- Natural gas customers are set to experience a 9.14% rate increase, translating to an additional $4.74 monthly cost for typical residential usage.
- Electric customers will face a 4.21% increase, amounting to a $4.63 monthly hike for typical residential usage.
- The settlements will result in an annual increase of $18 million in natural gas base revenues and $66.4 million in electric base revenues for NorthWestern Energy (NWE, Financial).
NorthWestern Energy (NWE) has successfully negotiated settlement agreements in its Montana regulatory rate review, culminating in prospective rate hikes for both natural gas and electric customers starting July 1, 2024. These settlements mark a significant development for the utility as it seeks to bolster revenue streams essential for future infrastructure investments.
For natural gas customers, the agreed-upon settlements envision a 9.14% monthly rate augmentation, equating to a $4.74 increase based on typical residential consumption. Electric customers will observe a 4.21% climb in monthly charges, corresponding to a $4.63 rise for average residential usage.
Financially, these settlements are poised to boost NorthWestern Energy's annual natural gas base revenues by $18 million and electric base revenues by $66.4 million. When considering the Yellowstone County Generating Station request, the total electric base revenue request stands at $110.3 million, although the net revenue increase post-adjustments will be $14.6 million.
The settlements delineate authorized returns on equity (ROE) of 9.60% for natural gas operations and 9.65% for electric operations, incorporating a 47.8% equity component for both. These metrics align closely with industry benchmarks, offering NorthWestern Energy a robust financial framework for ongoing and future capital expenditures.
The agreements have garnered support from a diverse array of stakeholders, including consumer advocates, major industrial customers, and federal agencies, showcasing NorthWestern Energy's adeptness in regulatory relationship management.
