Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Bank of America Chicago Round Robin March 2025
52 slides from Northwestern Energy's conference presentation, Mar 25, 2025
Slide 1: Investor Update – Bank of America Chicago Round Robin
Investor Update Bank of America – Chicago Round Robin March 2025 1 8-K Date: March 25, 2025
Slide 2: NorthWestern Energy – Forward Looking Statements
NorthWestern Energy NorthWestern Energy Group, Inc. dba: NorthWestern Energy Ticker: NWE (Nasdaq) www.northwesternenergy.com Corporate Support Office 3010 West 69th Street Sioux Falls, SD 57108 (605) 978-2900 Director of Corporate Development & Investor Relations Officer Travis Meyer 605-978-2967 tr
Slide 3: Overview
Thank Overview you 3
Slide 4: NWE – An Investment for the Long Term
NWE – An Investment for the Long Term • 100% pure electric and natural gas utility with over 100 years of operating history Pure Electric & • Solid economic indicators in service territory Gas Utility • Diverse electric supply portfolio ~58% hydro, wind, & solar • Residential electric and gas rates
Slide 5: About NorthWestern
About NorthWestern South Dakota Operations Electric 65,300 customers 3,735 miles – transmission & distribution lines 420 MW nameplate owned power generation Natural Gas 50,500 customers 1,851 miles of transmission and distribution pipeline Montana Operations Electric 413,400 customers 25,390 miles –
Slide 6: The NorthWestern Value Proposition
The NorthWestern Value Proposition ~5% Dividend Yield + + Base Capital Plan: Incremental Opportunities: 4%-6% EPS Growth > 6% EPS Growth 2025-2029 Capital Investment $2.74 billion ($ Millions) of highly executable and ✓ Data centers & new large- low-risk capital load opportunities investment forecas
Slide 7: A Diversified Electric and Gas Utility
A Diversified Electric and Gas Utility NorthWestern’s ‘80/20’ rules: Approximately 80% Electric and 80% Montana. Nearly $5.4 billion of rate base investment to serve our customers. 7 Data as reported in our 2024 10-K
Slide 8: Highly Carbon-Free Supply Portfolio
Highly Carbon-Free Supply Portfolio Contracted energy from Colstrip Energy Limited Partners (CELP), Yellowstone Energy Limited Partners (YELP) MT as well as a majority of the contracted wind, hydro and solar are federally mandated Qualifying Facilities, as defined under the Public Utility Regulatory
Slide 9: Strong Utility Foundation
Strong Utility Foundation 1) NWE rates are average for 2024 - total residential revenues divided by total residential loads delivered Electric source: U.S. EIA - Average Retail Price of Electricity, Annual for 2024 Natural Gas source: U.S. EIA - U.S. Price of Natural Gas Delivered to Residential Cus
Slide 10: Solid Economic Indicators
Solid Economic Indicators • Customer growth rates historically exceed National Averages. • Projected population growth Source: Company 10K’s, 2022/2023 EEI Statistical Yearbook – Table 7.2, and EIA.gov Source: Company 10K’s and EIA.gov in our service territories better than the National Average. • U
Slide 11: NorthWestern's Combo Advantage
NorthWestern’s Combo Advantage ✓ Combination electric & natural gas provider in Montana & South Dakota • Targeting best-in-class Customer Experience • Opportunity to invest in critical Capacity expansion (supply & transmission) • Continued Grid Evolution to improve resiliency and enhance wildfire mi
Slide 12: Natural Gas LDC – AECO Advantage to Customers
Natural Gas LDC – AECO Advantage to Customers Natural gas is one of the most affordable energy sources, and NWE has access to some of the lowest and most stable natural gas prices in the nation through the Alberta Energy Company (AECO) and Henry trading hubs. Source: S&P Global We recently partnered
Slide 13: Corporate Sustainability
Corporate Sustainability Environmental Social Governance These eight publications provide valuable insight into NorthWestern Energy’s Sustainability practices. The Sustainability Report includes Sustainability Accounting Standards Board (SASB) and Task Force on Climate-Related Financial Disclosures
Slide 14: Best Practices Governance, Diverse Leadership
Best Practices Governance Diverse Leadership Board of Directors Executive Team 5th Best Score Among 50 Publicly Traded North American Utility and Power Companies by Moody’s Investment Services for Best Governance Practices Recent Governance Recognition America’s Most Responsible Companies Recognized
Slide 15: Financial & Regulatory Update
Thank you Financial & Regulatory Update 15
Slide 16: Strong Growth Outlook
Strong Growth Outlook ✓ 2025 EPS guidance expected to be provided following the outcome of our pending Montana rate review ✓ Affirming long-term growth rates from 2024 base1 • EPS growth of 4% to 6% • Rate base growth of 4% to 6% • Continued focus on closing the gap between earned & authorized retur
Slide 17: Credit, Cash Flow, and Financing Plans
Credit, Cash Flow, and Financing Plans Credit Ratings FFO: Cash from Operations less Working Capital Adjustments. Debt: Long- & Short-term Debt (including unamortized debt issuance costs and pension liability). Stable Outlook at Moody’s, S&P and Fitch. No equity expected to fund the current $2.74 bi
Slide 18: Track Record of Growing Capital Investment
Track Record of Growing Capital Investment $2.53 Billion invested over the last 5 years* $2.74 Billion forecasted over the next 5 years** 18 * Historical Capital Investment includes property, plant, and equipment additions and AFUDC Credit, both from our cash flow statement, and change in capital ex
Slide 19: Solid Balance Sheet
Solid Balance Sheet Target: 50% - 55% - Annual ratio based on average of each quarter's debt/cap ratio Excludes Basin Creek capital lease and New Market Tax Credit Financing * Liquidity target was raised to $200 million during the height of the Covid pandemic Investment grade credit ratings, liquidi
Slide 20: Disciplined Expense Program
Disciplined Expense Program Per Customer… Per Employee… Per Rate Base… NorthWestern maintains best-in-class expense efficiency among our regional peers. Source: FERC Form 1 Reports - 2023 expenses and company filings through S&P Global IQ. Electric Non-Fuel O&M excludes fuel and steam costs for powe
Slide 21: Rate Reviews
Thank Rate Reviews you 21
Slide 22: Rate Review Summary
Rate Review Summary MT Electric MT Natural Gas NE Natural Gas Key Dates of Montana procedural Schedule Date Filed July 10, 2024 July 10, 2024 June 6, 2024 • 3/24/25: Final day to file 2023 with 2024 Known & 2023 with 2024 Known & 2023 with 2024 Known & settlements Test Year End Measurables Measurabl
Slide 23: Strategic Update
Thank you Strategic Update 23
Slide 24: Incremental Colstrip Capacity
Incremental Colstrip Capacity ✓ No cost acquisition of incremental Colstrip ownership allows us to reliably and affordably serve existing customers ▪ Provides energy independence & improves system reliability / integrity ▪ Moves portfolio from short capacity position to long capacity 370 MW ▪ Mainta
Slide 25: Large Load Customers
✓ Announced: December 17, 2024 ▪ Large Load Customers ▪ Company: Confidential Data Center Developer Load: 50 MW expected to grow to 250 MW ▪ Start Date: Mid-2027 ✓ Montana ▪ Agreement Status: Letter of Intent ▪ Served by overall utility portfolio, ✓ Announced: December 19, 2024 ▪ Company: Atlas Powe
Slide 26: Regional Transmission Opportunities
26 Regional Transmission Opportunities North Plains Connector North Plains Connector (NPC) Consortium Project • $3.6 billion, 415-mile, high-voltage direct-current transmission line connecting to Montana's Colstrip substation, bridging the eastern and western U.S. energy grids • Project awarded $700
Slide 27: Energy West / Cut Bank Natural Gas Acquisition
Energy West / Cut Bank Natural Gas Acquisition • Two natural gas LDC’s in Montana: Energy West Montana (“EWM”) and Cut Bank Gas Co. (“CBGC”) from Hope Utilities Transaction • 33,000 customers in Great Falls area, West Yellowstone and Cut Bank communities Highlights • EWM’s and CBGC’s currently autho
Slide 28: Colstrip Transaction Overview
Colstrip Transaction Overview NorthWestern Energy entered into an agreement to acquire Puget Sound Energy’s ownership interests in Colstrip Units 3 and 4. This transaction is in addition to our previously disclosed agreement with Reliability Avista to acquire their ownership interest in Colstrip. No
Slide 29: Colstrip Facility Ownership Overview
Colstrip Facility Ownership Overview 55% In January 2026, we will own 55% of Colstrip Units 3 &4. This allows us to guide investments in operation and maintenance in providing on- demand, 24/7 cost-effective generation for our Montana customers until a viable equivalent, carbon-free energy resource
Slide 30: Montana Wildfire Mitigation Plan
Montana Wildfire Mitigation Plan Reduction of System and Enhanced Enriched Public Ignition Potential Environmental Vegetation Communication Monitoring Maintenance and Outreach NorthWesternEnergy.com/Wildfire NorthWesternEnergy.com/Wildfire ✓ Comprehensive summary of robust wildfire mitigation activi
Slide 31: Montana Public Safety Power Shutoff Plan
Montana Public Safety Power Shutoff Plan PSPS Decision Process Guiding Principles: • Uphold our commitment to sustainable, affordable, and reliable service • Ensure the safety of our employees, customers, communities, the public, and the environment Communication to Stakeholders at each Situation •
Slide 32: Conclusion
Conclusion Best Attractive Pure Strong Solid Utility Practices Future Electric & Earnings & Foundation Corporate Growth Gas Utility Cash Flows Governance Prospects 32
Slide 33: Appendix
Thank Appendix you 33
Slide 34: Regulated Utility Five-Year Capital Forecast
Appendix Regulated Utility Five-Year Capital Forecast (millions) 11% increase in 5-year capital investment plan $2.74 billion of highly-executable and low-risk critical capital investment 34
Slide 35: Rate Base & Authorized Return Summary
Appendix Rate Base & Authorized Return Summary (1) The revenue requirement associated with the FERC regulated portion of Montana electric transmission and ancillary services are included as revenue credits to our MPSC jurisdictional customers. Therefore, we do not separately reflect FERC authorized
Slide 36: 2024 System Statistics
Appendix 2024 System Statistics Note: Statistics above are as of 12/31/2024 (1) Nebraska is a natural gas only jurisdiction (2) Dave Gates Generating Station (DGGS) in Montana is a 150 MW nameplate facility but consider it a 105 MW 36 (60 MW FERC & 45MW MPSC jurisdictions) peaker
Slide 37: Our Net-Zero Vision
Appendix Our Net-Zero Vision Over the past 100 years, NorthWestern Energy has maintained our commitment to provide customers with reliable and affordable electric and natural gas service while also being good stewards of the environment. We have responded to climate change, its implications and risk
Slide 38: Timeline of Montana Generation Portfolio
Appendix Timeline of Montana Generation Portfolio Since 2011, we have added approximately 1,129 MW, both owned and long-term contracted, to our generation portfolio, of which 954 MW (~84%) is from carbon-free resources.
Slide 39: Comparison of Installed Capacity
Appendix Comparison of Installed Capacity Comparison of Installed Capacity (MW) - Dispatchability and Carbon Emitting California NorthWestern Energy (Montana) MW Percent MW Percent 2023 of Total Dispatchable Non-Carbon 2023 of Total Dispatchable Non-Carbon Coal / Coke 63 0.1% 0.1% 309 18.8% 18.8% Oi
Slide 40: EPS & Dividend History
Appendix EPS & Dividend History 2010-2024 CAGR’s: GAAP EPS: 3.9% Non-GAAP EPS: 3.6% Dividend: 4.7% See appendix for “Non- GAAP Financial Measures” 40
Slide 41: Wildfire Risk Assessment
Appendix Wildfire Risk Assessment Distribution Transmission 41 Based on 2022 data Note: % shown in quadrants are by line mile
Slide 42: Electric Wallet Share
Appendix Electric Wallet Share 42
Slide 43: Natural Gas Wallet Share
Appendix Natural Gas Wallet Share Note: Montana typical bill is based on 65 therms which translates to ~0.50% lower wallet share than pictured. For consistency with South Dakota and Nebraska, 100 therms is used for Montana in this illustration. Oct. - Sept. Fiscal Year 43
Slide 44: Experienced and Engaged Board of Directors
Appendix Experienced and Engaged Board of Directors Linda Sullivan Brian Bird Sherina Edwards Dave Goodin Jan Horsfall Board Chair Director, President Director Director Director, & Chief Operations Executive Committee Officer Chair Committees: Committees: Committees: Nominating Audit, Operations Dir
Slide 45: Strong Executive Team
Appendix Strong Executive Team Brian Bird Crystal Lail Shannon Heim Michael Cashell John Hines President & Chief Financial General Counsel VP - Transmission VP – Supply / Chief Officer and VP – Federal Montana Executive Government Government Officer Affairs Affairs Current Joined position company in
Slide 46: Our Commissioners
Appendix Our Commissioners Montana Public Service Commission Montana – two new commissioners Began Term Commissioners are elected in elected, one re-elected. Name Party Serving Ends statewide elections from each Brad Molnar (R) elected as District 2 Brad Molnar (President) R Jan-25 Jan-29 of five di
Slide 47: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures Pre-Tax Adjustments ($ Millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Reported GAAP Pre-Tax Income $ 181.2 $ 156.5 $ 176.1 $ 178.3 $ 182.2 $ 144.2 $ 190.2 $ 182.4 $ 201.6 $ 214.7 Non-GAAP Adjustments to Pre-Tax Income: Weather 13.2 15.2 (3.4) (1.3) (
Slide 48: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures This presentation includes financial information prepared in accordance with GAAP, as well as other financial measures, such as Utility Margin, Adjusted Non-GAAP pretax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS that are considered “no
Slide 49: Rate Review Appendix
Thank you Rate Review Appendix 49
Slide 50: Montana Electric Rate Review
Appendix Montana Electric Rate Review $156.5 Million Base Rate Increase Requested & $69.4 Million Total Request Typical 750 kWh Residential Electric Bill Base Flow-Through Typical Res. Rates Costs Monthly Bill Plant in Service Additions YCGS Net Customer Impact Prior Rates $64.33 $45.74 $110.07 Inte
Slide 51: Montana Gas Rate Review
Appendix Montana Gas Rate Review $28.6 Million Base Rate Increase Requested Typical 65 Therm Residential Natural Gas Bill Base Flow-Through Typical Res. Rates Costs Monthly Bill Plant in Service Additions Prior Rates $32.77 $19.12 $51.89 Interim Rates $36.96 $15.23 $52.19 $ Change $4.19 ($3.89) $0.3
Slide 52: Thank you
Thank you Delivering a bright future 52
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