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Regulated accounting is appropriate provided that (i) rates are established by or subject to approval by independent, third-party regulators, (ii) rates are designed to recover the specific enterprise's cost of service, and (iii) in view of demand for service, it is reasonable to assume that rates are set at levels that will recover costs and can be charged to and collected from customers., This would result in a charge to earnings and accumulated other comprehensive loss (AOCL), net of applicable income taxes, which could be material., If our credit rating were to fall below investment grade, the counterparties could require immediate payment or demand immediate and ongoing full overnight collateralization on contracts in net liability positions., See Note 5 - Regulatory Assets and Liabilities, for further discussion on how these costs are recovered through rates charged to our customers., This charge is recorded within other income, net on the Consolidated Statements of Income.

Regulated accounting is appropriate provided that (i) rates are established by or subject to approval by independent, third-party regulators, (ii) rates are designed to recover the specific enterprise's cost of service, and (iii) in view of demand for service, it is reasonable to assume that rates are set at levels that will recover costs and can be charged to and collected from customers., This would result in a charge to earnings and AOCI, net of applicable income taxes, which could be material., All expenditures for maintenance and repairs of utility plant are charged to the appropriate maintenance expense accounts., If our credit rating were to fall below investment grade, the counterparties could require immediate payment or demand immediate and ongoing full overnight collateralization on contracts in net liability positions., See Note 5 - Regulatory Assets and Liabilities, for further discussion on how these costs are recovered through rates charged to our customers.

Regulated accounting is appropriate provided that (i) rates are established by or subject to approval by independent, third-party regulators, (ii) rates are designed to recover the specific enterprise's cost of service, and (iii) in view of demand for service, it is reasonable to assume that rates are set at levels that will recover costs and can be charged to and collected from customers., This would result in a charge to earnings and AOCI, net of applicable income taxes, which could be material., All expenditures for maintenance and repairs of utility plant are charged to the appropriate maintenance expense accounts., If our credit rating were to fall below investment grade, the counterparties could require immediate payment or demand immediate and ongoing full overnight collateralization on contracts in net liability positions., This charge is recorded within operating expenses, net on the Statements of Income.

The Commission collects annual charges from licensees for the administration of the FPA., From 2006 through 2015, winter total internal demand is projected to grow at annual compound rates of 1.6 percent., Because capacity margins for this winter-peaking area range between 23.7 and 30.3 percent for the next 6 years, the ability to meet peak demand is expected to be adequate for the next 6 years., Oregon, Washington, and western Montana coordinate the operation of hydroelectric resources to serve demand. 56., Administrative Annual Charges.

Regulated accounting is appropriate provided that (i) rates are established by or subject to approval by independent, third-party regulators, (ii) rates are designed to recover the specific enterprise's cost of service, and (iii) in view of demand for service, it is reasonable to assume that rates are set at levels that will recover costs and can be charged to and collected from customers., This would result in a charge to earnings and AOCI, net of applicable income taxes, which could be material., All expenditures for maintenance and repairs of utility plant are charged to the appropriate maintenance expense accounts., If our credit rating were to fall below investment grade, the counterparties could require immediate payment or demand immediate and ongoing full overnight collateralization on contracts in net liability positions., See Note 5 - Regulatory Assets and Liabilities, for further discussion on how these costs are recovered through rates charged to our customers.

NorthWestern believes this three- 12 year period reasonably normalized the uncollectible accounts. 13 14 Column G, line 164, presents the adjustment for Universal System Benefits 15 Charge (“USBC”) expense of ($10,385,408)., Normalized revenues were calculated by multiplying the current base 3 transmission, distribution, and generation rates, plus the current base and 4 incremental property tax rates, by each of the billing determinants (test period 5 usage, demand usage, and number of customers) for each customer class. 6 Miscellaneous revenues were added to that product. 7 8 Q., NorthWestern normalized 20 the miscellaneous low-income discount revenues to zero, as NorthWestern 21 recovers the amount through the USBC charges that are tracked through a 22 separate annual tracker. 23 EAR-41 Q., Normalized revenues were calculated by multiplying the current base 20 transmission, distribution, and production rates, plus the current base and 21 incremental property tax rates, by each of the billing determinants (test period 22 EAR-45 usage, demand usage, and number of customers) for each customer class. 1 Miscellaneous revenues were added to that product. 2 3 Q., NorthWestern 10 normalized the miscellaneous low-income discount revenues to zero, as 11 NorthWestern recovers the amount through the USBC charges that are 12 tracked through a separate annual tracker. 13 14 Q.

These charges are subject to regulation by the State Utility Com- missions and, where appropriate, the Federal Regulatory Commission. 5., Supply Service is the charge for the amount of electricity or natural gas you use., We never demand prepaid cards, If NorthWestern Energy needs to upgrade or replace a meter, the cost of the new meter is not charged to the individual customer, • Any over payments will be applied to your NorthWestern Energy account and used to cover future charges.

For 4 comparison, NorthWestern signed an agreement for capacity in 2023 for 40 5 megawatts totaling $720,000 to meet its Planning Reserve Margin portion of the 6 Resource Adequacy Requirement within the SPP. 7 8 Adjustments #5, #6, #7 – Labor Expense, Payroll Taxes, and 401K 9 Contribution 10 Consistent with prior ratemaking treatment, actual base year labor allocated or 11 directly charged to South Dakota operations was increased 2.7% annually for 12 2023 and 3.02% for 2024, as per the contract covering bargaining unit 13 employees., Schedule H-3 includes a 3 normalizing entry of $91,388, which removes the economic development costs 4 allocated to South Dakota electric customers that are above the capped amount 5 dictated in Docket EL14-106. 6 7 Adjustment #13 – Association Dues 8 NorthWestern charges the lobbying portion of dues expense to Account 426.4, 9 which appropriately removes them from ratemaking., See Schedule H-12 for details. 22 23 Adjustment #28 – Carrying Charges 24 JBB-18 During the test year, the Company recorded interest income from customers 1 calculated on under-collected tracker balances., Doesthisfilingincludeany lobbying costs, charitable donations, mergers 14 and acquisitions expenses, demand side management, severance expense, 15 or non-utility costs?

If Jake ignores Bill’s concerns, Bill should immediately go to the foreman on site (person in charge) and relay his observations., Sexual harassment: when an employee is subject to unwelcome verbal, visual or physical sexual behavior that is severe or pervasive; or when the satisfaction of a sexual demand is used as the basis of an employment decision, This goal considers Montana’s unique geography, terrain, weather and factors in the challenge we face in Montana of not having enough energy available under peak demand times as coal plants within Montana and the region shut down.

Regulated accounting is appropriate provided that (i) rates are established by or subject to approval by independent, third-party regulators, (ii) rates are designed to recover the specific enterprise's cost of service, and (iii) in view of demand for service, it is reasonable to assume that rates are set at levels that will recover costs and can be charged to and collected from customers., This would result in a charge to earnings and accumulated other comprehensive loss (AOCL), net of applicable income taxes, which could be material., If our credit rating were to fall below investment grade, the counterparties could require immediate payment or demand immediate and ongoing full overnight collateralization on contracts in net liability positions., See Note 5 - Regulatory Assets and Liabilities, for further discussion on how these costs are recovered through rates charged to our customers., This charge is recorded within other income, net on the Consolidated Statements of Income.

It is simple 8 supply and demand economics., The Company must undertake investments to meet growing demand and provide 16 for necessary maintenance and replacements of its utility systems as it continues to 17 provide safe and reliable service to its customers., [C]ertain types of adjustment clauses are more prevalent than others. 3 For example, those that address electric fuel and gas commodity charges 4 are in place in all jurisdictions., A s Value 19 Line noted: 20 Weather is a factor that affects the demand for natural gas, especially 21 from small commercial businesses and consumers., NorthWe s t e r n m u s t c o mpete with other investment 9 opportunities and unless there is a reasonable expectation that investors will have the 10 opportunity to earn returns commensurate with the underlying risks, capital will be 11 allocated elsewhere, the Company’s financial integrity will be weakened, and investors 12 will demand an even higher rate of return.

In the ongoing Project, NorthWestern currently installs meters with a secure two-way communication solution that is read by a fixed wireless network providing timely and on-demand data., Polyphase watt-hour meters and single-phase watt-hour meters equipped with demand registers or using instrument transformers. 1., Polyphase watt-hour meters and single-phase watt-hour meters equipped with demand registers or using instrument transformers. 1., “Sustainable procurement really makes us look at a lot of what we buy, a n d h o w w e c a n reduce waste and reduce demand for new materials,” he said., All residential customers with non-standard meters are eligible to participate with the exception of residential customers with net meters, time of use meters or demand registers.

Use of the site is offered free of charge for year-round pub lic d ay use from dawn to dusk., The site and Project amenities are available free of charge for year-round public d ay use (dawn-dusk)., The park is available free of charge for year-round public day use (dawn to dusk)., The site is available free of charge for year-round public day use (dawn to dusk)., The Recreation Report will identify sign ificant issues, concerns, or needs for improvemen ts to meet recreational demand at Project recreation sites.

Therm) 15 Distribution Charge 1 $ 0.2098629 $ 20.99 - ----- -- - 16 Transmission Charge 1 $ 0.1242724 $ 12.43 17 Storage Charge 1 $ 0.0378218 $ 3.78 - ----·--- 18 Gas Supe!, What happens if a contingency takes place and there is inadequate deliverability to meet demand?, Sheet No. 18.3 Reservation Charges for Firm Services: The Reservation Charge is the demand component of the finn service rate schedules., However, our 4 customers' demand is extremely seasonal with roughly 69% of the 5 total yearly demand occurring over the five winter months (November - 6 March)., First, the supply of gas is firm; this means that it is available during critical or high demand times.

Programs Montana Consumption and Revenues Natural Gas Universal System Benefits Programs Montana Conservation and Demand Side Mgmt., Charges to MT Utilit• !, All expenditures for maintenance and repairs of utility plant are charged to the appropriate maintenance expense accounts., See Note 6 - Regulatory Assets and Liabilities, for further discussion on how these costs are recovered through rates charged to our customers., On August 30, 2016, PNWS sent us a demand letter demanding that we enter into power purchase agreements for 21 solar projects and threatening to sue us for $106 million ifwe did not accede to its demand.

Regulated accounting is appropriate provided that (i) rates are established by or subject to approval by independent, third-party regulators, (ii) rates are designed to recover the specific enterprise's cost of service, and (iii) in view of demand for service, it is reasonable to assume that rates are set at levels that will recover costs and can be charged to and collected from customers., This would result in a charge to earnings and AOCI, net of applicable income taxes, which could be material., All expenditures for maintenance and repairs of utility plant are charged to the appropriate maintenance expense accounts., If our credit rating were to fall below investment grade, the counterparties could require immediate payment or demand immediate and ongoing full overnight collateralization on contracts in net liability positions., This charge is recorded within operating expenses, net on the Statements of Income.

Total control area peak demand was approximately 1,909 MW 17 on January 27, 2021., The Company must undertake investments to meet growing peak demand needs 3 and provide for necessary maintenance and replacements of its utility systems as it 4 continues to provide safe and reliable service to its customers., Aggregate 1 demand is strong, and bottlenecks and supply constraints are limiting 2 how quickly production can respond., In February 2021, Winter Storm Uri resulted in uncharacteristically frigid 3 temperatures that disrupted natural gas supplies and power plant operations at a time of 4 unprecedented winter electricity demand., [C]ertain types of adjustment clauses are more prevalent than others. 7 For example, those that address electric and fuel and gas commodity 8 charges are in place in all jurisdictions.

During that time, utility earnings were under considerable 9 pressure, which prompted jurisdictions to allow more timely recovery of 10 cost increases that were beyond the control of the utilities. 30 11 12 As explained above, alternative regulation has been of increased interest 13 in recent years due to rising and volatile utility costs, growth in non- 14 revenue producing capital expenditures, and sluggish demand and sales 15 growth, which, as noted earlier, puts pressure on traditional volume- 16 based, cost-of-service ratemaking., JEN-36 Figure 11: Montana PSC Regulatory Environment 32 Ratemaking Practice and Alternative Ratemaking Mechanism Commission P r a c t i c e Notes Ratecasetimeframe 9months TestYearMethodology Historic Knownandmeasurable adjustmentswithin12 monthsbeyondendof testperiodallowed Rate Base Methodology Averageoriginalcost Knownandmeasurable adjustmentswithin12 monthsbeyondendof testperiodallowed Interim Rates Allowed, subject to refund Interimrateshistorically not authorized until after intervenor testimony is filed Infrastructure Surcharges AFUDCincludedinrate base Expensecosttracking Mechanisms Allowed:FuelandPower CostTracking,Universal SystemBenefits Charge (conservation, and low- income weatherization and bill assistance); taxes and fees PCCAMrecovers only 90% of fuel and non-QF purchased power costs compared to the amount in base rates; PCCAM Base Costs updates currently occur only in rate reviews Capital cost tracking Mechanism None Revenue Stabilization

The first component of the project proposal includes the purchase of 5 Interagency Grizzly Bear Committee (IGBC)-approved bear-resistant double-wide garbage cans (~$11k) to support the requirement that, according to the Federal Lands Recreation and Enhancement Act (FLREA), standard amenity sites must provide a “permanent trash receptacle” in order to charge a recreation fee (16 USC Ch. 87 §6802., FLREA mandates that standard amenity sites must provide a “permanent trash receptacle” in order to charge a recreation fee (16 USC Ch. 87 §6802., Regarding public access, implementation of infrastructure required to charge day-use fees will provide the support necessary to do more than just the minimum of keeping recreation sites open, supporting the DFO’s ability to continue meeting the following goal, “Develop and maintain appropriate recreation facilities, balancing public demand, protection of Public Land resources, and fiscal responsibility” (DFO Resource Management Plan (RMP) 2006).

CSF-6 • Stakeholder Processes related to Low Income, 4 Demand Side 1 Management (“DSM”), 5 and Alternative Ratemaking. 2 In addition, I discuss NorthWestern’s approach to addressing the 3 Commission’s requirement for a full economic analysis of the expected 4 benefits of Advanced Metering Infrastructure (“AMI”) compared to the 5 stranded costs for existing metering infrastructure. 6 I also discuss 6 NorthWestern’s request to initiate a rulemaking to amend Administrative 7 Rules (“ARM”) 38.5.1405 and 38.5.1405. 8 9 Updates from Prior Requirements in 2022 Rate Review 10 Q., a ratio of average bills to average income on an 21 aggregate basis. 22 23 CSF-9 NorthWestern’s calculation of Electric and Natural Gas Share of Wallet was 1 included with its 2024 filings reporting on 2023 Universal System Benefits 2 activities for Electric 13 and Natural Gas, 14 respectively, as well as in the 3 docket for NorthWestern’s 2022 Rate Review 15 and are provided below. 4 Charts 1 and 2 below show that over the past 5 years, electric and natural 5 gas service have remained below 2% of share of wallet for both residential 6 and low-income residential customers. 7 8 Chart 1: Electric Share of Wallet as of February 28, 2024 9 10 13 See Attachment B “Electric Share of Wallet Calculations”, NorthWestern’s 2023 Electric Universal System Benefits (USB) Report, Montana Public Service Commission Docket No. 2024.01.003 (2024). 14 See Attachment B “Natural Gas Share of Wallet Calculations”, NorthWestern’s 2024 Natural Gas Universal System Benefits Charge, If 12 telephone or personal contact is not made, the utility employee 13 shall leave notice in a place conspicuous to the customer that 14 service will be terminated on the next business day unless the 15 delinquent charges have been paid. 16 17 It further provides that “[w]hen service is terminated, the utility employee 18 terminating service must also leave notice upon the premises in a place 19 conspicuous to the customer that service has been terminated which gives 20 the address and telephone number of the utility where the customer may 21 arrange to have service restored.”