Montana PSC Faces Scrutiny Over Unpaid $25K Legal Bill

by Chief Editor

The Montana Public Service Commission (PSC) has not yet paid a $25,000 invoice to the law firm Michael Best & Friedrich LLP, which it hired at a rate of $700 an hour. Commissioner Brad Molnar expressed concern Tuesday about the delay in payment.

PSC Intervention and Investigation

In November, the PSC voted to hire outside counsel to intervene in a case before the Federal Energy Regulatory Commission (FERC). The case centers on NorthWestern Energy’s handling of shares it acquired from Puget Sound Energy at the Colstrip power plant.

The Michael Best & Friedrich LLP firm filed a motion in early December arguing that FERC should investigate NorthWestern Energy for potentially evading the law in its handling of the new shares at Colstrip. The firm, based in Washington, D.C., states it has experience representing Fortune 500 clients and employs a top legal expert on FERC matters.

Did You Know? The PSC’s roughly $6.2 million budget allocates an estimated $4.7 million to personnel costs for 41.5 positions.

As of January 15, the law firm had received no payment for its December 15 invoice. A PSC spokesperson initially did not respond to questions about the delay, but later stated that “payments cannot be performed outside of an executed contract” and that commission leadership was unaware of the timing of the work performed relative to the contract.

Molnar recommended the firm based on his prior experience with the attorney’s work on federal regulatory issues. He also noted that the $700 hourly rate was the lowest bid received after one firm withdrew due to the case’s complexity.

Budget Concerns and Other Contracts

Molnar expressed concern that the payment delay could hinder the PSC’s ability to secure legal support in the future. He also indicated the PSC may be overextended in its employ of contracted services. Commissioners were reportedly asked to contribute from their travel budgets to cover contracted expenses, but were also informed the PSC had outstanding debts.

The PSC has also contracted with other firms. In July and August, Communications and Management Services (CMS) received $12,750 for consulting services. Christensen & Prezeau has been paid $24,054.75 as of last month, and Boone Karlberg received $17,577.91 in January 2026.

Expert Insight: The PSC’s reliance on contracted legal services, coupled with reported budget constraints, suggests a potential tension between the agency’s regulatory responsibilities and its financial resources. Delays in payment to outside counsel could impact the agency’s ability to effectively pursue its mandate.

Boone Karlberg represented Commissioner Jennifer Fielder in a dispute regarding Governor Greg Gianforte’s authority to investigate a complaint filed by Fielder against Molnar. A court later found that Gianforte did have the authority to investigate and that Molnar was obligated to cooperate.

The PSC withdrew from the original FERC case in December, citing errors in its filing, but plans to continue its investigation at the state level. The Michael Best & Friedrich LLP firm is not currently listed as having been paid by the PSC in the 2026 fiscal year.

Frequently Asked Questions

What prompted the PSC to hire outside counsel?

The PSC voted in November to hire outside counsel to intervene in a Federal Energy Regulatory Commission case involving NorthWestern Energy’s acquisition of shares at the Colstrip power plant.

What is the status of the payment to Michael Best & Friedrich LLP?

As of January 15, the PSC had not paid the law firm’s $25,000 invoice. The PSC spokesperson stated the invoice is under review due to questions about contract execution.

Has the PSC contracted with other firms recently?

Yes, the PSC has contracts with CMS, Communications and Management Services, Christensen & Prezeau, and Boone Karlberg, and has made payments to those firms for various services, including investigation and legal representation.

Given the ongoing budget concerns and multiple contracted services, how will the PSC balance its regulatory duties with its financial constraints?

You may also like

Leave a Comment