Who Killed Montana Power?

[donsu]

http://www.cbsnews.com/stories/2003/02/06/60minutes/main539719.shtml

For nearly 90 years, the Montana Power Company exemplified the very best of American capitalism. It provided cheap, reliable electricity for the people of Montana, excellent benefits for thousands of employees and generous, reliable dividends for its stockholders.

Everyone was happy, except for the corporate officers and their Wall Street investment banking firm who decided there was more money to be made in the more glamourous and profitable world of telecommunications.

-snip-

The only people not satisfied with the arrangement were the executives at Montana Power. In 1997, their lobbyist pushed a bill through the state legislature to deregulate the price of electricity and open up the market to competition. It was supposed to be good for the consumers, who could decide who they were going to buy their power from at the lowest possible prices.

But Frank Morrison, a former Montana Supreme Court justice who now represents the stockholders, believes there was another reason. He says Montana Power officials had already decided to get out of the utility business, and were using deregulation to drive up the price of its assets.
-snip-
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there is that evil word again - "deregulate"

[fsbooks]

1. old news but good to keep out there

Montana is only 3 electoral votes, but the people are not happy with the present situation. Maybe it can go Democratic next election. It has a long and proud Democratic tradition, remember Mike Mansfield?

[disgruntella]

3. update and my thoughts (from Montana)

First off, I think there's a chance we'll get a Democratic governor, since Judy Martz was such a dismal failure (even Republicans can't stand her anymore). Brian Schweitzer is running again - http://www.brianschweitzer.com/ - he ran for Senate against Conrad "You Bet!" Burns and only lost by a 3% margin.

However, I don't see any electoral votes from Montana going to the Democrats. There is a proud Democratic tradition but that never seems to come across nationally. (I live in the eastern part of the state, which is more conservative overall, so that's my viewpoint)

As an update to this report (which is good, but out of date) - the successor to Montana Power, Northwestern Energy, is also in bad financial shape, and an investigation may be in the works: http://www.montanaforum.com/rednews/2003/08/15/build/energy/mt-vs-nwe.php?nnn=5

[ibegurpard]

2. Oh this is a WONDERFUL story

Montana Power sold off it's utilities and focused on telecommunications...changed it's name to TouchAmerica. Colossal mismanagement has led to it's current bankruptcy proceedings. It's a travesty and people in Montana are NOT happy about it.