Montana’s Electric Bills See ‘Big Increase’ Soon, Find Out Why

BUTTE, MT - If you live here in Montana, your bills may see an increase coming soon.

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NorthWestern Energy has recently submitted a proposal to increase electricity rates, sparking concern among customers throughout Montana. With the potential for higher monthly bills, many are left questioning: who will be affected, how much more they'll have to pay, and when these changes might take place.

Let's break down the essential information you need to stay informed.

Who Will Be Affected?

The proposed rate hike will impact all of NorthWestern Energy's electricity customers in Montana, including:

• Residential Customers: Households may see a noticeable increase in their monthly energy bills. Look below for how much.

• Commercial and Industrial Users: Businesses could face higher operational costs due to increased energy expenses.

• Low-Income Families: Those already struggling financially may find the rate increase particularly challenging.

How Much Will Rates Increase?

NorthWestern Energy is seeking a total annual increase of $193 million, divided as follows:

• Electricity Customers: An additional $164 million per year.

• Natural Gas Customers: An additional $29 million per year.

Impact on Monthly Bills

• Residential Electricity Bills: An average increase of 8%, translating to about $9.10 more per month.

• Interim Rate Increase: The company has requested an interim rate hike that could take effect as early as October 1, adding $51 million for electricity and $21 million for natural gas annually until a final decision is made.

Why Is NorthWestern Energy Raising Rates?

Several factors contribute to the proposed rate hike:

1. Infrastructure Investments:
   • New Gas Plant: The recently constructed gas-powered plant near Laurel, costing over $310 million, is a significant expenditure.
   • Upgrades: Investments in power poles, natural gas pipelines, and other infrastructure improvements.
2. Regulatory Compliance:
   • Environmental Regulations: Upcoming EPA regulations require expensive upgrades to the Colstrip coal plant to reduce toxic emissions, potentially exceeding $600 million.
3. Operational Costs:
   • Property Taxes: An estimated $8 million annual increase in property tax expenses.
   • Maintenance and Labor: Rising costs in day-to-day operations necessitate additional revenue.

Concerns and Criticisms

• Market Sales Projections:
  • NorthWestern plans to increase electricity sales to other utilities, projecting $190 million in annual sales to offset the rate hike.
  • Experts question the feasibility of this big increase, suggesting that unrealistic projections could leave customers bearing the cost if targets aren't met.
• Transparency Issues:
  • Consumer advocacy groups and former regulatory analysts express concern over the lack of detailed justifications for the proposed increases.
  • Critics argue that customers might be responsible for shortfalls if NorthWestern's projections fail to materialize.
• Financial Impact on Consumers:
  • With previous rate increases already straining budgets, the additional hike could be burdensome, especially during extreme weather that spikes energy usage.

Conclusion

The proposed rate hike by NorthWestern Energy could have significant financial implications for many Montanans. While the company emphasizes the necessity of the increase for future sustainability and reliability, customers have understandable concerns about the added financial burden.

Staying informed and actively participating in the review process are key steps consumers can take in response to this development.