A federal judge in Oregon issued a ruling that affects hydropower operations on the Columbia River system. The State of MT has appealed the ruling.
April 29, 2026 Update: The State of Montana, along with the State of Idaho, federal agencies represented by the U.S. Department of Justice, the Public Power Council, and the Inland Ports and Navigation Group, have appealed the ruling to the U.S. 9th Circuit Court of Appeals.
Flathead Electric Cooperative (FEC) today expressed serious concern following the U.S. District Court’s decision to grant the majority of the plaintiffs requests in a preliminary injunction altering operations of the Federal Columbia River Power System (FCRPS).
The ruling requires expanded spill and operational changes at multiple Columbia and Snake River dams beginning this spring. These changes will reduce hydropower generation during critical months and limit the system’s operational flexibility. The court did order reservoir elevations at 2025 operating levels, which provide a larger operating range than the plaintiff’s request. It also adopted several proposals from the Public Power Council. However, even with these recognitions of public power concerns, the ruling will adversely affect Flathead Electric and Public Power in Montana.
“For our members in Northwest Montana, this decision has direct affordability implications,” said FEC CEO and General Manager Mark Johnson. “Flathead Electric purchases a significant portion of our wholesale power from the Bonneville Power Administration. When hydropower output from the federal system is reduced, BPA must replace that lost generation with higher-cost market purchases. Those costs ultimately flow through to Montana consumers.”
BPA markets power from the federal dams at cost to public power utilities across the Northwest. Additional spill requirements or reservoir constraints reduce generation and capacity of the federal dams, which directly impacts BPA’s cost structure. The result puts upward pressure on future electric rates because it increases BPA’s reliance on wholesale market power purchases to meet regional load requirements. Last minute energy purchases are often at higher and more volatile prices than the federal hydropower system, especially during extreme weather events when regional power prices spike. BPA has warned that the judge’s mandated operational changes could significantly raise rates for public power utilities in the Pacific Northwest.
“Montana co-ops like ours don’t have shareholders—we have members,” Johnson said. “If BPA’s costs rise because the federal hydro system is constrained, those increases show up in the rates paid by families, farmers, and small businesses here at home.”
Operational flexibility is particularly critical during cold snaps when electricity demand can spike. Reducing hydropower generation and flexibility during these periods by spilling water as required by this decision increases the risk of energy shortfalls and price volatility. Even before this ruling, regional reliability assessments show an increasing risk of shortages during peak events, which is of particular concern during winter cold snaps for utilities like Flathead Electric.
Flathead Electric emphasized that its members support fish recovery and responsible environmental stewardship. However, the Cooperative believes operational changes must carefully balance environmental objectives with reliability and affordability for Northwest communities.
“We support salmon recovery,” Johnson said, “but solutions that significantly reduce carbon-free hydropower and increase market dependence come with real economic consequences for western Montana.”
FEC noted that federal defendants have requested a stay of any injunction to allow for further legal review and potential negotiations outside the courtroom. The Cooperative applauds the State of Montana for joining appellants, and will continue working with BPA, Montana leaders, and regional partners to assess impacts and advocate for Montana ratepayers.
“Our responsibility is to protect the reliability and affordability our members depend on,” Johnson added. “We will remain actively engaged to ensure Montana’s interests are not overlooked.”
