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Why did this happen?
- In July 2024, NorthWestern filed for a rate hike, but the Montana Public Service Commission (PSC) didn't act within nine months.
- A little-known state statute then allowed the utility to self‑implement their requested rates.
The controversy grows
- PSC President Brad Molnar criticized the move, calling it “the wild West in utility regulation,” and said the delay was partly NorthWestern’s fault. The PSC now has the authority to revise the rates in an upcoming hearing—and require refunds, with interest, if they're deemed excessive.
- Utility experts say this is the first time this law has been used in Montana. One regulator reflecting on four decades in utility oversight said, “I have never seen this done, not in my history".
- The hike primarily funds the $300M Yellowstone County Generating Station near Laurel. The plant’s roll-out has been delayed, causing concerns about over-collection—with refunds promised later if the PSC lowers rates.
What’s next?
- A two‑week PSC hearing began on June 9, 2025, to assess how much of the increase should stand. If deemed unfair, NorthWestern must refund customers with interest.
- Meanwhile, the PSC is also reviewing a quarterly adjustment that could bump bills by another ~$9/month, possibly bringing the total increase to 25%+ by July.
What it means for Montanans
- If you rely heavily on electricity—especially during peak summer or winter months—your energy costs have just jumped significantly.
- Keep an eye on the PSC’s decision this summer. If they roll back any rate increases, refunds will be issued—with interest.
- This case highlights growing concerns about transparency and regulatory oversight in utility rate setting.
Final Takeaway
NorthWestern Energy’s unilateral 17% rate hike underscores how powerful yet little‑known statutory provisions can have a major impact on consumers. As the June 9 hearing unfolds, residents in Montana are watching closely—it could either reset the state’s approach to utility oversight or set a new precedent.
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