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.