Montana Public Service Commission Finds NorthWestern Energy Rate Application Again Fails to Meet Minimum Filing Standards
Earlier today, at its regular business meeting, the Montana Public Service Commission (PSC) voted unanimously to approve a Notice of Commission Action finding NorthWestern Energy’s recent response to its rate adjustment application again failed to meet the Commission’s “minimum filing standards.” This was the second action by the Commission this month determining that the company has failed to meet the Agency’s filing standards.
On July 10, 2024, NorthWestern filed an application with the PSC to revise its electric and natural gas service rates, service schedules, cost allocation, and rate design. The filing, known as a “rate case,” was assigned Docket No.2024.05.053.
All applications for such rate adjustments are subject to the requirements of Montana Administrative Rules 38.5.101 through 38.5.195. Rule 38.5.184 requires the PSC to notify the utility within 30 days of any failure to comply with the minimum rate case filing standards. A previous Notice of Commission Action made on August 6, 2024 identified multiple deficiencies in the NorthWestern rate application and, in turn, gave the company two weeks to file a response correcting the deficiencies.
Specifically, the August 6 Notice of Commission Action cited nine “deficiencies that impair reasonable judgements of the merits” of the application; eleven “deficiencies that do not impair reasonable judgement of the merits” of the application; and three additional issues which the Commission identified to ensure compliance with other Commission orders.
NorthWestern’s Response and Supplemental filing to the Commission on August 9, 2024 corrected almost all of the deficiencies found in its initial application. However, one important deficiency remains in NorthWestern’s most recent filing. Under Montana Administrative Rule 38.5.176 applicants must sufficiently describe the development of their “cost of service” (COS) results. This information is critical in that the COS study is the fundamental tool for the Commission to evaluate and establish just and reasonable utility rates. The Commission ruled today that this key deficiency still remains; and additional detail and justifications will be necessary in order for the Commission to consider the application.
As a result of today’s unanimous Commission decision, NorthWestern was given an additional week to file the necessary documentation with the Commission.
PSC President James Brown said of today’s Commission action, “In order for the Commission to consider a rate case, the PSC requires very specific economic and business data of any monopoly utility applicant that seeks to adjust the rates they charge Montana ratepayers. Compliance with these rules is essential for the PSC to do its regulatory work. To date, NorthWestern has failed to meet this critical information standard. Therefore, the Commission cannot move forward with considering Northwestern Energy’s combined gas and electric rate case until the company first comes into compliance with Montana law.”
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 http://psc.mt.gov or contact the Commission at 1-800-646-6150. Follow the Commission at Twitter.com/@MT_PSC or visit Facebook.com/MontanaPSC [facebook.com].
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