Every Montanan knows the experience of opening the utility bill and wondering how the
rates were decided. Paying those bills is a challenge for many Montana families.
To insure the fairness of rates, Montanans elect the Public Service Commissioners,
charged with reviewing submissions from utilities and arriving at rate decisions that allow a
fair return for the utility and a justifiable price for consumers.
March 5 the PSC voted four to one to take a step that jeopardizes that assurance. The
five-member, all Republican commission voted to repeal a 2010 rule requiring utilities to
disclose the salaries of their highest-paid executives.
The move stems from a pending lawsuit filed by Mountain Water Co. of Missoula, recently
acquired by the global asset management firm the Carlyle Group. The firm argues the PSC
has no right to declare the executive salaries public information.
Though no ruling has been issued by the district court, the PSC majority said the privately
owned firm, a state regulated monopoly, has a right to keep those salaries secret.
Bozeman’s Roger Koopman said, “This is Montana, and I think here in Montana we need
to say privacy matters.”
Fellow commissioner Travis Kavulla of Great Falls sounded the lone dissent, saying
public utility monopolies are subject to a different degree of scrutiny than totally private firms.
We agree and we are confident the state’s Supreme Court would also agree.
The citizens of Missoula have granted Mountain States the right to provide an essential
commodity – water. Knowing ‘whiskey is for drinking and water is for fighting,’ Montanans
have reserved the right to regulate the companies that get to monopolize our public water
One key way the PSC ensures costs incurred by utilities and passed on to consumers
through rates are prudent is by knowing how much the executives are paid. We rightly
expect our PSC to consider that. Under the action taken last week, the commissioners would
not have that information.
This is not the first time the PSC has tried to hide information from the public. Back in 2003
the Supreme Court ruled against a PSC secrecy effort in Great Falls Tribune v. Public
The court wrote, “…non-human entities do not enjoy privacy rights under the right of
privacy provision of the Montana Constitution.” It also noted that documents filed with public
agencies such as the PSC are presumed to be public.
In a special concurrence to the unanimous decision, Justice James C. Nelson wrote,
“Following the enactment of the federal Bill of Rights, James Madison wrote: ‘popular
government without popular information or the means of acquiring it, is but prologue to a
farce or a tragedy or perhaps both.'”
The justice went on to say, “If the public is to have any ability to know and understand how
its government is exercising its remaining control over utilities, then individuals and
organizations must have access to information that is filed by these utilities with government
agencies, including the PSC.”
Justice Nelson went on to eloquently express why the media should be able to access
information on behalf of the public.
“Though they have the right to do so, few people struggling to make a living and support
their families have the time and the resources to comb through volumes of data and
documents filed with the PSC and to fight with the utilities over what is confidential and what
is not. Much less do these Montanans have the expertise to understand how this information
may affect their lives and finances…I submit that the public’s right to know and another
fundamental constitutional right – freedom of the press – are inextricably intertwined in cases
such as this,” wrote Justice Nelson.
It’s not too late to tell the PSC majority they are wrong.
The proposed rule change will be published later this month in the state’s public register.
A public comment period and public hearing will follow. Speak up and tell the PSC not to
bow to corporate pressure that tramples the public’s rights.
Jan Anderson, Publisher