmission are only the beginning. While we have accomplished throughout our studies some possible near term solutions, we must continue to focus on a larger and more comprehensive vision for expanding transmission in the West. We must avoid finding ourselves in a default position relying only on natural gas to provide base load power. Stability and cost effective power for residential and industry will only happen if the West is able to diversify its generation portfolios to include clean coal generation. Increased transmission capacity beyond the scope that has been studied will be necessary to achieve this diversity and stability.
While energy efficiencies, weatherization practices, and development of renewables are very important, they cannot meet the future demand of customers. With that said, a balanced approach is needed for the future energy needs of the region and the west. Montana, and certainly Wyoming, have the necessary resources, both for fossil fuel and renewable generation to meet the demands of the future.
It brings vitality to the region economically and most certainly, better reliability and stability in service and pricing.
We must collaborate, as the RMATS has displayed, in order to move the issues forward.
I would suggest that the standards and protocols of the Western Governors’ Association should be used to assist in the siting and permitting of transmission lines, and streamlining the regulatory process in order to accomplish that goal.
Ultimately, how the Federal Regulatory Energy Commission will view this collaborative effort is extremely important for investment to occur and how that investment will be recovered.
I think everyone in this room knows how critical it is that we move as quickly as possible to find the ways and means to transmit power around the Rocky Mountain Region and to markets throughout the west…and this meeting will go a long way towards that goal.
You have my full support to press ahead with the recommendations and the specific projects.
Thank you. I look forward to our discussion.
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