HELENA — Montana regulators say the state’s largest utility will need to provide more information before they consider proposed rate increases.
Last month, NorthWestern Energy filed requested electrical and natural gas rate adjustments with the Montana Public Service Commission. On Tuesday, the commission voted unanimously that the company’s initial application didn’t meet “minimum filing standards. They gave the utility two weeks to submit additional information.
“We gave them an expedited schedule because we know that Northwestern has an interest in moving this forward quickly, and so we didn’t want to hold up the process, but it’s really on the utility now to meet that two-week requirement,” said PSC President James Brown.
The PSC identified a series of deficiencies in NorthWestern’s application. They’re asking for additional financial data and more details on things like how many customers and which types of customers will be affected by rate increases. Brown said the company also needs to show how their revenue requirement breaks down for each electrical generation and natural gas production facility, in order to comply with an order the PSC made as part of NorthWestern’s last rate case.
Brown said this is the first time he can remember since he was elected to the PSC in 2020 that they have determined an application was insufficient on its face. He said this is essentially a procedural step, but that it’s important the commission has this information before they take a full look at NorthWestern’s request.
“NorthWestern, as the applicant in this matter, always bears the burden of proof to show that the rates that their rate adjustments that they’re requesting are just and reasonable, and if they don’t provide the information that we need to make that determination, then NorthWestern does put its own application in jeopardy,” he said.
MTN reached out to NorthWestern about the PSC’s decision.
“NorthWestern Energy will supplement our application for a regulatory rate review with the additional information required by the Montana Public Service Commission decision Aug. 6,” said public relations specialist Jo Dee Black in a statement.
NorthWestern is initially asking for an interim rate increase – about $2 a month for a typical residential electrical user and $5 a month for a typical natural gas user – that would take effect in October. They’ll also propose an additional increase to take effect in 2025, bringing the total to around $9 a month for an average electrical user and $9 a month for a gas user.