Montana PSC Delays Final Decision on NorthWestern Rates and Potential Refunds

Montana PSC Delays Final Decision on NorthWestern Rates and Potential Refunds

The Montana Environmental Information Center is raising concerns regarding a recent press release from the Montana Public Service Commission (PSC) about refunds for NorthWestern Energy customers. Despite the PSC’s claims of finality, the situation remains ambiguous.

Nick Fitzmaurice, an energy transition engineer at the Montana Environmental Information Center, stated that he collaborates on various environmental issues to promote clean air, water, and energy solutions. He pointed out that while NorthWestern Energy filed for a rate increase scheduled for July 2024, the PSC’s decision-making process, which has been ongoing for several months, still involves critical unresolved issues.

Fitzmaurice explained that NorthWestern had instituted an interim rate increase in May 2025, which customers have been paying. He noted that if the PSC’s final ruling allows NorthWestern to impose rates lower than the interim rate, customers could receive refunds to account for the difference.

However, Fitzmaurice flagged that the commission recently opted to postpone the issuance of its final order for up to a month, leaving customers uncertain about their future billing and the timeline for potential refunds. He remarked on the unexpected nature of the PSC’s press release, suggesting it may be premature given that many details remained unclear.

The PSC’s statement indicated that part of NorthWestern’s proposal concerning the $246 million Yellowstone County Generating Station was disallowed, leading to a reduction of $43 million in their request. Fitzmaurice asserted that, despite these reductions, most Montanans will face an increase in their power bills starting in July 2024, primarily due to the construction expenses linked to a new gas-fired power plant in Laurel.

Alana Lake, the PSC’s executive director, explained in an email that under the Montana Administrative Procedure Act, the commission has 90 days from the initiation of a contested case to render a final decision, with an option for a 30-day extension for good cause. The recent vote to utilize this extension was deemed warranted due to the case’s complexity and the necessity for a thorough review.

Fitzmaurice cautioned that uncertainties remain about how the cost impacts will be distributed among customer classes until the final order is released. He emphasized that, despite the PSC staff’s identification of issues within NorthWestern’s proposal and the apparent acceptance of those findings by the commission, crucial details will only be resolved with the final written order.

He urged Montanans to stay informed and attentive to forthcoming announcements, as electricity bills are a tangible reality impacting many residents.

The PSC’s decision comes after a 16-month evaluation filled with public input and scrutiny surrounding NorthWestern Energy’s request. While some customer savings and commitments to greater transparency were highlighted, environmental advocates argue that consumers should refrain from expecting refunds or reduced bills until the official order is finalized.

As both officials and advocates work to clarify the situation, there remains hope that the PSC’s upcoming decisions will ultimately lead to a more informed and beneficial outcome for consumers.

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