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Montana PSC Approves Partial Rate Increase for NorthWestern Energy

Montana PSC disallowed $43 million in avoidable overruns but approved recovery of $246 million for NorthWestern's 175-MW gas plant near Laurel, with tentative cost recovery starting next year.

  • On Wednesday the Montana Public Service Commission gave tentative authorization to recover costs for the 175-megawatt Yellowstone County Generating Station near Laurel, disallowing some proposals and directing staff to finalize by Dec. 24.
  • PSC staff concluded planning and procurement were deficient, noting NorthWestern Energy omitted low-cost battery-plus-engine pairings and failed to document contractor changes or cost increases.
  • The commission rejected $43 million of NorthWestern Energy’s original ask, while staff recommended trimming the YCGS rate base to $227.7 million from the $289 million request tied to 16 engines.
  • The PSC said its decision will likely lead to lower costs for consumers, noting prior unilateral rate increases by NorthWestern Energy for about 413,000 Montanans.
  • The review has lasted about 16 months and included an eight-day hearing in June, with Public Service Commission staff recommending cost recovery plus a 9.65% return on equity and officials warning of continued scrutiny in coming months.
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KULR-TV broke the news in Billings, United States on Wednesday, November 19, 2025.
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