Press Release: Lower Rates To Be Effective Immediately

LOWER RATES TO BE EFFECTIVE IMMEDIATELY

July 3, 2025

PSCMedia@mt.gov

406-444-6199

HELENA, Montana — In a decisive move to protect Montana consumers and ensure utility rates remain fair and just, the Montana Public Service Commission (PSC) approved a substantial rate reduction for NorthWestern Energy (NWE) customers this week. The Commission's action comes after months of rigorous scrutiny, culminating in a highly contested rate case and an eight-day evidentiary hearing.

“This Commission and staff take seriously the PSC’s mandate to protect the public interest while balancing those of the utility,” said PSC Executive Director Alana Lake. “After careful evaluation of the law and arguments presented by all sides, the Commission’s action this week will prevent ongoing unnecessary rate hikes for Montana families and businesses.”

In its initial filing in July 2024, NWE requested an 8.3% increase in customer rates to cover investments and expenses tied to electric service delivery costs and construction of a new electric generating plant. In May 2025, under Montana statute allowing them to do so, NWE implemented these rates without Commission approval.

However, the utility subsequently filed for a lower rate which the Commission approved Tuesday. As a result, NWE will only be permitted to implement a 4.2% rate increase instead of the 8.3% increase they originally requested and implemented in May. The lower rate is based on a settlement agreement reached by several major parties to the case including the Montana Consumer Counsel who is responsible for representing consumer interests in Montana.

The downward rate adjustment, which passed with a 3-2 vote by the Commissioners, will go into effect immediately and will reflect on the next billing cycle, offering swift financial relief to consumers.

The rate case is ongoing and rates may be further adjusted when the Commission issues a final order.  NWE has until July 21st to submit its opening brief. Intervenors must file response briefs by August 11th, and NWE will have the opportunity to reply by August 26th. The Commission will continue its comprehensive and impartial analysis of the record evidence before issuing a final decision later this year.

This outcome underscores the PSC's commitment to transparency, public input, and evidence-based regulation. The PSC remains focused on delivering long-term value to Montanans while ensuring that utility companies operate in a manner that is both responsible and sustainable.

The Commission regulates private investor-owned natural gas, electric, telephone, water, and sewer companies, certain motor carriers, and oversees natural gas pipeline safety and intrastate railroad safety. The Commission works to ensure that Montanans receive safe and reliable service from regulated public utilities while paying reasonable rates. For more information, visit psc.mt.gov or contact the Commission at 1-800-646-6150.  Follow the Commission at x.com/MT_PSC or visit facebook.com/MontanaPSC.