Montana 2024 request for regulatory electric and natural gas rate review
Since our last rate review in 2022, NorthWestern Energy expects to have invested more than $1 billion in our Montana natural gas and electric businesses by the end of 2024, costs that are not included in current rates.
NorthWestern Energy is requesting a regulatory rate review to reflect the continued investments to serve our Montana customers in the past two years. Current NorthWestern Energy Montana natural gas and electric rates were set using cost information from 2021.
NorthWestern Energy’s application proposes incremental steps for recovery of our costs increases since the last rate review.
Proposed interim rates
The proposed interim rate, if approved by the Commission, would be implemented on Oct. 1, 2024.
A typical electric residential customer using 750 kilowatt-hours per month would have a monthly bill increase of $2.09, or 1.90%, from July 2024 rates.
- A typical natural gas residential customer using 65 therms per month would have a monthly bill increase of $4.81, or 9.28%, from July 2024 rates.
Proposed new rates
The proposed new electric and natural gas rates, if approved by the Commission, would be implemented on April 10, 2025.
- For a typical electric residential customer using 750 kilowatt-hours per month, the proposed new rate would mean a monthly bill increase of $9.11 or 8.28% from July 2024 rates.
- For a typical natural gas residential customer using 65 therms per month, the proposed rate would mean a monthly bill increase of $8.84, or 17.04%, from July 2024 rates.
NorthWestern Energy’s investments in our Montana energy business
INFRASTRUCTURE AND EQUIPMENT: We leverage our existing infrastructure and equipment by investing in maintenance, part of our commitment to deliver reliable and affordable service for our customers. Equipment that is no longer efficient or safe is replaced. We are modernizing our electric system in Montana, which involves upgrading our infrastructure, technology, and processes. This enhances our service reliability, our system’s resiliency and reduces the risk of outages and disruptions.
ENERGY GENERATION: We have taken significant steps to address risks to service reliability and affordability due to insufficient on-demand resources in the Montana electric portfolio to meet customer energy needs during critical weather or to participate in new regional energy markets.
NorthWestern Energy continues to reinvest in existing hydro plants to maintain the assets and enhance output.
We have new access to the 175 megawatt Yellowstone County Generating Station, an on-demand generation resource located in Montana that is dispatchable to meet our Montana customers’ energy demand when it is needed most.
Generation from owned assets located in the state and dedicated to serving our Montana customers provides dependable sources to meet customers’ peak energy demands. It also allows us to avoid making higher-priced purchases from the energy market, flow through costs that customers pay.
The Montana grid has a considerable amount of intermittent wind and solar generation and the Yellowstone County Generating Station’s on-demand, flexible generation keeps the grid stable when generation from those resources is strong and when it drops.
SYSTEM SECURITY: We prioritize the security of our energy assets and service, including cybersecurity. We implement robust measures to protect our systems from physical and cyber threats, and to respond quickly and effectively in case of an incident.
NorthWestern Energy’s Montana electric and gas services are delivered at high levels of reliability, at the most affordable rates possible. The average energy bills for NorthWestern Energy Montana customers are less than the national average for energy bills, despite the significant flow through costs of Montana property taxes and energy market purchases.
We are requesting this regulatory rate review in to continue to be a financially sound energy company, which benefits our customers and the economy. NorthWestern Energy needs capital to continue the substantial investments in the essential infrastructure required to provide reliable energy service. Financially healthy energy companies are more attractive to investors and can access more capital at lower costs.
- We recognize that our rate request will impact our customers during a period when other prices are also increasing. NorthWestern Energy is committed to helping customers who may be struggling with their bills.
- Customers concerned about their ability to pay their energy bill can contact NorthWestern Energy for information about energy assistance programs and to arrange flexible payment options.
- NorthWestern Energy also helps customers with access to critical government and community assistance funding programs through the Low Income Home Energy Assistance Program (LIHEAP) and Energy Share of Montana.
What can I do to manage my bill?
We’ve always been available to help those who may be struggling with their energy bills. We offer payment options, referrals for energy assistance programs and a discount for customers enrolled in the Low Income Home Energy Assistance Program. We provide education and tools for energy efficiency to reduce energy use and lower bills.
- Start preparing today.
- Apply for financial assistance.
- Sign up for Budget Billing.
- Implement energy efficiency tips.
If you're concerned about paying your bill, reach out to us right away. We have billing and payment options that can help.
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Frequently asked questions about the Montana Rate Review
What is a regulatory rate review?
The Montana Public Service Commission regulates investor-owned energy companies in the Montana and must approve NorthWestern Energy’s electric and natural gas rates.
It's the Montana PSC's role to balance customers' interests in price, adequate service, and infrastructure, with the need to maintain a financially sound energy company capable of providing reliable energy service.
What if I have concerns about paying my bill?
We know our rate request will impact our customers during a period when other prices are also increasing. NorthWestern Energy is committed to helping customers who may be struggling with their bills.
Options to manage your bill include:
- Apply for financial assistance.
- Sign up for Budget Billing.
- Implement energy efficiency tips.
Customer Service Representatives are available to guide customers that might need help. Call 888-467-2669. Walk-in Customer Contact Centers are open weekdays in locations throughout Montana.
Rate Cases
View the 2024 Montana Rate Review Filing Documents
View the 2022 Montana Regulatory Rate Review