NorthWestern Energy has reached settlement agreements in its Montana regulatory rate review process for both electric and natural gas services. The company collaborated with several major stakeholders, including the Montana Consumer Counsel, the Montana Large Customer Group, the Federal Executive Agencies, and Walmart Inc. These groups represent a range of interests from large industrial customers to federal institutions and major retailers operating in the state.

If the Montana Public Service Commission approves the settlements, residential customers will experience modest increases in their utility bills beginning July 1, 2024. For natural gas customers, the average bill is expected to rise by $4.74 per month, reflecting a 9.14% increase. Electric customers would see an increase of $4.63 per month, or about 4.21%, provided the Commission also approves NorthWestern's proposals for the Yellowstone County Generating Station, state property taxes, and supply costs.

NorthWestern Energy President and CEO Brian Bird emphasized the importance of maintaining reliable energy services while managing costs. He stated that the company is committed to operating safely and efficiently, 24/7, and these settlements support continued investment in energy infrastructure. According to Bird, the agreements reflect a shared priority to ensure safe and dependable energy for communities across Montana.

Financially, the approved settlements would increase NorthWestern’s annual natural gas base revenues by around $18 million and electric base revenues by about $66.4 million, excluding the Yellowstone County Generating Station. Including the generating station, the total base revenue request is $110.3 million. However, when factoring in NorthWestern's proposed reduction to its Power Cost and Credit Adjustment Mechanism ($94.5 million) and a $1.2 million property tax tracker, the net impact on electric customer bills would be from a $14.6 million increase in revenues.

The natural gas settlement is based on an authorized return on equity of 9.60%, while the electric settlement maintains a 9.65% ROE, both with a capital structure equity ratio of 47.8%.

Additional agreements include a proposed Standby Tariff between NorthWestern and the University of Montana for backup power services, and a settlement with the Northern Cheyenne Tribe concerning involvement in the transition planning for the Colstrip Plant. The Tribe has acknowledged NorthWestern's majority ownership of the plant as a commitment to regional energy stability and environmental stewardship.

Proposals regarding the Yellowstone County Generating Station and flow-through supply cost recovery remain unresolved and will be addressed in public hearings beginning April 22, 2025, before the Montana Public Service Commission.