Slide 1: Montana General Rate Review Summary
Montana General Rate Review Summary August 8, 2022
Slide 2: Montana Rate Review
Requested base rate increase supports over a billion dollars invested in Montana critical infrastructure, while keeping operating costs below the rate of inflation, since our last rate reviews. (Test years: 2015 natural gas and 2017 electric) Approximately 42%1 of the requested total electric an
Slide 3: Montana Electric Rate Review Summary
Montana Electric Rate Review Summary 3 • If approved, the total requested rate adjustment would cost an average residential electric customer about $23 per month. • Approximately 43%1 of the increase is due to: • costs included in the PCCAM for market power purchases; and • higher property taxes. 1)
Slide 4: Electric Revenue Request
Montana Electric Revenue Request 4 Infrastructure investment drives 68%* of requested base rate increase • Approximately $453 million increase to rate base (from $2.337 billion to $2.790 billion) $91.8 Million Revenue Request * $34.5 million Cost of Capital plus $41.3 million Infrastructure Invest
Slide 5: Residential Natural Gas Rate Review
Residential Natural Gas Rate Review 5 • If approved, the total requested rate adjustment would cost an average residential natural gas customer about $7 per month. • Approximately 22%1 of the increase is due to higher property taxes. • Natural Gas supply purchases are adjusted outside of the general
Slide 6: Natural Gas Revenue Request
Montana Natural Gas Revenue Request 6 Infrastructure investment drives 61%* of requested base rate increase • $143 million increase to rate base (from $432 million to $575 million) $20.2 Million Revenue Request * $11.1 million Cost of Capital plus $7.5 million Infrastructure Investment as a percen
Slide 7: Regulatory Framework
Regulatory Framework 7 Power Cost & Credit Adjustment Mechanism (PCCAM) • Requesting an annual ‘formulaic’ base cost update • More timely recovery of deferred balances by moving to monthly adjustments (currently annual) • Adjustments to modeling and calculation of 90/10 sharing mechanism Fixed Cost
Slide 8: Delivering Customer Value
Delivering Customer Value 8 NorthWestern’s utility infrastructure investment (gross plant) - providing increased capacity, reliability and safety for our Montana customers - has more than doubled over the last decade (increasing over $2.9 billion) yet increases to customer bills have remained well b
Slide 9: Upetivering a
Upetivering a bright future