NorthWestern Energy has formally requested approval from Montana regulators to raise rates for its electric and natural gas customers, marking its first rate adjustment petition since its last review two years ago.
NorthWestern Energy submitted its proposal to the Montana Public Service Commission (PSC) for an interim rate increase. The initial request outlines a $2 per month raise for typical residential electricity users and a $5 per month increase for natural gas users, set to take effect in October. Additionally, the company plans a subsequent adjustment in 2025, which would bring the total increase to approximately $9 per month for average electricity users and $9 per month for gas users.
The interim rate increase proposal seeks approximately $22 million more for electric service, covering $50 million for base revenue requirements, $7 million for property tax adjustments, and a $36 million reduction in power costs. For natural gas service, the proposal aims to raise over $21 million.
NorthWestern’s last rate review concluded in October 2023, following previous reviews initiated in 2018 for electricity and 2016 for natural gas. Company officials have said they are now pursuing more frequent rate reviews to mitigate abrupt cost increases, known as “rate shock,” for customers.
NorthWestern Energy serves approximately 405,000 electric customers and 212,000 natural gas customers across Montana. The PSC will now schedule hearings to review and decide on the proposed rate adjustments, a process expected to span about nine months.