PSC dispute escalates in federal court as documents surface
Four PSC commissioners were in Missoula court as Brad Molnar fought his lockout from Helena, turning an internal rift into a public test of utility oversight.
Four of the five Montana Public Service Commission members were in a Missoula federal courtroom Thursday morning as former president Brad Molnar challenged the discipline that pushed him out of the Helena building. What began as an internal fight over workplace conduct has widened into a public clash over who controls Montana’s utility regulator, with real consequences for ratepayers, oversight, and trust in the commission’s decisions.
The dispute has been building since at least July 2025, when Molnar came under investigation for workplace conduct. By September, the conflict had reached Lewis and Clark County District Court, where a judge first blocked Gov. Greg Gianforte from suspending Molnar before later allowing the governor to consider suspension. In October, the five-member elected Republican commission voted 3-2 to remove Molnar as president and later replaced him with Jeff Welborn.
Newly released documents have added detail to what the commission says happened behind the scenes. A December 2025 response-team decision said Molnar used his position as president to stall the inquiry by threatening retaliation, refusing to pay investigative expenses, and trying to undo investigator contracts. In May 2026, commissioners adopted a 28-page report on a 3-2 vote that cited repeated unwelcome sex-based remarks, unprofessional behavior toward staff, and retaliation against people who complained or investigated the complaints. The report recommended that Molnar work remotely and stay away from PSC offices until he apologized and agreed to follow the agency’s internal code of conduct.
Molnar has argued in federal court that the ban from the PSC building violates his First Amendment and Fourteenth Amendment rights. He also says the restriction harms the 250,000 constituents in his district. Judge Donald Molloy scheduled the June 18 hearing in Missoula after Molnar sought a preliminary injunction to regain access to the Helena office.
The stakes reach beyond one commissioner. The Public Service Commission oversees utility issues that affect households across Lewis and Clark County and the rest of Montana, from reliability questions to regulatory decisions that shape public confidence in power and service. Separate reporting has said the PSC has paid $330,000 in settlements over the past three years in lawsuits filed by former employees, deepening scrutiny of an agency already struggling with staff turnover and public infighting.
As the case moves through federal court, the commission’s internal breakdown is no longer just a Capitol drama. It is now a test of whether Montana’s utility regulator can carry out its core job without losing the trust of the public it serves.
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