New Electricity Bill Increase in MT Comes With Controversy

BUTTE, MT - Without warning, NorthWestern Energy customers across Montana are seeing a major spike in their electricity bills.

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The price hike took effect before it was reviewed by the state’s utility regulators, catching many off guard. So, what happened...and what’s next?

Here's everything you need to know, including how much your bill will increase.

How Is This Even Legal? The Nine-Month Loophole

NorthWestern Energy utilized a rarely-invoked Montana law that allows a monopoly utility to implement its requested rate changes if the PSC fails to make a decision within nine months of the filing.

NorthWestern’s request was submitted in July 2024, and with no ruling by May 2025, the utility moved ahead—legally.

PSC President Brad Molnar called the move a “very high-risk maneuver” and said the utility was unwilling to wait just two more weeks for the scheduled hearing.

The Laurel Gas Plant: A Key Driver Behind the Increase

A large portion of the rate hike stems from the $300 million Yellowstone County Generating Station—a 175-megawatt gas plant near Laurel.

When NorthWestern filed its rate proposal, it assumed that all 18 units of the plant would be operational.

They weren’t.

That miscalculation has raised concerns. Jenny Harbine, an Earthjustice attorney involved in the case, said the filing was “inflated,” and customers are now paying for power that isn’t being produced.

Regulators, Critics, and Customers React

Veteran utility regulator Gary Duncan stated that in his four decades of experience, he has “never seen this done.”

He also expressed concern that neither the PSC nor NorthWestern informed the public in advance, despite the hike affecting tens of thousands of households.

Molnar added that this decision will disproportionately affect households that use electricity (not natural gas) for cooling and heating—especially troubling as Montana enters the air conditioning season.

So, How Much Has NorthWestern Raised Customer Bills?

Montana residents who receive electricity from NorthWestern Energy—nearly two-thirds of the state—are now paying an average of $17.07 more per month, totaling about $204 extra per year.

This increase was enacted without approval from the Montana Public Service Commission (PSC), the state’s utility watchdog.

Refunds Are Possible—But Not Guaranteed

A two-week hearing is scheduled to begin June 9, where the PSC will review NorthWestern’s rate case.

If the commission decides the rate increase is too high, customers may be refunded the difference, with interest.

NorthWestern spokesperson Jo Dee Black said the company looks forward to “presenting its case fully and transparently” at the hearing.

What Montana Residents Should Expect Next

Until the PSC rules, the higher rates are locked in.

Residents should brace for larger utility bills this summer, especially if they rely heavily on electric cooling.

While the hearing could reverse some of the increase, it remains to be seen whether Montanans will get any relief—or whether this maneuver will set a new, less regulated precedent for utility rate hikes in the state.

Final Takeaway

If you’re a NorthWestern Energy customer, your electricity bill likely just went up — and you weren’t notified. The coming weeks will determine whether that increase holds, or whether refunds are issued. But for now, the money is out of your pocket.