NorthWestern Energy Announces Settlement Agreements in Montana Electric and Natural Gas Regulatory Rate Review
NorthWestern Energy (Nasdaq: NWE) has reached settlement agreements in its Montana electric and natural gas regulatory rate review with multiple stakeholders. The agreements, if approved, will result in rate increases for customers effective July 1, 2024:
- Natural gas customers will see a 9.14% monthly increase ($4.74 for typical residential usage)
- Electric customers will face a 4.21% monthly increase ($4.63 for typical residential)
The settlements will increase annual natural gas base revenues by $18 million and electric base revenues by $66.4 million. Including the Yellowstone County Generating Station request, the total electric base revenue request is $110.3 million, though net revenue increase will be $14.6 million after adjustments. The agreements set ROE at 9.60% for natural gas and 9.65% for electric operations, with 47.8% equity component for both.
NorthWestern Energy (Nasdaq: NWE) ha raggiunto accordi transattivi nella revisione regolatoria delle tariffe elettriche e del gas naturale in Montana con diversi stakeholder. Se approvati, gli accordi comporteranno aumenti tariffari per i clienti a partire dal 1° luglio 2024:
- I clienti del gas naturale vedranno un aumento mensile del 9,14% (4,74 $ per un consumo residenziale tipico)
- I clienti elettrici subiranno un aumento mensile del 4,21% (4,63 $ per un consumo residenziale tipico)
Gli accordi incrementeranno i ricavi base annuali del gas naturale di 18 milioni di dollari e quelli elettrici di 66,4 milioni di dollari. Considerando la richiesta relativa alla Yellowstone County Generating Station, la richiesta totale di ricavi base elettrici è di 110,3 milioni di dollari, anche se l’aumento netto dei ricavi sarà di 14,6 milioni di dollari dopo le rettifiche. Gli accordi fissano un ROE del 9,60% per il gas naturale e del 9,65% per l’elettricità, con una componente azionaria del 47,8% per entrambe le attività.
NorthWestern Energy (Nasdaq: NWE) ha alcanzado acuerdos de conciliación en la revisión regulatoria de tarifas eléctricas y de gas natural en Montana con múltiples partes interesadas. De ser aprobados, los acuerdos resultarán en aumentos tarifarios para los clientes a partir del 1 de julio de 2024:
- Los clientes de gas natural verán un incremento mensual del 9,14% (4,74 $ para un consumo residencial típico)
- Los clientes eléctricos enfrentarán un aumento mensual del 4,21% (4,63 $ para un consumo residencial típico)
Los acuerdos aumentarán los ingresos base anuales del gas natural en 18 millones de dólares y los ingresos base eléctricos en 66,4 millones de dólares. Incluyendo la solicitud de la Central Generadora del Condado de Yellowstone, la solicitud total de ingresos base eléctricos es de 110,3 millones de dólares, aunque el aumento neto de ingresos será de 14,6 millones de dólares tras ajustes. Los acuerdos establecen un ROE del 9,60% para el gas natural y del 9,65% para la electricidad, con un componente patrimonial del 47,8% para ambas operaciones.
NorthWestern Energy (나스닥: NWE)는 몬태나 주 전기 및 천연가스 요율 규제 검토와 관련하여 여러 이해관계자들과 합의에 도달했습니다. 이 합의안이 승인되면 2024년 7월 1일부터 고객 요금이 인상됩니다:
- 천연가스 고객은 월 9.14% 인상(일반 가정용 사용량 기준 $4.74 인상)
- 전기 고객은 월 4.21% 인상(일반 가정용 사용량 기준 $4.63 인상)
이번 합의로 연간 천연가스 기본 수익은 1,800만 달러, 전기 기본 수익은 6,640만 달러 증가합니다. 옐로스톤 카운티 발전소 요청을 포함하면 총 전기 기본 수익 요청액은 1억 1,030만 달러이나, 조정 후 순수익 증가는 1,460만 달러가 될 예정입니다. 합의는 천연가스 운영에 대해 9.60%, 전기 운영에 대해 9.65%의 자기자본수익률(ROE)을 설정하며, 두 사업 모두 47.8%의 자본 구성 비율을 유지합니다.
NorthWestern Energy (Nasdaq : NWE) a conclu des accords de règlement dans le cadre de la révision réglementaire des tarifs électriques et du gaz naturel dans le Montana avec plusieurs parties prenantes. Si ces accords sont approuvés, ils entraîneront des augmentations tarifaires pour les clients à compter du 1er juillet 2024 :
- Les clients de gaz naturel verront une augmentation mensuelle de 9,14 % (4,74 $ pour une consommation résidentielle typique)
- Les clients d’électricité subiront une augmentation mensuelle de 4,21 % (4,63 $ pour une consommation résidentielle typique)
Les accords augmenteront les revenus annuels de base du gaz naturel de 18 millions de dollars et ceux de l’électricité de 66,4 millions de dollars. En incluant la demande relative à la centrale de Yellowstone County, la demande totale de revenus de base pour l’électricité s’élève à 110,3 millions de dollars, bien que l’augmentation nette des revenus sera de 14,6 millions de dollars après ajustements. Les accords fixent un ROE de 9,60 % pour le gaz naturel et de 9,65 % pour l’électricité, avec une composante en fonds propres de 47,8 % pour les deux activités.
NorthWestern Energy (Nasdaq: NWE) hat Einigungsvereinbarungen in der regulatorischen Überprüfung der Strom- und Erdgaspreise in Montana mit mehreren Beteiligten erzielt. Wenn diese genehmigt werden, führen sie ab dem 1. Juli 2024 zu Preiserhöhungen für Kunden:
- Erdgas-Kunden sehen eine monatliche Erhöhung von 9,14 % (4,74 $ für einen typischen Haushaltsverbrauch)
- Stromkunden erhalten eine monatliche Erhöhung von 4,21 % (4,63 $ für einen typischen Haushaltsverbrauch)
Die Vereinbarungen erhöhen die jährlichen Grunderlöse im Erdgasbereich um 18 Millionen Dollar und im Strombereich um 66,4 Millionen Dollar. Unter Einbeziehung des Antrags für das Yellowstone County Kraftwerk beträgt die Gesamtsumme der beantragten Grunderlöse im Strombereich 110,3 Millionen Dollar, wobei der Nettoerlösanstieg nach Anpassungen 14,6 Millionen Dollar beträgt. Die Vereinbarungen legen eine Eigenkapitalrendite (ROE) von 9,60 % für Erdgas und 9,65 % für Strom fest, mit einem Eigenkapitalanteil von 47,8 % für beide Bereiche.
- Expected $18M increase in annual natural gas base revenues
- Expected $66.4M increase in annual electric base revenues
- Yellowstone County Generating Station projected to provide $4.1M annual rate benefit for Montana customers
- Successful settlement agreements with multiple key stakeholders
- 9.14% rate increase for natural gas customers
- 4.21% rate increase for electric customers
- Yellowstone County Generating Station proposal remains unsettled
Insights
NorthWestern Energy's recently announced settlement agreements in its Montana rate case represent a significant regulatory win for the utility. The agreements secure $18 million in additional annual natural gas revenue and $66.4 million in electric base revenue increases – critical financial outcomes that support the company's infrastructure investment needs.
The settlements establish competitive authorized returns –
Particularly noteworthy is the broad coalition supporting these agreements, including consumer advocates, major industrial customers, federal agencies, and Walmart. This diverse stakeholder buy-in significantly reduces regulatory friction and demonstrates NorthWestern's effective regulatory relationship management – a critical but often overlooked value driver for regulated utilities.
The residential customer bill impacts appear manageable (
While the Yellowstone County Generating Station remains subject to separate litigation, the claimed $4.1 million annual rate benefit suggests potential upside beyond the settled items. These agreements provide NorthWestern with enhanced financial predictability and allow management to focus on operations rather than prolonged regulatory battles – a meaningful positive for this utility's operating environment.
Customer Bill Impact
Natural Gas Settlement: If approved by the Montana Public Service Commission, a typical natural gas residential customer using 65 therms per month would see a monthly bill increase of
Partial Electric Settlement: If the electric settlement and NorthWestern’s proposals for the new generation resource, the Yellowstone County Generating Station, state property taxes and supply costs are approved, a typical electric residential customer would see a monthly bill increase of
Statement from NorthWestern Energy
“Our customers deserve the most reliable energy service available,” said NorthWestern Energy President and Chief Executive Officer Brian Bird. “Our employees work every day to deliver this service safely, 24 hours a day, 365 days a year, while keeping bills as low as possible. The cost of delivering safe, reliable energy includes maintaining a vast natural gas and electric infrastructure network.
We are pleased that the parties in these constructive settlements prioritized the best interests of our customers. These agreements ensure that NorthWestern Energy can continue making the necessary energy system investments for safe and reliable energy service for our communities.”
Financial Impact
If approved, the settlement agreements are expected to increase annual natural gas base revenues by approximately
Including the unsettled request for the Yellowstone County Generating Station, NorthWestern’s base revenue request is
The natural gas settlement is based on an authorized return on equity of
The partial electric settlement is based on an authorized return on equity of
Additional Settlement Terms
-
Standby Tariff: NorthWestern Energy and the University of
Montana reached a settlement agreement for the proposed Standby Tariff. If approved by the Montana PSC, the settlement standby rates will be effective for customers that rely on NorthWestern Energy for backup power, but provide their own energy service most of the time. - Colstrip Plant Transition: NorthWestern Energy and the Northern Cheyenne Tribe reached a settlement agreement that defines the Tribe’s involvement in transition planning for the Colstrip Plant, which is east of the Northern Cheyenne Reservation. The Northern Cheyenne Tribe recognizes NorthWestern Energy’s impending majority ownership of the Colstrip Plant as a commitment to responsible stewardship, long-term energy reliability and economic sustainability for the region.
The settlement agreements were submitted to the Montana Public Service Commission for its consideration.
Yellowstone County Generating Station and Supply Costs
NorthWestern Energy’s proposals for the Yellowstone County Generating Station and for recovery of flow-through supply costs are not included in the settlement agreements.
"This facility has already contributed to a significant decrease in rates for our
The Yellowstone County Generating Station and Power Cost and Credit Adjustment Mechanism proposals, along with other non-revenue matters, will be litigated during the Montana Public Service Commission public hearing beginning April 22, 2025.
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NorthWestern Energy - Delivering a Bright Future
NorthWestern Energy Group, Inc., doing business as NorthWestern Energy, provides essential energy infrastructure and valuable services that enrich lives and empower communities while serving as long-term partners to our customers and communities. We work to deliver safe, reliable, and innovative energy solutions that create value for customers, communities, employees, and investors. We do this by providing low-cost and reliable service performed by highly-adaptable and skilled employees. We provide electricity and / or natural gas to approximately 775,300 customers in
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Investor Relations Contact:
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travis.meyer@northwestern.com
Media Contact:
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Source: NorthWestern Energy Group, Inc.
FAQ
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