HELENA — The Montana Public Service Commission (PSC) has approved a rate reduction this week for NorthWestern Energy (NWE) customers. In a press release, the agency stated it is aiming to protect consumers and maintain fair utility rates. This decision follows an examination over several months, including a contentious 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 Alana Lake, PSC Executive Director. “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.”
Initially, NWE filed for an 8.3% increase in customer rates in July 2024, citing costs associated with electric service delivery and the construction of a new generating plant. In May 2025, the utility raised rates without Commission approval, leveraging a Montana statute that permitted such action.
However, NWE later filed for a reduced rate, which was approved by the PSC on Tuesday. Consequently, the utility will implement a 4.2% rate increase instead of the original 8.3%. This adjustment comes from a settlement agreement involving several key parties, including the Montana Consumer Counsel, which advocates for consumer interests.
The PSC's decision passed with a 3-2 vote and will take effect immediately, reflecting on the next billing cycle.
The ongoing rate case may see further adjustments, with NWE required to submit its opening brief by July 21. Intervenors are expected to file response briefs by August 11, followed by NWE’s replies by August 26. The Commission will continue its thorough analysis of the evidence before a final decision is issued later this year.
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