Montana’s largest energy utility has asked state regulators to allow them to charge customers more. This comes after rates went up nearly 30% last fall, and state regulators want more information about the company’s latest request.
NorthWestern Energy wants a rate increase of at least 8% for electric and gas energy. But the increase could be triple that, depending on the costs of fuel, power traded on the open market and the future of the utility’s gas fired power plant in Laurel — which is awaiting a Supreme Court decision.
The company says it needs more money from customers to recover costs associated with generating power.
Approval of this kind of increase in customers' energy bills falls on the Public Service Commission. Last October, commissioners approved a 28% electrical rate increase for resident and small business customers of NorthWestern.
But this time PSC analysts say NorthWestern didn’t give enough information to justify a need to charge customer’s more. Vice President Jennifer Fielder told the utility during a recent hearing it must explain the rate increase.
“I know that my constituents, at least, and I suspect all of ours, would like us to turn over every stone in these rate cases. And examine the data substantiating the claims and verify the validity of those claims,” Fielder said.
The process of deciding on a rate increase takes months, and these are the early steps. NorthWestern recently submitted additional information to the PSC.
Regulators will decide next week whether the company has justified its price increase.
