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Enriching Lives Through a Safe, Sustainable Energy Future
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Straight Answers on Data Centers and Montana’s Energy Future
Date: Jan 27, 2026
TYPE: News
NorthWestern Energy Vice President Distribution Jason Merkel
Montanans deserve straight answers about data centers and what their arrival could mean for our energy system. Questions raised recently are fair ones, and I appreciate the opportunity to address them directly. At NorthWestern Energy, our commitment is—and will remain—protecting the customers and communities we already serve.
It’s important to be candid about what will—and will not—take place if new large‑load customers, including data centers, enter our system.
What Will Not Happen
Your reliability will not suffer.
We will not connect any customer whose energy demand compromises the reliability Montana families and businesses depend on. For us, reliability is not negotiable.
Your rates will not increase to pay for someone else’s infrastructure.
Under the Large Load Tariff we will propose, new high‑demand customers must pay the their fair share of the cost of the transmission, generation, and distribution upgrades they require. They will also post security deposits and pay exit fees if they leave before those costs are recovered. These tools protect existing customers from stranded or shifted costs.
There will be no hidden discounts or special deals at your expense.
Rates for large-load customers are set in a public process through the Montana Public Service Commission. They are not privately negotiated and cannot be used to subsidize big customers at the expense of residential ratepayers.
Montana doesn’t need to repeat the mistakes made in other states. With guardrails crafted for Montana’s interests, we can ensure those outcomes won’t happen here.
NorthWestern Energy Montana energy rates are already below the national average – this framework is designed to keep them that way
What Will Happen
Transparent, predictable rules.
The proposed Large Load Tariff will create a clear framework for new large-load customers. It will provide regulatory certainty and ensure accountability.
Fairness across all customer classes.
Our responsibility is ensuring that new large‑load customers cover the costs they create. That is guiding how we develop this tariff and plan for the future.
Potential long‑term benefits for residential customers.
When large load customers pay their full share, and when our system is used more efficiently, the overall cost can be shared across more customers. While no energy company can predict future rates with certainty, it’s realistic that residential customers may benefit over time from the growth they are not being asked to subsidize.
Economic opportunity for Montana communities.
Data centers—and the industries that support them—bring long-term investment, local tax revenue, and good-paying jobs. With careful planning and strong safeguards, we can grow our economy without compromising fairness or reliability.
Working From Shared Priorities
Ms. Kirk calls for three things: fair rules, transparency, and protection for everyday people.
We agree with all three.
The purpose of the Large Load Tariff is to ensure exactly that—before new customers connect, not after problems arise. The concerns she raised are not criticisms we reject; they are priorities we share.
Montana has the advantage of learning from states where rapid growth outpaced regulation. We will not repeat those mistakes.
Moving Forward Together
Montana does not face a choice between protecting customers and supporting new economic opportunities. With the right safeguards—and we are putting them in place—Montana can do both.
We will continue moving forward with transparency, accountability, and a focus on long‑term value for the customers and communities we serve.
I appreciate the engagement from consumer advocates, local leaders, and Montanans across the state—those conversations strengthen our decisions.
Montana customers come first, today and as our energy future evolves.