Marketing Montana’s Energy Industries€¦ · Acting on Governor Bullock’s Energy Blueprint....

Marketing Montana’s Energy IndustriesA presentation requested by the Energy and Telecommunications Interim Committee and fulfilled by the Montana Office of Tourism and Business Development

Sean Becker – Division AdministratorMontana Office of Tourism and Business Development

Tom Kaiserski – Bureau ChiefResearch and Information Services September 29th, 2017

ENERGY & TELECOMMUNICATIONS (ETIC) – SEPTEMBER 2017MT DEPARTMENT OF COMMERCE SLIDE 1

MONTANA DEPARTMENT OF COMMERCE

The Department of Commerce is the marketing engine for the State of Montana. Montana’s energy industry is connected to every sector of the state’s economy either through production or consumption. Thus, enhancing this key industry enriches the economy statewide.

SLIDE 2ENERGY & TELECOMMUNICATIONS (ETIC) – SEPTEMBER 2017MT DEPARTMENT OF COMMERCE SLIDE 2

Research and Information Services BureauThe Research and Information Services (RIS) Bureau obtains, actualizes, and provides quality information to the public and private sectors for the economic enhancement of the State of Montana.

• Industry Analysis• Market Analysis• Targeted Economic Development• Private to Public Sector Business Facilitation• Data Collection and Analysis• Dissemination of Quality Information• 2020 Census• Statutorily mandated central depository of information - MCA 90-1-109


Thank you for the opportunity to discuss our work. We take great pride in delivering economic benefit to the state and its citizens.


Today’s Topics:

Marketing and Developing Montana’s Energy Sector• Montana Energy Missions• Montana Energy Value Proposition• Load Growth through Industrial Development


Acting on Governor Bullock’s Energy BlueprintThe Departments of Commerce and Environmental Quality are supporting Governor Office staff in implementing the Energy Blueprint.


Energy MissionsExecutive branch staff have traveled to key jurisdictions in the west to solidify and enhance the state’s presence in these energy markets.

Oct. 2016 - AlbertaFeb. 2017 - Seattle, PortlandJune 2017 - Salt Lake, Spokane, PolsonOct. 2017 - Jackson (WY)


Acting on Governor Bullock’s Energy BlueprintThe Department of Commerce as well as Environmental Quality are supporting Governor Office staff in implementing the Energy Blueprint.


Energy MissionsOct. 2016 - Alberta

Participants:• Alberta Ministry of Energy, Alberta Electric

System Operator (AESO), NaturEner USA

Outcomes:AESO is looking to relieve transmission constraints on the Montana Alberta Tie Line and that will increase Montana market access to the north and west in Canada




Energy MissionsFeb. 2017 - Seattle, Portland

Participants:• Gov. Inslee staff (WA), WA Public Utility

Commission, Puget Sound Energy• Gov. Brown staff (OR), OR Public Utility

Commission, Portland General Electric

Outcomes:Open discussions regarding operations at Colstrip, development of a Montana Energy Value Proposition




Energy MissionsJune 2017 - Salt Lake, Spokane, Polson

Participants:• Gov. Herbert staff (UT) and Rocky

Mountain Power• Avista Corporation• Energy Keepers

Outcomes:Lines of communication improved with our regional energy partners; RMP plans to invest $2.2 billion by 2020 into wind and transmission




Energy MissionsOct. 2017 - Jackson (WY)

Participants:• Wyoming Infrastructure Authority• Relevant industry and utilities may also

participate

Outcomes:Meeting yet to occur. Topics to be discussed will include: operation of Colstrip, transmission development in WY, target markets of MT & WY electrons

Montana Energy Value Proposition


Montana is an integral part of one of the most diverse & reliable energy systems in the world.A backbone of developed hydro.Regional transmission spanning thousands of miles.Fossil fuel, baseload generation.A rich diversity of renewable energy.

This system is the envy of the world…but it is changing.





Markets & DevelopmentsFour factors:• Resistance to carbon• Complexity of renewables• Flat Load Growth in US Markets• Difficulty in developing linear infrastructure




Markets & DevelopmentsResistance to carbon• Montana’s largest, existing energy markets are moving away from

carbon emitting generation• Portland General Electric retirement of Boardman coal plant• Puget Sound Energy announces Green Direct program & Centralia

closure in 2025

Canadian Markets• AB: Coal phase out & 30% RPS by 2030 and requires 5000MW of new

renewable generation• SK: Coal phase out by 2030, 50% RPS by 2030




Markets & DevelopmentsComplexity of increased renewable generation• Continued operation of renewable facilities is providing data and

information needed to maximize system efficiencies• Variability and capacity factors are being addressed through regional

diversity• An increase in available capacity will also allow a more integrated

regional system to respond to demands and meet reliability requirements




Markets & DevelopmentsFlat Load Growth in US Markets• Conservation, efficiency, and other factors have affected energy demand

and load growth in the PNW • Increased natural gas supplies and low prices are influencing the market




Markets & DevelopmentsNew transmission is increasingly difficult to develop.• Bonneville Power Administration abandons I-5 transmission line• BPA is moving away from “the traditional approach of primarily

relying on new construction to meet changing transmission needs, to embracing a more flexible, scalable, and economically and operationally efficient approach to managing our transmission system,” BPA CEO Elliot Mainzer




Markets & DevelopmentsTakeaways:• Flat Load Growth in US Markets

• Replacement power needed for retiring CO2 emitters• Resistance to carbon

• Diversify MT’s product portfolio with caveat that access to those products is tied to Colstrip operations

• Complexity of renewables• MT is the diversity that the PNW system needs

• Difficulty in developing linear infrastructure• Solidifies need to maximize current system




Verification of Montana Assets & ResourcesMontana renewables verified with increasing data• MT wind has a 64% contribution credit to PNW load demand compared

to Columbia Gorge wind’s 8% contribution credit• New models show the Gordon Butte Pumped Hydro project

outperforming natural gas in frequency response, regulation up/down, spinning reserve, non-spinning reserve.

Possible transmission capacity upgrades available• M2W Project would increase capacity within the BPA transmission

system from the Townsend west• Colstrip 500kV Upgrade would increase capacity within the Colstrip

transmission system from Townsend east• No new siting, majority of environmental review complete• Colstrip 3 & 4 provide necessary inertia to line operations




Verification of Montana Assets & ResourcesThe case for Colstrip• Colstrip 3 & 4 are some of the best coal gen assets in the nation• Colstrip 3 & 4 provide necessary inertia to 500kV line operations• PRB coal is the best quality coal for electric generation in the US• US DOE sees Colstrip as an ideal location for development of CCUS

technologies - Governor is talking to Talen Energy about current DOE FOA to fund large-scale pilots for transformational coal technologies

Colstrip and the region• PNW jurisdictions understand the role the generation facility plays in

maintaining the reliability of the current grid system.• RIS meeting with the Coal Country Coalition on diversification• RIS to meet with the Wyoming Infrastructure Authority to discuss

future coal operations in the PRB, and leveraging regional transmission




Taking the LeadWith strategic investment MT, WA, & OR can build an energy system that is the example for the west, the country, and the globe.

• A backbone of hydroelectric generation• Coal generation with potential CCUS• High capacity Montana wind generation• Pumped Hydro firming and storage• Increased transmission capacity – upgrade

existing and exploring new build opportunities• Columbia Gorge wind generation• Solar generation• Utilization of energy imbalance markets• Utilization of higher frequency scheduling




Taking the LeadThe department is engaging in jurisdictions to the west, north, and south through the Governor’s Energy Missions.

As opportunities present themselves, the department is positioning the state at the head of the regional conversation with key energy partners.

The state has an incredible opportunity to provide a unique portfolio of energy resources that will benefit expanding markets.




Expanding Montana’s Energy DemandThe bureau’s industry development program is working to attract substantial commercial and industrial load growth to the state.

Load growth development targets include:• Data Centers• Light Manufacturing• Ag Processing• Refining• Photonics• And more…

MONTANA DEPARTMENT OF COMMERCEResearch and Information Services Bureau

The department and RIS are actively targeting industry companies to increase their business presence in Montana. Proactively working to attract industries best suited to the state is a core duty of the bureau.

Increasing Electric Load: Data Center DevelopmentA report was published in 2014 by the department which found multiple benefits to operating data centers in Montana. This information helped to solidify a recent development in the state.

Contents include:• Understanding the Industry• Market Analysis• Case Studies• Montana’s Competitors• SWOT Analysis

TARGETED INDUSTRY DEVELOPMENT

Large data centers generally need 60

megawatts of power 24/7/365.



The department and RIS are actively marketing to companies in targeted industries. Montana is often overlooked by various industries; the department’s award winning marketing division helps to put Montana in front of key audiences.



Direct Marketing


The department and RIS are actively targeting industry companies to increase their business presence in Montana. Proactively working to attract industries best suited to the state is a core duty of the bureau.

Increasing Electric Load: Ag ProcessingA report published in 2014 by the department highlighted benefits to operating a specialty malt house in Montana. This information lead to Montana Craft Malt’s $15M development in Butte.

Contents include:• Understanding the Industry• Market Analysis• Factors of Development• Case Studies• Supportive Ventures• Montana’s Competitors• SWOT Analysis• And more…


Ag processing is often a targeted industry by RIS

as the state’s assets generally meet the

industry needs.



The department and RIS are actively targeting industry companies to increase their business presence in Montana. Likewise the department rapidly responds to business inquiries about operating in the state.

Rapid Business Inquiry Response: RefiningA large, international LNG processor showed interest in establishing a Montana LNG processing facility. The department quickly responded with a full analytical document.

Contents include:• Available, qualified workforce• Tax Environment (2015 = 6th Best Business Tax Climate)• Tax Incentives• Financing Opportunities• Local/State Market Analysis• State Resources• Local development partners and industry contacts



MONTANA DEPARTMENT OF COMMERCEMontana Office of Tourism and Business Development

Contributions to Industry PublicationsCoal People Magazine Bakken Oil Business Journal


Maintaining an industry presence is essential for a small state like Montana. The bureau contributes to industry publications by authoring articles and occasionally purchasing advertising.


Contributions to Industry Reports



The American Jobs Project (AJP) is a nationally focused, research-based project dedicated to U.S. economic growth through advanced industries.

AJP contacted the bureau in fall 2016. Discussions with Tom Kaiserski led to the research, findings, and publishing of this report. Third party validation of the this nature is extremely beneficial in attracting quality industry developments into the state.

“Montana is well positioned to benefit from rising global demand for photonics given its existing cluster of over thirty companies, its leading research university with photonics expertise, its affordable cost of living, and its attractive quality of life.”


Utilizing Research & Information for Industrial Development



RIS extended an invitation to the report’s primary author. Kate Ringness, to attend the Innovate MT Symposium in Billings, and a meeting with the Montana Photonics Industry Alliance in Bozeman. Mrs. Ringness discussed the findings of the report and created list of top actions items with industry leaders.Build out the Montana Supply ChainSurvey Existing Photonics Companies in MontanaConnect Companies to BlackstoneFacilitate Equipment SharingPut Montana on the Map via StrategicSecure Additional Funding for the MBRCTPlan an event to which all supporting players in photonics attendFacilitate Grant Writing/ Collaboration for photonics research

Thank you.

Sean Becker – Division AdministratorMontana Office of Tourism and Business [email protected]

Tom Kaiserski – Bureau ChiefResearch and Information [email protected]

Montana Office of Tourism and Business Development406.841.2870


mailto:[email protected]

mailto:[email protected]

Sean Becker – AdministratorMontana Office of Tourism and Business Development

• Bachelor’s Degree in Psychology• Master’s Degree in Industrial & Organizational Psych • 17 years experience in market research, finance, and

economic development• 5 years operating a manufacturing business in Gallatin

County• 10 years as the Research Director of a research based

market assessment group. • Former Mayor of Bozeman• Retired president of the Northern Rocky Mountain

Economic Development District• Former member of Governor Bullock's Economic

Development Advisory Council• City of Bozeman Economic Development Advisory Board

Member• Bozeman Area Chamber of Commerce Board Member• Small Business Development Professional for the Montana

Community Development Corporation • Graduate of Leadership Montana, The National

Development Council Economic Development Finance Professional Program and serves on numerous public and private boards


Tom Kaiserski – Bureau ChiefResearch and Information Services

• Bachelor’s Degree in Geography, Montana State University

• 30 year’s-experience in Montana economic development and planning

• Past president of the Western Interstate Energy Board • Certified Economic Development Finance Professional

by the National Development Council• Current proxy member of the Montana Agriculture

Development Council• Member of the MDOC Grant and Loan Review

Committee• Served as a member of the Montana Board of Research

and Commercialization Technology • Former Stillwater County Planning Director • First Economic Development Coordinator of the

Beartooth RC&D Economic Development District• President of The Julius Foundation, a Helena based

501(c)3 charitable organization


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Marketing Montana’s Energy Industries€¦ · Acting on Governor Bullock’s Energy Blueprint....

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