NorthWestern Energy Files Annual Electricity and Natural Gas Supply Trackers in Montana

NorthWestern Energy (NYSE:NWE) yesterday submitted its annual filings with the Montana Public Service Commission to true-up its electric and natural gas supply costs beginning July 1, 2014.

These costs are adjusted monthly based on forecasted market rates and are trued up once a year to adjust for differences between the forecasted costs collected in rates and the actual costs incurred during the same period. With the annual filing, NorthWestern is also updating its electricity and natural gas supply rate forecast.

The natural gas supply tracker includes market supply purchases and NorthWestern’s ownership of the Bear Paw and Devon natural gas production and gathering assets and a request for continued permission to collect the costs related to those assets on an interim basis.

The projected natural gas supply rate, including the supply deferred cost, represents a decrease of $15.73 per month, or $188.76 per year, for a typical residential customer who uses 100 therms per month. The change would result in an overall decrease of 14.22% on the total bill. The actual decrease will depend on individual customer type and usage.

The electric rate tracker filing includes market supply purchases and variable costs and credits associated with Colstrip Unit 4, Dave Gates Generating Station and the Spion Kop Wind Generation asset.

The projected overall electric supply cost and the net supply deferred cost in this filing, plus a decrease in the Competitive Transition Charge for Qualifying Facilities (CTC-QF) results in an overall increase of $5.01 per month, or $60.12 per year, on a typical residential bill. That represents an overall bill increase of an estimated 6.44%. The actual increase will depend on each individual customer type and usage.

The rate adjustment is primarily due to the fact that actual market-based electricity supply costs exceeded the level of estimated costs previously reflected in rates during the 12-month cost tracking period ending June 30, 2014. This resulted in an under-collection of $32,044,199, which is needed to cover the actual costs during that period.

The anticipated 12-month projection for the electric tracker does not include costs related to NorthWestern’s pending acquisition of hydroelectric dams. The company is requesting approval to change electric and natural gas rates on an interim basis beginning July 1, 2014, pending formal regulatory reviews and approvals later in the year.

The filings, and supporting information, are posted on our website at http://www.northwesternenergy.com.

About NorthWestern Energy

NorthWestern Energy provides electricity and natural gas in the Upper Midwest and Northwest, serving approximately 678,200 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the company’s website at http://www.northwesternenergy.com.