Helena, Montana – Key Montana utility provider NorthWestern Energy has formally asked state authorities permission to raise rates for its natural gas and electric operations. Starting this October, this action—the first such request in two years—could see costs climb for hundreds of thousands of Montanans.
Documents submitted with the Montana Public Service Commission (PSC) indicate NorthWestern Energy is requesting an interim rate increase that would add around $2 to the monthly bills of average residential electricity consumers and $5 for those using natural gas. These developments are only the start; the business intends to raise prices again in 2025, therefore bringing the overall monthly rise to roughly $9 for both services.
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The company argues that the suggested raises are required to pay for maintaining infrastructure and covering the expenses of reliably supplying energy. The anticipated increase breaks out with extra $22 million for energy service. This amount covers base revenue needs, $7 million for property tax modifications, and a $36 million power cost deduction. NorthWestern wants to get almost $21 million more from its consumers for its natural gas service.
NorthWestern Energy’s plan calls for these tariff changes to enable more frequent charge review requests. This will help the business prevent major, unexpected increases—often known as “rate shock”—that can overwhelm consumers.
The request aligns with the October 2023 last rate review of the corporation. Prior to that, natural gas rates in 2016 and electricity rates in 2018 were last under review. Company officials claim that this strategy is meant to balance the financial impact on its customer base, which includes approximately 405,000 electric and 212,000 natural gas consumers all throughout the state.
The PSC will now begin the process of reviewing these proposals, a procedure expected to last around nine months. Public hearings will be set during this time so consumers and stakeholders may express their thoughts and concerns before any new tariffs are approved and implemented.
