• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Digital News Updates
  • Home
  • News
  • Politics
  • Business

NorthWestern Energy Reaches Settlement Agreements in Montana Rate Review

April 20, 2025

NorthWestern Energy has reached key settlement agreements with several major stakeholders in its ongoing regulatory rate review for electric and natural gas services in Montana. The agreements, if approved by the Montana Public Service Commission (PSC), would result in modest increases in residential utility bills, helping to fund continued investment in safe and reliable energy infrastructure.

The settlements were reached with the Montana Consumer Counsel, the Montana Large Customer Group—which includes prominent industrial companies such as Ash Grove Cement, Calumet Montana Refining, and Phillips 66—the Federal Executive Agencies including Malmstrom Air Force Base, and retail giant Walmart Inc., which operates 16 stores and employs nearly 5,000 people across the state.

Under the proposed terms, a typical residential natural gas customer using 65 therms per month would see their bill increase by $4.74, or 9.14%, starting July 1, 2024. Electric customers would experience a $4.63 monthly increase, or 4.21%, if both the settlement and NorthWestern’s additional proposals—such as for the Yellowstone County Generating Station, state property taxes, and supply costs—are approved.

“Our customers deserve the most reliable energy service available,” said Brian Bird, President and CEO of NorthWestern Energy. “These agreements reflect a constructive process that balances the need for infrastructure investment with the goal of keeping energy bills affordable.”

The settlement would raise NorthWestern’s annual base revenues by approximately $18 million for natural gas services and $66.4 million for electric services, not including costs related to the Yellowstone County Generating Station. The company’s proposals for that facility and the Power Cost and Credit Adjustment Mechanism (PCCAM) will be addressed in a separate PSC hearing beginning April 22, 2025.

Bird emphasized the ongoing benefits of the Yellowstone County Generating Station, noting that the facility has already helped reduce rates for Montana customers by more than 5% as of December 1, 2024. The plant is expected to deliver an annual rate benefit of $4.1 million.

If NorthWestern’s additional proposals are approved—including a $94.5 million reduction through the PCCAM and a $1.2 million adjustment for property taxes—customers would see a net electric base revenue increase of $14.6 million.

The settlements are based on a 9.60% return on equity for natural gas operations and 9.65% for electric operations, with a 47.8% equity component of the utility’s capital structure, consistent with existing standards.

The Montana Public Service Commission will now review the proposed agreements, with final decisions expected following the upcoming public hearing.

By: DNU staff

Filed Under: Business, Featured

Related Articles:

  • CNBC Ranks North Dakota Most Business-Friendly State for Fourth Straight Year
  • After completing innovation and management graduate program, Montana State alumnus launches food-focused startup
  • Stocks End Week Near Records as Rate-Cut Bets Bolster Gains
  • Kodak Faces Debt Deadline Amid “Going Concern” Disclosure
  • 1M homes to be powered by Montana coal mine expansion
  • Montana Commerce Department Launches New Loan Program for Rural Businesses

Primary Sidebar

Digital News Updates Logo

Recent News Posts

  • Montana Commerce Department Launches New Loan Program for Rural Businesses
  • Montana DEQ Seeks Public Comment on Draft Coal Mine Bonding Guidance
  • New business-focused hospitality degree to help Montana tourism industry
  • CNBC Ranks North Dakota Most Business-Friendly State for Fourth Straight Year

Recent Politics Posts

  • Montana Delegation Urges President Trump to Impose Tariffs on Russian Palladium
  • Montana AG Leads 22-State Coalition Asking Supreme Court to Hear Parental Rights Case
  • Governor Little Signs Executive Order to Streamline State Government
  • Montana GOP Executive Director Tyler Newcombe Steps Down; Party Names New Communications Director

Recent Business Posts

  • Montana Commerce Department Launches New Loan Program for Rural Businesses
  • CNBC Ranks North Dakota Most Business-Friendly State for Fourth Straight Year
  • Bozeman-Based Texbase Launches Advisory Board,
  • Black Hills Corp. and NorthWestern Energy Announce All-Stock Merger

Copyright © 2025 Digital News Updates, All Rights Reserved.