Business
NorthWestern Energy reaches multiparty settlement agreement in Montana Electric and Natural Gas Regulatory Rate Review
SIOUX FALLS, S.D. and BUTTE, Mont., April 03, 2023 (GLOBE NEWSWIRE) -- NorthWestern Corporation d/b/a NorthWestern Energy (Nasdaq: NWE) and certain parties
About this update from Northwestern Energy Group, Inc.
[{"type":"text","content":"SIOUX FALLS, S.D. and BUTTE, Mont., April 03, 2023 (GLOBE NEWSWIRE) -- NorthWestern Corporation d/b/a NorthWestern Energy (Nasdaq: NWE) and certain parties reached a settlement agreement in its Montana electric and natural gas regulatory rate review that has been submitted to the Montana Public Service Commission (MPSC) for its consideration. In addition to NorthWestern, settling parties include the Montana Consumer Counsel, the Montana Large Customer Group, the Federal Executive Agencies and Walmart Inc. The settlement includes, among other things, agreement on electric and natural gas base revenue increases, allocated cost of service, rate design, updates to the base amount of revenues associated with property taxes and electric supply costs, and regulatory policy issues related to requested changes in regulatory mechanisms. If approved, the settlement agreement is designed to increase annual electric base revenues by approximately $67.4 million, and increase annual natural gas base revenues by approximately $14.1 million. The settlement is based on an authorized return on equity of 9.65% for electric operations and 9.55% for natural gas operations, which are consistent with current authorized ROEs, and a 48% equity component of the capital structure. “Working together, the settling parties reached a constructive outcome to present to the Montana Public Service Commission that, if approved, balances the best interests of our Montana customers and our shareholders,” said NorthWestern Energy President and Chief Executive Officer, Brian Bird. “Our Montana customers are best served by a financially sound energy company capable of making the substantial investments required for reliable, safe service.” NorthWestern’s current natural gas and electric rates were last set using cost information from 2015 and 2017, respectively. Since then, NorthWestern Energy has invested over $835 million in our Montana electric infrastructure and $267 million in our Montana natural gas infrastructure. Additional Settlement Terms The settlement provides for an update to the Power Costs and Credits Adjustment Mechanism adjusting the base costs and providing for more timely recovery of deferred balances. It also addresses future recovery of certain operating costs associated with the Yellowstone County Generating Station and provides for the deferral o...