Molnar challenges suspension from Montana PSC, lawsuit filled to pause NorthWestern Energy merger

Molnar has been accused of harassment of PSC staff, sex discrimination and retaliatory behavior. He’s denied the allegations and argued that the removal is politically motivated, happening around the same time as a proposed NorthWestern Energy merger.

“The governor is not going after Brad Molnar, however. He's going after Montana ratepayers. Brad Molnar just happens to be standing in the way,” said Mathew Monforton, a lawyer representing Molnar.

Molnar is seeking a preliminary injunction that would allow him to return to the PSC while they challenge the suspension. Monforton further claims the suspension is an economic burden on Molnar and is causing “irreparable harm” because Molnar cannot participate in PSC hearings and debates.

“We do need the preliminary injunction, because no matter how fast the court is able to accommodate us, there's no way that there's going to be a judgment entered before the one-year suspension period is over,” Monforton told reporters.

Gianforte officially suspended Molnar a month ago for one year, citing “unprecedented behavior” based on the investigation report into the alleged misconduct. 

“I recognize a suspension of an elected official by a governor is unprecedented in state history,” wrote Gianforte in a July 9 email to the PSC Response Team and Molnar. “But given the unprecedented behavior, I must act and so conclude that the suspension of Commissioner Molnar for one year is warranted, effective immediately (without pay), with his return contingent on the completion of trainings required of him. Even though the PSC members are elected, the governor has the authority to suspend a member with cause.”

At the Friday hearing, lawyers for the PSC and the Governor’s Office argued against the suspension being lifted.

Dale Schowengerdt, who is representing the governor in the matter, agreed that Molnar has a right to challenge the suspension in court, but noted temporary suspension is common in personnel discipline matters. 

“What he does not have is a right to occupy the office while he mitigates this case, Montana has never given a suspended officer that in this court should not be the first,” said Schowengerdt.

According to court documents, the first allegations against Molnar were reported in the summer of 2025. Molnar was the PSC president at the time. In the following months, tensions continued to rise at the agency. In September, PSC Vice President Jennifer Fielder asked Gianforte to suspend Molnar for allegedly interfering with the investigation. Gianforte initially denied the request.

Natasha Jones, a lawyer representing the PSC, alleged that Molnar did not participate in meetings attempting to rectify the situation, and instead litigated his grievances in the public forum.

“Instead, what he did is abuse his position of power as the president of the PSC Commission by retaliating against those that were involved in the process and those that had to make complaints against him,” said Jones.

Jones added that allowing Molnar back would harm the employees who filed complaints against him.

Molnar has pushed back against the allegation, claiming he wanted his lawyer to participate in any conduct meeting.

In May, the PSC voted 3 to 2 to ask Gianforte to suspend Molnar. After the suspension, Gianforte solicited candidates to temporarily serve on the commission in Molnar's place. Five candidates are currently under consideration. 

Monforton told reporters the judge will likely rule on the preliminary injunction by the Aug. 20, 2026 deadline for public comment on the replacement candidates.

The suspension of Molnar comes around the same time PSC is reviewing a multi-billion-dollar proposed merger between NorthWestern Energy and  Black Hills Corp.

Molnar is the PSC's most senior member and is now serving his third term. He has been critical of the proposed merger and alleges whoever the governor replaces him with will favor the merger.

“Who he selects – If I'm lying, I'm dying and I think you know I'm true – will have to agree with [Gianforte] before he puts him in there,” said Molnar on Friday. “On the question of the large customer load tariff, which is all data centers and the merger, he's not going to put somebody in there and wait and see what happens.”

Also on Friday, 350 Montana and the Montana Farmers Union filed a lawsuit calling for a pause on all consideration of the merger until the Molnar case plays out.

Monica Tranel, a lawyer representing the organizations, told reporters on Friday that Molnar’s experience, having served ten years with the PSC, has been critical to ensuring the merger is properly scrutinized.

“Our position is that Commissioner Molnar's voice as part of the deliberative process that is absolutely essential to a fair outcome,” Tranel noted. “Commissioner Molnar belongs in that deliberative process. His questions matter, and it changes. As the commission's lawyer said this morning, his presence changes the nature of the conversation.”