HELENA — NorthWestern Energy has announced its intention to seek approval from Montana regulators to raise rates for electric and natural gas customers, approximately two years after their last rate review.
This week, the company officially submitted a request for a rate adjustment to the Montana Public Service Commission. They are initially proposing an interim rate increase of about $2 per month for a typical residential electrical user and $5 per month for a typical natural gas user, to take effect in October. Additionally, they plan to propose an additional increase to take effect in 2025, bringing the total to around $9 per month for an average electrical user and $9 per month for a gas user.
Crystal Lail, NorthWestern’s chief financial officer, cited inflation as a driving factor behind the need for the rate increase, pointing to rising costs for materials, labor, and interest rates.
Lail highlighted that the company has invested around $1 billion in its infrastructure, with a significant portion going towards projects like the Yellowstone County Generating Station, a natural gas-fired power plant near Laurel.
NorthWestern’s request for an interim rate increase aims to raise nearly $22 million more for electric service, including additional funds for base revenue requirements, property taxes, and reduced power costs. The interim increase would also generate over $21 million for natural gas service.
NorthWestern last initiated a rate review in 2022, with the Public Service Commission approving a final order in October 2023. Lail mentioned that the company is conducting rate reviews more frequently in order to mitigate “rate shock” for customers.
Lail emphasized that NorthWestern values affordability concerns and encourages customers facing financial difficulties to reach out for assistance. The PSC will now schedule hearings for the proposed rate increases, with the final decision expected to take about nine months.
NorthWestern currently serves approximately 405,000 electric customers and 212,000 natural gas customers in Montana.
