HB 490 is a crucial step for Montana’s safety and resilience

As general managers of Montana’s electric cooperatives, we are writing to urge our state senators and communities to support House Bill 490. This vital piece of legislation ensures that our state is better prepared to face the growing threat of wildfires and that our member-owned cooperatives can continue to serve our communities without the risk of being held liable for fires outside of their control.

First, HB 490 requires that utilities adopt and implement comprehensive wildfire mitigation plans to actively reduce the risk of wildfires. These publicly available plans include proactive measures to manage vegetation, assess and upgrade equipment, and regularly report on mitigation efforts. In these ways, we are proactively investing in our communities to prevent wildfires from starting in the first place.

Second, in some states, the legal framework allows utility customers to bear the high costs of fires that were not the fault of the utilities through a standard known as strict liability. Under strict liability, a utility can be held responsible for damages caused by wildfires, regardless of whether the utility was negligent or reckless. This means that even if our utility took all necessary precautions and followed safety protocols, we could still be held liable, leaving our members saddled with the costs associated with the wildfire. 

House Bill 490 eliminates strict liability in Montana for utilities that implement a wildfire mitigation plan, and provides a fair legal framework where utilities are held liable for fires caused due to their negligence, but our members are protected from paying the high costs of wildfires where our cooperatives were not at fault.

House Bill 490 is the result of a long-term collaborative effort to address a complex issue facing our state and our utilities. We extend our thanks to bill sponsor Rep. Amy Regier, R-Kalispell, and bi-partisan co-sponsors for carrying this bill. We are proud that HB 490 passed the House of Representatives unanimously and continues to receive strong bipartisan support, underscoring the importance of coming together to find solutions that benefit all Montanans. Although this early success leaves us hopeful, we will have to work diligently to get this bill passed.

It is important to clarify that HB 490 does not shield utilities from liability. We are fully committed to being held accountable if we are negligent, and this bill does not change that. This bill eliminates a strict liability standard where utility is automatically at fault, which would unfairly burden our members with the costs of wildfires where their electric utility was not negligent.

We have also heard some opponents describe the bill as a cost shift. This is simply not true. The bill is an effort to reduce overall costs by preventing wildfires from starting in the first place. By investing in wildfire mitigation, utilities can minimize the risk of wildfires, ultimately saving money for every party involved. Montana’s utilities are ready to make this important investment to protect our communities and our state.

Utilities have an obligation to serve, which means that we are required to provide power to our entire service territories, including areas with high wildfire risk. We don’t get to pick and choose who we serve, and we can’t “drop” high risk members.

HB 490 fairly addresses a real risk that could bankrupt Montana’s locally owned electric cooperatives and leave them unable to continue serving their local communities. It is also important to remember that electric cooperatives are not-for-profit utilities owned by our members. We do not have deep pockets; we only have the pockets of the community members we serve. Our primary goal is ensuring the health and well-being of our communities by providing reliable, affordable and safe power.

We need healthy communities, we need healthy forests, and we need healthy utilities — in the face of growing risks in each area, this bill provides a path forward. We ask our Co-op members and our State Senators to support House Bill 490 and help us create a safer, more resilient Montana.

Gary Weins is CEO of Montana Electric Cooperative’s Association; Mark Johnson is CEO and general manager of Flathead Electric Cooperative.