NorthWestern Energy (Nasdaq: NWE) has recently reached settlement agreements in its Montana electric and natural gas regulatory rate review with various stakeholders. The agreements, once approved, will lead to rate increases for customers effective July 1, 2024. Natural gas customers can expect a 9.14% monthly increase, while electric customers will face a 4.21% monthly increase. These settlements will increase annual natural gas base revenues by $18 million and electric base revenues by $66.4 million. The agreements also set Return on Equity (ROE) at 9.60% for natural gas and 9.65% for electric operations.
The settlement agreements have been viewed positively, with $18 million increase in annual natural gas base revenues and $66.4 million increase in annual electric base revenues. However, the rate increases for customers have been seen as a negative aspect of these agreements. The Yellowstone County Generating Station’s projected $4.1 million annual rate benefit for Montana customers remains a point of contention. Despite this, the settlements provide NorthWestern Energy with financial predictability and support for its infrastructure investment needs.
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