Sep. 20--HELENA -- Since 2004, Idaho has seen 21 new small wind-power projects and a half-dozen other small independent power projects gain contracts to sell their output to local utilities, boosting rural development in the state.

In Montana, it's a different picture: During that same time, only a few small renewable-power projects have been able to obtain contracts with local utilities and get off the ground.

State and federal laws require utilities like NorthWestern Energy to buy power from qualifying independent, small projects that churn out renewable power, like wind, hydro, geothermal or solar. The power becomes part of the electricity that NorthWestern sells to its 320,000 retail customers.

But the state Public Service Commission must enforce those laws and set prices the utilities pay for the power. Developers say that isn't happening with any consistency in Montana.

"It all comes down to what the rates are set at by the PSC," said Ted Sorenson, who has developed small hydroelectric projects in Idaho and Montana. "It's price-driven. The rates have been too low in Montana to have any significant development."

Potential developers also are frustrated by having to wait months or years for the PSC to resolve price-related issues on these small projects, and say they're now looking to other states for opportunities.

"I really think the banks are going elsewhere," said Brett Kenfield, a Vancouver, Wash., accountant who's trying to develop a small wind power project in north-central Montana. "They're not going to wait around and spend their time and money to get the information, when they can go elsewhere they actually have the numbers and are able to finance a project."

Some Montana public service commissioners talk tough and say the five-member PSC should be more aggressive on the issue.

"We need a consistent and standard policy, so that anyone who does a (qualifying small) project has a pretty good idea of what they're going to get paid," said Commissioner Ken Toole, D-Helena. "And I don't think they have that right now."

Yet they also say the PSC must be cautious and not set prices that don't overcharge consumers. "We're worried about paying too much for power," said Commissioner Gail Gutsche, D-Missoula. "We want to get the most reasonable, fair price." Regardless of what individual commissioners think and say, the PSC's action on setting rates and settling other issues for these projects has been notoriously slow.