MONTANA RATE REVIEW
We’re committed to being a responsible steward of Montana’s energy resources. We recognize that our rate request will impact customers and we’re committed to helping customers who may be struggling with their bills.
Myths or Facts? Understand The Facts Behind NorthWestern’s Rate Review
There's a lot of talk about NorthWestern Energy’s proposed rate changes — but not all of it is true. It’s time to separate fact from fiction and understand why these changes are crucial for ensuring reliable energy for our customers and avoiding an energy crisis.
You've Heard the Myths
Now get the facts about NorthWestern's rate review in Montana.
Myth:
The settlement proposed by NorthWestern Energy and other parties includes a 26% rate increase for residential customers.
Fact:
If approved by the Montana Public Service Commission, the proposed new electric rate, based on the partial settlement and NorthWestern's proposals, will be $4.63 or 4.21% monthly bill increase for a typical electric residential customer, compared to July 2024 rates.
If approved by the Montana Public Service Commission, the proposed new natural gas rate, based on the settlement, will be $4.74 or 9.13% monthly bill increase for a typical natural gas residential customer, compared to July 2024 rates.
Myth:
NorthWestern Energy’s residential customers’ interests are not represented in rate reviews.
Fact:
The Montana Consumer Counsel advocates for consumers in hearings before the Montana Public Service Commission and did so in NorthWestern Energy’s regulatory rate review. The Montana Consumer Counsel is a party in the partial electric rate settlement and the full natural gas rate settlement.
Myth:
NorthWestern Energy is investing in natural gas and coal generation in Montana instead of resources that will be economically viable for the long term.
Fact:
NorthWestern Energy needs more resources that can generate power on demand, 24/7, located in Montana and dedicated to serve Montanans to meet our responsibility to provide our customers with reliable energy service, keep them safe in all weather conditions and avoid an energy crisis.
NorthWestern Energy’s Montana electricity supply mix includes 33% carbon-free hydro and about 24% renewable energy generation, including wind and solar. Renewable energy is used when available, but since we can’t control the wind or sun, our power supply needs reliable backup resources to meet demand. Today, those resources are existing coal and new natural gas plants. That is why we have agreed to take on a larger share of the Colstrip Plant and that is why we made the investment to build the Yellowstone County Generating Station.
Myth:
NorthWestern Energy’s residential customers are bearing the heaviest costs in the settlement agreement.
Fact:
Cost of service studies show that some customer classes subsidize others. The large industrial customers are still subsidizing residential customers with this settlement.
Myth:
NorthWestern Energy’s Montana rates are the highest in the region.
Fact:
NorthWestern Energy rates are below the national average for both electric and natural gas in Montana, in fact, natural gas is over 40 percent lower than the national average. There are 113 electric and natural gas energy service providers in the United States going through regulatory rate reviews right now.
Our Commitment to Transparent Rate Reviews
At NorthWestern Energy, we strive to keep our customers informed about changes that may impact their energy bills. We understand that energy bills can be a significant expense for many households. That's why we conduct regular rate reviews to ensure that our rates are fair and transparent. Stay informed about our current rate reviews and learn more about how we're working to keep energy affordable for our customers.
Building a bright future for Montana communities
We're invested in Montana’s future, powering homes, businesses and communities where we all live and work.
NorthWestern Energy Outlines How $1 Billion of Investments Deliver Direct Benefits in Safe, Reliable Power for Montana Customers
Date: Jun 9, 2025
TYPE: News
Helena, Mont. – June 9, 2025 – In opening remarks before the Montana Public Service Commission on the first day of the hearing on NorthWestern Energy’s request for a regulatory rate review, Sarah Norcott, Director of Regulatory Corporate Counsel for NorthWestern explained how the company’s investments benefit customers—both now and in the long term.
“We understand that any increase in utility bills is difficult, especially when families are already managing rising costs in other areas,” Norcott said. “That’s why we’ve worked hard to keep the impact as low as possible while still making the critical investments needed to keep the lights on and the heat flowing.”
Norcott said that although NorthWestern invested more than $800 million in its electric system over the past two years, the electric settlement results in a 1.7% revenue increase, below the originally proposed 8.3%. For the average residential customer, this translates to a 4.2% increase in their electric rate.
“NorthWestern accomplished this feat by making prudent decisions, managing costs, and always keeping our customers’ needs at the center of our planning,” she said.
Norcott detailed how those investments strengthen Montana’s energy infrastructure:
- $158 million in electric transmission infrastructure, including substation rebuilds and wildfire mitigation.
- $197 million in electric distribution infrastructure, supporting wildfire mitigation and customer growth.
- $390 million in electric generation, including upgrades to hydro facilities and the construction of the Yellowstone County Generating Station (YCGS).
“These aren’t abstract numbers,” Norcott said. “They represent real improvements that help prevent outages, reduce wildfire risk, and ensure we can meet demand during Montana’s coldest nights and hottest days.”
She also emphasized that the YCGS project will ultimately reduce costs for customers.
“Customers will see a benefit overall in their net rates due to YCGS over the long term,” she said.
“Who is NorthWestern?” Norcott asked. “We are the people who show up—because we live here too.”
She shared an example. One cold evening this year in Anaconda, 71-year-old Derinda Johnson slipped on her icy sidewalk while taking out the trash. Alone and unable to get up, she waved desperately for help. It was Tom Wind, NorthWestern’s Anaconda Town Manager, who noticed her while driving home. He turned around, rushed to her side, and helped her safely back into her home.
“According to Derinda, he saved her life,” Norcott said. “This story personifies NorthWestern and what we are about.”
“While there is a lot of noise and opinions about the decisions NorthWestern makes, we take our responsibility seriously to keep the lights on and the heat flowing,” Norcott said. “The evidence in this case will show that the decisions NorthWestern has made over the last two years were prudent and comply with Montana law. What I ask is that you hear the evidence, you remember the reasons NorthWestern made these decisions – to provide safe, reliable and affordable utility services. ”
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NorthWestern Energy - Delivering a Bright Future
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 787,000 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. Our operations in Montana and Yellowstone National Park are conducted through our subsidiary, NW Corp, and our operations in South Dakota and Nebraska are conducted through our subsidiary, NWE Public Service. We have provided service in South Dakota and Nebraska since 1923 and in Montana since 2002.
Media Contacts:
Jo Dee Black
866-622-8081