NorthWestern News

Second-Annual NorthWestern Energy Home Suite Home Contest

web@northwestern.com — Fri, 09 May 2008 15:25:42 GMT

Butte , Mont./Huron, S.D. – May 9, 2008 – NorthWestern Energy in partnership with ENERGY STAR® recently launched the second-annual NorthWestern Energy Home Suite Home contest. To bring awareness to customers on how they can celebrate Earth Day – everyday, NorthWestern Energy will improve the energy efficiency in three customers’ homes by awarding them with a new appliance suite and energy improvement measures, such as compact fluorescent light bulbs (CFLs).

A winner will be selected in each of the company’s three service territories – Montana, Nebraska and South Dakota. Last year, winners were selected in Helena, Mont.,
Aberdeen, S.D., and Grand Island, Neb.

Customers are encouraged to enter by logging on to the company’s Web site: www.northwesternenergy.com and filling out a short form. June 4, 2008, at 5 p.m. (MDT) is the deadline for submitting entries.

“Winners will be chosen based upon the essay they submit, which explains why they think their home should be chosen,” explained Brandy Powers, communications coordinator for NorthWestern Energy. “So far we’ve received about 500 entries.”

There are two separate home appliance suites that will be rewarded, dependent upon if the customer receives electric or natural gas service. If the customer receives both natural gas and electric services, they will have their choice of which package they would like to receive.

The appliance suite for an electric customer consists of: an ENERGY STAR refrigerator with dispenser; an ENERGY STAR clothes washer; and an electric clothes dryer. The appliance suite for a natural gas customer consists of: a gas range; an option of either a 50-gallon hot water heater, or a natural gas tankless hot water tank; and an ENERGY STAR programmable thermostat.

Regardless of service type, winners also will receive an on-site home energy audit. Energy auditors will perform a gas appliance inspection for customers whose gas is delivered by NorthWestern Energy. The auditors will perform a blower door analysis to demonstrate areas of air leakage, and offer customers education on how lifestyle and habits affect energy use. In addition, the winner will receive a report specific to their home and energy use habits and the auditors will install energy efficient measures where applicable.

Contest ends – June 4, 2008 at 5 p.m.

For complete contest rules, visit www.northwesternenergy.com. Customers may enter the contest through the NorthWestern Energy Web site, or by picking up an entry form from a local NorthWestern office, or by calling (888) 467-2669 in Montana and (800) 245-6977 in South Dakota/Nebraska.

About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. For more information about NorthWestern Energy, visit our Web site at www.northwesternenergy.com.

Media Contact:
Tom Glanzer
1 + (866) 622-8081
tom.glanzer@northwestern.com

NorthWestern Energy Names Miggie E. Cramblit as Vice President, General Counsel and Corporate Secretary

web@northwestern.com — Thu, 01 May 2008 16:41:42 GMT

SIOUX FALLS, S.D. – May 1, 2008 – NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) today announced the appointment of Miggie E. Cramblit as vice president, general counsel and corporate secretary effective May 5, 2008.

In her new role, Cramblit will assume the responsibilities previously held by Tom Knapp. In light of the Company’s focus on operations and growth in its core utility territory, the decision was made to have the general counsel based in Sioux Falls, S.D. Mr. Knapp and his family were unable to make the move, so he stepped down as general counsel and corporate secretary.

“Tom has been with NorthWestern Energy for five years. During this critical time in our history, Tom has done a good job for us in his role as general counsel,” said Mike Hanson, NorthWestern Energy’s president and CEO. “NorthWestern has benefited greatly from his work ethic, insight and guidance. He will continue to assist us in an advisory capacity while Miggie transitions into her new position.”

Cramblit, 52, brings almost 25 years of utility industry legal and business experience. Prior to joining NorthWestern Energy, Cramblit was the senior vice president, general counsel and corporate secretary for the DPL Inc. and its primary subsidiary, The Dayton Power and Light Company. She also previously was vice president, general counsel and corporate secretary for Reliant Energy Minnegasco (now CenterPoint Energy Minnesota Region).

“Miggie brings a wealth of talent and experience to this job,” Hanson added. “She has experience in regulatory law practices including SEC, Sarbanes Oxley, environmental, federal and state energy regulation, and insurance. She also has served as corporate secretary for both private and NYSE companies and has proven experience in the utility industry. We believe she will be a good fit with NorthWestern Energy’s culture.”

Cramblit holds a Juris Doctorate from Hamline University School of Law, in St. Paul, Minn.

About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. For more information about NorthWestern Energy, visit our Web site at www.northwesternenergy.com.

Media Contact:
Bobbi Schroeppel
(866) 622-8081
bobbi.schroeppel@northwestern.com

Investor Relations Contact:
Dan Rausch
(605) 978-2902
daniel.rausch@northwestern.com

NorthWestern Responds to Montana Public Service Commission Potential Court Action on Colstrip

web@northwestern.com — Tue, 29 Apr 2008 16:42:46 GMT

Sioux Falls, S.D. – April 29, 2008 – NorthWestern Corporation d/b/a NorthWestern Energy (NASDAQ-GS: NWEC) responds to the Montana Public Service Commissions (“MPSC”) announcement that it is considering legal action to stop a sale of the Company’s 222 MW unregulated interest in the 740 MW Colstrip 4 coal-fired electric generation unit (“Colstrip 4”).

NorthWestern, in an effort to be open and transparent, previously announced that it was engaging in a strategic review of the value and potential options for Colstrip 4. The MPSC, concerned about the future price and source of electricity for Montanans, today issued a press release indicating they will consider possible court action to stop a potential sale of Colstrip 4.

Customers are already receiving the benefit of half of NorthWestern’s interest in Colstrip 4 through power supply contracts that are significantly below market. Analysis to date indicates that it may not be in the customers’ best interest to place Colstrip 4 in rate base. Under the current supply contracts, Montana customers are not responsible for any future, currently unknown, environmental costs related to carbon emission. These costs could be significant.

NorthWestern agrees with the MPSC that ensuring adequate and reasonably priced electric supply for its Montana customers is a top priority. The Company wants to assure its Montana customers that it has dedicated energy supply professionals whose focus is working to meet the current and future electric supply needs of our Montana customers at fair and reasonable prices.

NorthWestern is disappointed in the Commission’s announcement today. Colstrip 4 has never been in rate base, and in 1985 the Commission waived its authority over Colstrip 4. The Company has been forthright in its discussions with the Commission regarding its Colstrip 4 process.

NorthWestern has worked hard to build positive relations with the MPSC and the citizens of Montana. The Company remains willing to discuss the facts, but a lawsuit would be unnecessary, counter-productive and without legal basis.

The Company intends to complete its evaluation of strategic options for Colstrip 4 while providing reasonably priced and environmentally responsible power for consumers and fair and reasonable returns for our shareholders.

About NorthWestern Energy

NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.

Media Contact:
Bobbi Schroeppel
1 + (866) 622-8081
bobbi.schroeppel@northwestern.com

Investor Relations Contact:
Dan Rausch
(605) 978-2902
daniel.rausch@northwestern.com

NorthWestern Reports First Quarter 2008 Financial Results

web@northwestern.com — Wed, 23 Apr 2008 14:33:27 GMT

Reports improvement in net income, gross margin and operating income

Sioux Falls, S.D. – April 23, 2008 – NorthWestern Corporation d/b/a NorthWestern Energy (NASDAQ-GS: NWEC) today reported financial results for the quarter ended March 31, 2008.

Highlights for the Quarter

Net income improved to $23.5 million in the first quarter of 2008, an increase of 23.0 percent compared with $19.1 million in the first quarter of 2007;
Gross margin improved to $156.9 million in the first quarter of 2008, an increase of 6.5 percent compared with $147.3 million in the first quarter of 2007;
Operating income improved to $52.1 million in the first quarter of 2008, an increase of 17.3 percent compared with $44.4 million in the first quarter of 2007;
Reached a tentative settlement of the Company’s transmission rate case filed with the Federal Energy Regulatory Commission (FERC) in February 2008 resulting, pending approval, in an annualized margin increase of approximately $3.0 million.
Standard & Poor’s Rating Group upgraded the Company’s senior secured, senior unsecured and long-term corporate credit ratings resulting in a decrease in the interest rate, commitment fees and removal of certain covenants associated with the Company’s revolver.
Filed an application to list on the NYSE Euronext (“NYSE”) under ticker symbol NWE and will begin trading on the NYSE on May 1, 2008.

Financial Results

Consolidated net income was $23.5 million or $.59 per diluted share for the quarter ended March 31, 2008, compared with consolidated net income of $19.1 million or $.51 per diluted share for the quarter ended March 31, 2007.

“We had a solid financial quarter where we benefited from rate relief, customer growth and colder weather than last year,” said Mike Hanson, NorthWestern Energy’s President and CEO. “We remain focused on our core operations and are well poised to move forward on our strategic generation and transmission growth projects.”

Consolidated gross margin for the first quarter of 2008 was $156.9 million compared with $147.3 million for the first quarter of 2007. Gross margin in the regulated electric segment increased $7.9 million from the first quarter of 2007. Gross margin in the regulated natural gas segment increased $7.3 million from the first quarter of 2007. Gross margin in the unregulated electric segment decreased $4.6 million from the first quarter of 2007. Gross margin in the “other” segment decreased $1.0 million from the first quarter of 2007.

Consolidated operating, general and administrative expenses were $60.1 million for the first quarter of 2008 compared with $62.4 million for the first quarter of 2007. The decrease was due to reduced operating lease expense related to the purchase of our previously leased interest in Colstrip Unit 4 partly offset by higher legal and professional fees, which included a $1.8 million judgment related to the City of Livonia shareholder litigation.

Property and other taxes were $23.6 million in the first quarter of 2008 compared with $20.6 million in the same period of 2007. Depreciation expense was $21.1 million in the first quarter of 2008 compared with $19.9 million in the same period of 2007. The increase in depreciation expense was related primarily to the purchase of the previously leased interest in Colstrip Unit 4.

Interest expense was $16.1 million for the first quarter of 2008 compared with $13.2 million for the first quarter of 2007, primarily related to the additional debt incurred for the purchase of the previously leased interest in Colstrip Unit 4.

Results from Regulated Operations

Regulated electric gross margin for the first quarter of 2008 was $93.6 million, up 9.2 percent, compared with $85.7 million for the same period in 2007. This $7.9 million increase was primarily due to an interim increase in transmission and distribution rates in Montana, increased volumes from 1.5 percent customer growth and colder weather. Also contributing to the margin increase was an interim increase in our transmission rates and slightly higher wholesale margin due to increased generation plant availability.

Regulated retail electric volumes for the first quarter of 2008 totaled 2,634,000 megawatt hours compared with 2,533,000 megawatt hours for the first quarter of 2007, a 4.0 percent increase. The increase was due primarily to customer growth and colder weather. Wholesale electric volumes were 35,000 megawatt hours for the first quarter 2008, an increase from 32,000 megawatt hours for the same period of 2007 due primarily to increased plant availability in the South Dakota generation facilities.

Regulated natural gas gross margin was $50.3 million for the first quarter of 2008, compared with $43.0 million for the first quarter of 2007. The increase was primarily due to an increase in distribution rates and increased volumes due to 1.4 percent customer growth and colder weather. In addition, $0.7 million of the increase is due to the transfer of certain previously unregulated customers and pipelines into the regulated business and $0.4 million from higher storage utilization.

Regulated retail natural gas volumes were 14,172,000 dekatherms for the first quarter of 2008, compared with 13,037,000 dekatherms for the same period in 2007. The increase in volumes was primarily due to customer growth and colder winter weather.

Results from Unregulated Operations

Gross margin from unregulated electric operations was $13.4 million for the first quarter of 2008, a decrease from $18.0 million for the first quarter of 2007 primarily due to lower average contracted prices and higher fuel supply costs. In addition, the Company recorded an unrealized loss of $1.2 million during the first quarter of 2008 related to forward contracts executed during the period to economically hedge a portion of our Colstrip Unit 4 output through 2009. Unrealized gains and losses will be recorded, based on market prices through the duration of these contracts; however, they will ultimately reverse as the power is delivered.

Unregulated electric volumes were 476,000 megawatt hours in the first quarter of 2008, compared with 428,000 megawatt hours in the same period in 2007. Electric volumes at Colstrip Unit 4 increased primarily due to increased plant availability.

Liquidity and Capital Resources

As of March 31, 2008, cash and cash equivalents were $33.8 million compared with $12.8 million at Dec. 31, 2007. The Company had revolver availability of $173.9 million at March 31, 2008 compared with $158.7 million at Dec. 31, 2007.

Cash provided by continuing operating activities totaled $78.0 million during the first quarter 2008, compared with $104.1 million during the first quarter of 2007. This reduction was primarily due to a contribution of $21.9 million to the Company’s pension plan and lower collections of energy supply costs as compared with the first quarter of 2007.

The Company used $14.0 million for investment activities during the first quarter of 2008 compared with $60.6 million for the first quarter of 2007. Capital expenditures for the first quarter of 2008 were $14.0 million compared with $20.5 million for the first quarter of 2007. The Company also used $40.2 million in the first quarter of 2007 to purchase a previously leased interest in Colstrip Unit 4.

The Company used $43.0 million in financing activities during the first quarter of 2008 compared with $43.9 million for the first quarter of 2007. Uses of cash included dividends paid on common stock of $12.9 million during the first quarter of 2008 compared with $11.1 million during the first quarter of 2007 and long-term debt payments of $30.0 million in the first quarter of 2008.

2008 Earnings Outlook

NorthWestern reaffirms its estimate for earnings per share in 2008 to be in the range of $1.60 - $1.75 per fully diluted share. The guidance assumptions for 2008 include:

Impact of rate relief in the Company’s service territories, assuming we receive the regulatory approvals in Montana and at FERC;
Decreased lease expense and increased depreciation and interest expense related to the purchase of the previously leased interest in Colstrip Unit 4;
Lower average pricing on forward sales contracts and anticipated output volumes of 1.7 million MWH at Colstrip Unit 4;
Fully diluted average shares outstanding of 39.5 million; and
Normal weather in the Company’s electric and natural gas service territories for 2008.

Company Hosting Investor Conference Call

NorthWestern will host an investor conference call on Thursday April 24, 2008 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to review its financial results for the quarter ended March 31, 2008.

The conference call will be webcast live on the Internet at http://www.northwesternenergy.com under the “Investor Information” heading. To listen, please go to the site at least 10 minutes in advance of the call to register. An archived webcast will be available shortly after the call.

A telephonic replay of the call will be available beginning at noon ET on April 24, 2008, through May 24, 2008, at 800-475-6701, access code 919615.

About NorthWestern Energy

NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.

SPECIAL NOTE REGARDING FORWARD—LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, the information under “2008 Earnings Outlook.” Forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” or “will.” These statements are based upon our current expectations and speak only as of the date hereof. Our actual future business and financial performance may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including, but not limited to:

• our ability to avoid or mitigate adverse rulings or judgments against us in our pending litigation;
• unanticipated changes in availability of trade credit, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments;
• unscheduled generation outages or forced reductions in output, maintenance or repairs;
• adverse changes in general economic and competitive conditions in our service territories; and
• potential additional adverse federal, state, or local legislation or regulation or adverse determinations by regulators.

Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition.
We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contact:
Bobbi Schroeppel
(866) 622-8081
bobbi.schroeppel@northwestern.com

Investor Relations Contact:
Dan Rausch
(605) 978-2902
daniel.rausch@northwestern.com

NorthWestern Files Application to Begin Trading on New York Stock Exchange

web@northwestern.com — Thu, 03 Apr 2008 09:09:15 GMT

SIOUX FALLS, S.D. – April 3, 2008 – NorthWestern Corporation d/b/a NorthWestern Energy (NASDAQ-GS: NWEC) today announced that the Company has filed an application with NYSE Euronext (“NYSE”) to move from the NASDAQ Global Select Market to the NYSE and expects to begin trading on the NYSE under the ticker symbol “NWE” on May 1, 2008. The Company will ring the opening bell on Tuesday May 20, 2008, to celebrate the occasion.

“Today marks an exciting new chapter in NorthWestern’s long history with the NYSE,” said Mike Hanson, President and Chief Executive Officer. “Our return to the NYSE is a testament to NorthWestern’s steady stream of strong financial results over the last three years. NorthWestern is well-positioned for growth, and we look forward to continuing our relationship with the NYSE in order to enhance shareholder value. We are confident that listing alongside our peer group on the NYSE will increase NorthWestern’s visibility with investors.”

"We are pleased to welcome NorthWestern back to our family of listed companies," said Catherine R. Kinney, Group EVP and Head of Global Listings, NYSE Euronext. "We look forward to an outstanding partnership with the company and providing NorthWestern with the superior market quality, brand visibility and information services offered to issuers on the NYSE Euronext."

About NorthWestern Energy

NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.

Media Contact:
Bobbi Schroeppel
(866) 622-8081
bobbi.schroeppel@northwestern.com

Investor Relations Contact:
Dan Rausch
(605) 978-2902
daniel.rausch@northwestern.com

NorthWestern Energy Announces Completion of Moccasin Creek Sediment Remediation Near Milwaukee Avenue Bridge

web@northwestern.com — Tue, 01 Apr 2008 07:29:59 GMT

NorthWestern Energy, in cooperation with the South Dakota Department of Environment and Natural Resources (DENR) and the City of Aberdeen, has completed the remediation of Moccasin Creek sediments near the Milwaukee Avenue Bridge.

Last fall, a section of the creek near Milwaukee Avenue was confined, the water removed and approximately 10,200 tons of sediment was excavated, solidified and disposed. Samples have confirmed that the remaining sediments meet the approved human health and ecological cleanup goals, and normal stream flow within Moccasin Creek has been reestablished. The project was completed safely and on schedule during one construction season.

Final restoration work to be completed this spring includes: additional surface grading, re-seeding and the planting of new trees along the city bike path. The asphalt bike path will also be repaired in areas where it was damaged during the project. NorthWestern Energy wishes to thank the citizens of Aberdeen for their patience and cooperation throughout the project.

Years ago, residual coal tar from a site that housed the Aberdeen Town Gas Plant historically entered a city storm sewer and discharged to Moccasin Creek near the Milwaukee Avenue overpass. The manufactured gas plant (MGP) site was located near the intersection of 1^st Avenue NE and Jackson Street; NorthWestern Energy inherited the site through a purchase of one of its predecessor companies in 1926. The discharge of coal tar to the storm sewer and Moccasin Creek was eliminated, and the affected creek sediments have been removed and disposed.

About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. For more information about NorthWestern Energy, visit our Web site at www.northwesternenergy.com.

Media Contact:
Thomas Glanzer
1 + (877) 410-0154
tom.glanzer@northwestern.com

NorthWestern Corporation Reaches Agreement and Files Motion to Approve Settlement of Litigation with Magten Asset Management and Law Debenture Trust Company of New York

web@northwestern.com — Tue, 18 Mar 2008 17:01:16 GMT

SIOUX FALLS, S.D. – March 18, 2008 – NorthWestern Corporation d/b/a NorthWestern Energy (NASDAQ-GS: NWEC) today announced that a settlement has been reached that would resolve the litigation related to Magten Asset Management's (“Magten”) claims in NorthWestern's Chapter 11 bankruptcy case.

NorthWestern has filed a motion with the U.S. Bankruptcy Court for the District of Delaware (the “Motion”) for an order authorizing and approving a settlement agreement by and among, inter alia, Northwestern, Magten, Law Debenture Trust Company of New York (“Law Debenture”) and the Plan Committee.

The Motion will be heard along with a separate motion to approve an agreement with the Plan Committee providing, among other things, for the reimbursement of certain of NorthWestern’s litigation defense costs, at a hearing scheduled for April 9, 2008. If approved, NorthWestern would receive a reimbursement of previously incurred legal fees of approximately $3.5 million to $4.0 million.

Under the settlement agreement, if approved, the holders of the QUIPS, and Magten and Law Debenture, collectively, will receive approximately $23 million. The payment would come from cash principally funded through the sale of shares of NorthWestern held in the disputed claim reserve established under NorthWestern’s Plan of Reorganization.

It is anticipated that there will be a supplemental distribution from the disputed claim reserve, as soon as is reasonably practicable after the approval of the Motion, to all unsecured creditors and debt holders who have already received an allowed claim distribution of NorthWestern stock or a cash payment. The amount of the supplemental distribution to each of these unsecured creditors and debt holders is not presently known.

“We believe this settlement is in the best interest of NorthWestern and its shareholders as it brings to closure this protracted legal dispute and resolves the last major claim from the 2003 bankruptcy”, said Michael J. Hanson, President and Chief Executive Officer.

It is anticipated that NorthWestern’s bankruptcy case will close by the end of 2008.

More information on this filing and all proceedings on this matter can be found at www.kccllc.net/northwestern.

About NorthWestern Energy

NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.

SPECIAL NOTE REGARDING FORWARD—LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995”. Forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” or “will.” These statements are based upon our current expectations and speak only as of the date hereof. Our actual future business and financial performance may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including, but not limited to:

• our ability to avoid or mitigate adverse rulings or judgments against us in our pending litigation;

• unanticipated changes in availability of trade credit, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments;

• unscheduled generation outages or forced reductions in output, maintenance or repairs;

• adverse changes in general economic and competitive conditions in our service territories; and

• potential additional adverse federal, state, or local legislation or regulation or adverse determinations by regulators.

Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contact:
Bobbi Schroeppel
(866) 622-8081
bobbi.schroeppel@northwestern.com

Investor Relations Contact:
Dan Rausch
(605) 978-2902
daniel.rausch@northwestern.com

Standard & Poor's Ratings Serivces Upgrades NorthWestern's Credit Ratings

web@northwestern.com — Mon, 17 Mar 2008 11:25:51 GMT

SIOUX FALLS, S.D. – March 17, 2008 – NorthWestern Corporation d/b/a NorthWestern Energy (NASDAQ-GS: NWEC) today announced that Standard & Poor’s Ratings Services (“S&P”) upgraded NorthWestern’s long-term corporate credit rating, senior secured ratings and senior unsecured rating as follows:

	From	To
Senior Secured Rating – Montana	BBB	A-
Senior Secured Rating – South Dakota	BBB	BBB+
Senior Unsecured Rating	BB-	BBB-
Corporate Rating	BB+	BBB
Outlook	Positive	Stable

S&P cited a steady improvement in the financial profile of the Company as well as a paring of nonregulated operations. S&P also noted that the Company has shown a commitment to focus on regulated utility operations, including managing regulatory risk and resolving pending litigation.

An immediate result of this upgrade will be a decrease by 25 basis points on the interest rate, a 2.5 basis point decrease on the commitment fees, and certain covenants will fall away on NorthWestern’s unsecured revolver.

About NorthWestern Energy

NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.

Media Contact:
Bobbi Schroeppel
(866) 622-8081
bobbi.schroeppel@northwestern.com

Investor Relations Contact:
Dan Rausch
(605) 978-2902
daniel.rausch@northwestern.com

NorthWestern Sets Date for Annual Meeting of Stockholders

web@northwestern.com — Fri, 29 Feb 2008 09:06:12 GMT

Declares Dividend of 33 Cents Per Share

SIOUX FALLS, S.D. – Feb. 29, 2008 – NorthWestern Corporation d/b/a NorthWestern Energy (NASDAQ-GS: NWEC) reported that it has established May 21, 2008, as the date for the annual meeting of stockholders to be held in New York. The record date for the annual meeting is March 28, 2008, and pursuant to the provisions of the Company’s bylaws, stockholder proposals must be delivered to the Company by March 10, 2008. The proxy statement and annual report to stockholders will be available on the Company’s Web site at www.northwesternenergy.com approximately 40 days prior to the meeting date.

Dividend Declared
NorthWestern’s Board of Directors approved a quarterly common stock dividend of 33 cents per share. The dividend is payable on March 31, 2008, to common stockholders of record as of March 15, 2008.

About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.

Media Contact:
Claudia Rapkoch
(866) 622-8081
claudia.rapkoch@northwestern.com

Investor Relations Contact:
Dan Rausch
(605) 978-2902
daniel.rausch@northwestern.com

NorthWestern Reports 2007 Year End Financial Results

web@northwestern.com — Tue, 26 Feb 2008 12:42:50 GMT

Sioux Falls, S.D. – Feb. 26, 2008 – NorthWestern Corporation d/b/a NorthWestern Energy (NASDAQ-GS: NWEC) today reported financial results for the year ended Dec. 31, 2007.

Highlights for the year:

Net income improved to $53.2 million in 2007 compared with $37.9 million in 2006;
Gross margin improved to $531.7 million in 2007 compared with $519.1 million in 2006;
Operating income improved to $141.1 million in 2007 compared with $110.4 million in 2006;
Regulators in South Dakota and Nebraska approved natural gas rate increases totaling $4.6 million annually;
Filed a proposed settlement with the Montana Public Service Commission that, pending approval, will result in a rate increase of $15 million annually for electric and natural gas rates, and also includes a commitment of 21 MW’s of unit contingent power from Colstrip Unit 4 at Mid-Columbia Electricity Price Index minus $19 per MWh;
Reached a tentative settlement of the Company’s transmission rate case and recognized $1.6 million in interim rates in 2007. This proposed settlement was filed with the Federal Energy Regulatory Commission (FERC) in February 2008 and will result, pending approval, in an annualized margin increase of approximately $3.0 million.
The purchase of our interest in Colstrip Unit 4 was completed, resulting in a reduction of lease expense of $22.1 million, offset by increased depreciation of $6.2 million and interest expense of $11.1 million, annually; and
Standard & Poor’s Rating Group upgraded the Company’s credit outlook to positive from stable.

Financial Results:

Consolidated net income was $53.2 million or $1.45 per basic share and $1.44 per diluted share for the year ended Dec. 31, 2007, compared with consolidated net income of $37.9 million or $1.07 per basic share and $1.01 per diluted share for the year ended Dec. 31, 2006.

“We are well poised to move forward on our strategic generation and transmission growth projects thanks to our continued financial progress,” said Mike Hanson, NorthWestern Energy’s President and CEO. “In 2007, we generated significant cash from core operations that was used to purchase our previously held leasehold interests in the Colstrip Unit 4 generating plant and to pay down our long-term debt to 49% of total capitalization.”

Consolidated gross margin for 2007 was $531.7 million compared with $519.1 million for 2006. Gross margin in the regulated electric segment increased $18.1 million in 2007. Gross margin in the regulated natural gas segment increased $8.7 million in 2007. Gross margin in the unregulated electric segment decreased $10.2 million. Gross margin in the other segment decreased $4.0 million in 2007.

Consolidated operating, general and administrative expenses were $221.6 million in 2007 compared with $240.2 million in 2006. The $18.6 million decrease was primarily due to a $12.6 million recovery of environmental clean up costs included in our South Dakota rate case settlement, higher transaction costs of $12.3 million in 2006 related to the then proposed acquisition of the Company by Babcock and Brown Infrastructure, Ltd. and a reduction in 2007 of lease expense of $11.1 million for the Company’s leased interest in Colstrip Unit 4 generating facility, offset by the inclusion in 2006 results of a $9.3 million reduction in expenses due to an insurance settlement. The Company reclassified the collection of property taxes through the Montana property tax tracker in 2007 resulting in an $11.5 increase to gross margin with a corresponding increase to property tax expense in the same amount. This 2007 reclassification had no impact on earnings comparing 2007 with 2006.

Property and other taxes were $87.6 million in 2007 compared with $74.2 million in 2006. Depreciation expense was $82.4 million in 2007 compared with $75.3 million in 2006. The increase in depreciation expense was related primarily to increased property in service and a $2.0 million increase related to the purchase of the previously leased interest in Colstrip Unit 4.

In February 2007, a jury verdict was rendered against the Company in Montana state court in a case called Ammondson, et al. v. NorthWestern Corporation, et al. Due to the verdict, the Company recognized a loss of $19.0 million in our 2006 results of operations to increase our recorded liability related to this claim.

Interest expense was $56.9 million in 2007 compared with $56.0 million in 2006. The purchase of the leased interest in Colstrip Unit 4 is expected to add approximately $11.1 million in interest expense in 2008.

Results from Regulated Operations

Regulated electric gross margin for 2007 was $347.0 million, up 5.5 percent, compared with $328.9 million in 2006. This $18.1 million increase was primarily due to increased collections on the Montana property tax tracker, which is offset by a corresponding increase in property tax expense, and increased volumes driven by customer growth and warmer summer weather in Montana.

Regulated retail electric volumes for 2007 totaled 9,953,000 megawatt hours compared with 9,742,000 megawatt hours for 2006. The increase was due primarily to customer growth and warmer summer weather in Montana. Wholesale electric volumes were 155,000 megawatt hours for 2007, an decrease from 248,000 megawatt hours for 2006 due primarily to planned and unplanned maintenance outages in the South Dakota generation facilities.

Regulated natural gas gross margin was $127.6 million for 2007, compared with $118.9 million for 2006. The increase was primarily due to increased amounts collected through the Montana property tax tracker, which is offset by a corresponding increase in property tax expense, increased volumes due to customer growth and colder winter weather in South Dakota and Nebraska and the transfer of certain of our previously unregulated natural gas customers and pipelines to the regulated natural gas business.

Regulated retail natural gas volumes were 28,894,000 dekatherms for 2007, compared with 28,093,000 dekatherms for 2006. The increase in volumes was primarily due to customer growth and colder winter weather in South Dakota and Nebraska.

Results from Unregulated Operations

Gross margin from unregulated electric operations was $56.2 million for 2007, a decrease from $66.4 million for 2006 primarily due to lower average contracted prices and higher fuel supply costs in 2007, partially offset by an increase in electric volumes.

Unregulated electric volumes were 1,638,000 megawatt hours in 2007, compared with 1,504,000 megawatt hours in 2006. Electric volumes at Colstrip Unit 4 increased in 2007 compared with 2006 primarily due to strong hydro generation in the Pacific Northwest in 2006 resulting in reduced demand for the Company’s Colstrip power and also in 2006, Colstrip experienced more planned and unplanned outages than in 2007.

During 2007, the Company transferred certain customers and contracts from the unregulated natural gas operations to the regulated natural gas operations. In addition, during 2007 the Company sold a number of unregulated natural gas customer contracts. Therefore, the unregulated natural gas business unit is no longer a reportable segment under FASB Statement No. 131.

Liquidity and Capital Resources

As of Dec. 31, 2007, cash and cash equivalents were $12.8 million compared with $1.9 million at Dec. 31, 2006. In addition, the Company had revolver availability of $158.7 million as of Dec. 31, 2007.

Cash provided by continuing operating activities totaled $202.0 million during 2007, compared with $165.1 million during 2006. This improvement in operating cash flows was primarily due to overcollections in the electric tracker, a decrease in purchases of storage gas and an increase in net income from 2006.

The Company’s financing activities provided $65.4 million in 2007. Sources of cash included $68.8 million in proceeds from the exercise of warrants and issuance of $100 million in debt in connection with purchase of the previously leased interest in Colstrip Unit 4. Uses of cash included dividends paid on common stock of $47.3 million during 2007 compared with $44.1 million during 2006 and pay-down of long-term debt in the amount of $53.5 million.

The Company had capital expenditures of $117.1 million during 2007 compared with $101.0 million in 2006. Also, the Company completed the purchase of its leased interest in Colstrip Unit 4 for $141.3 million plus the assumption of $53.7 million in debt.

2008 Earnings Outlook

Northwestern estimates its earnings per share for 2008 to be between $1.60 and $1.75 per fully diluted share. The guidance assumptions for 2008 include:

Impact of 2007 rate cases in the Company’s service territories, assuming we receive the regulatory approvals in Montana and at FERC;
Decreased lease expense and increased depreciation and interest expense related to the purchase of the previously leased interest in Colstrip Unit 4;
Lower average pricing on forward sales contracts and anticipated output volumes of 1.7 million MWH at Colstrip Unit 4;
Fully diluted average shares outstanding of 39.5 million; and
Normal weather in the Company’s electric and natural gas service territories for 2008.

Company Hosting Investor Conference Call

NorthWestern will host an investor conference call on Thursday Feb. 28, 2008 at 11:00 am Eastern Time (10:00 a.m. Central Time) to review its financial results for the year ended Dec. 31, 2007.

The conference call will be webcast live on the Internet at http://www.northwesternenergy.com under the “Investor Information” heading. To listen, please go to the site at least 10 minutes in advance of the call to register. An archived webcast will be available shortly after the call.

A telephonic replay of the call will be available beginning at noon ET on Feb. 28, 2008, through March 28, 2008, at 800-475-6701, access code 912551.

About NorthWestern Energy

NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.

SPECIAL NOTE REGARDING FORWARD—LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, the information under “2008 Earnings Outlook”. Forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” or “will.” These statements are based upon our current expectations and speak only as of the date hereof. Our actual future business and financial performance may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including, but not limited to:

our ability to avoid or mitigate adverse rulings or judgments against us in our pending litigation;
unanticipated changes in availability of trade credit, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments;
unscheduled generation outages or forced reductions in output, maintenance or repairs;
adverse changes in general economic and competitive conditions in our service territories; and
potential additional adverse federal, state, or local legislation or regulation or adverse determinations by regulators.

Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

# # #

Media Contact:
Claudia Rapkoch
1 + (866) 622-8081
claudia.rapkoch@northwestern.com

Investor Relations Contact:
Dan Rausch
(605) 978-2902
daniel.rausch@northwestern.com

NorthWestern Energy Announces Filing of Montana Transmission Rate Settlement Agreement

web@northwestern.com — Wed, 20 Feb 2008 15:11:13 GMT

NorthWestern Corporation d/b/a NorthWestern Energy (NASDAQ-GS: NWEC) today announced that it has filed an agreement with the Federal Energy Regulatory Commission (FERC) that, if approved, would settle the company’s pending transmission rate case before the regulatory body.

The proposed settlement addresses costs associated with providing transmission service and the pass through of costs to provide ancillary services. The settlement revises the transmission rate structure from one based on load ratio share to a stated rate for network customers. Using a stated rate provides rate certainty for transmission customers and NorthWestern Energy.

A transmission rate increase for network and point-to-point customers was filed in October 2006 and made effective in May 2007, subject to refund. This was the first rate filing since rates were last adjusted in 1998. As a result of settlement negotiations with intervening parties, a new stated rate of $3.16/kW per month for reserved capacity will be established for network and point-to-point customers. This agreement does not affect retail customers in Montana because their relevant transmission costs are part of the pending Montana general rate case filing.

The proposed rate for point-to-point customers represents an increase of about 1.94%, which equates to an annual increase in gross margin of approximately $3 million. The company recognized approximately $1.6 million of this increase in gross margin in 2007.

About NorthWestern Energy

Northwestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving more than 640,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.

Media Contact:
Claudia Rapkoch
1 + (866) 622-8081
claudia.rapkoch@northwestern.com

Investor Relations Contact:
Dan Rausch
(605) 978-2902
daniel.rausch@northwestern.com

NorthWestern Energy Encourages Customers to Act Now to Save Energy

web@northwestern.com — Thu, 07 Feb 2008 15:45:40 GMT

Butte, Mont. – February 7, 2008 – Winter is upon Montanans and many people are thinking about what they can do to save energy and stay warm. NorthWestern Energy is providing some tips that customers can act upon now – rather than waiting for the spring thaw.

First, schedule a FREE energy audit on your home to find out how to better manage this winter's heating costs. Second, customers are encouraged to take action on the recommendations from the audit to begin reaping the rewards in energy savings.

"The easiest and cheapest way to save energy is to become aware of what you're using it for," said Deb Young, NorthWestern Energy's Efficiency Plus (E+) program manager. "With the E+ Audit for the home, our space and water heating customers receive information customized to their home and their lifestyle that helps them make choices that can reduce the amount of energy they use."

"Customers find that the audit helps them focus their energy saving efforts on the most cost effective measures. It also makes them more aware of how energy efficiency can be incorporated into home remodeling and additions," added Young. Insulation in the attic, crawl space, and/or basement walls are frequently the major measures recommended in an audit. Savings from these measures in comparison to costs to install them usually add up quickly. Other recommendations may focus on behaviors.

A pair of energy conservation specialists from KEMA, NorthWestern Energy's audit contractor, arrives at the customer's home at the scheduled time and get right to the task. They take measurements of the home, its windows and doors, and insulation levels. Customers answer questions about how they use energy, what appliances are used, and how often. A blower-door test identifies air leaks and shows whether or not the home is in need of air-sealing measures. Conversely, the test may indicate that additional outside air is needed to improve the health and safety of occupants. When appropriate, the heating system receives an operational and safety check, the water heater is wrapped with a snug insulating blanket to keep heat in, and low-flow showerheads and faucet aerators are installed. Compact fluorescent light bulbs (CFLs) are installed in high-use locations and, if needed, materials to seal up some air leaks identified with the blower-door test are provided to the customer.

Within a couple weeks of the audit, the customer receives the E+ Audit report with charts showing how much of their energy dollar is going to various uses in the home such as heating, lights, air conditioning, or laundry based upon the customer's answer to questions in the audit. The report provides specific recommendations for measures to install and actions to take.

The E+ Audit for the home is available to NorthWestern Energy customers who heat their home with electricity or natural gas delivered by NorthWestern Energy. Other qualifications apply. To find out if your home qualifies, call (800) 823-5995. If your home has been previously audited under the E+ Audit program, call for a copy of the audit report so that you can take the recommended actions before the mercury drops next winter.

The E+ Audit is part of Universal System Benefits (USB) activities funded by all NorthWestern Energy customers. USB programs include energy efficiency, renewable resource, and low-income energy assistance activities. NorthWestern Energy offers the E+ Energy Appraisal for Small Businesses to its small commercial electric customers and provides an E+ Energy Survey by mail to its residential electric customers who heat their home and hot water with energy that is not delivered by NorthWestern Energy.

About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 640,000 customers in Montana, South Dakota and Nebraska. For more information about NorthWestern Energy, visit our Web site at www.northwesternenergy.com.

Media Contact:
Deb Young - Program Coordinator
(406) 497-2339
deb.young@northwestern.com