Friday, October 15, 2010

ConocoPhillips Fined $69,400 for not complying with the MT RPS standard

The Order was signed yesterday by the commission, and follows almost a 9 month procedural investigation into compliance with the RPS by the PSC.  The relevant PSC docket can be accessed here.

The primary issue for the PSC, was whether the ConocoPhillips Company met the requirements of a "competitive electric supplier" under the MT RPS standard.  The PSC found that they did, as in 2008 they sold almost 138,812 MWh of energy to four industrial customers: Jupiter Sulphur, the Yellowstone Pipeline Company, the ConocoPhillips Pipeline Company, and Stimson Lumber.  As Connco Phillips made little effort to procure 5% of these sales from a renewable source, the MT PSC charged them the applicable administrative penalty of $5.

That is equivalent to the amount energy consumed by about 12,500 Montana homes.  The decision appears to be on the mark, and to my recollection the first time that the administrative penalty for the RPS has been applied. 

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