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NorthWestern Energy files notice for natural gas rate increases

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BUTTE — Montana officials are reviewing a request from NorthWestern Energy for an interim rate adjustment designed to modify natural gas rates for core and non-core customers. The application, filed with the Montana Public Service Commission (PSC), seeks to address various cost factors associated with the utility's natural gas supply and distribution.

NorthWestern filed a notice to the PSC on Friday, May 30, 2025. The notice follows news reported earlier this week that the company had made a 17 percent rate hike without telling customers. Approximately 400,000 electric customers in Montana will see an increase an increase that works out to, on average, about $17 more on their monthly bill.

The proposed adjustments, detailed in Docket No. 2024.07.076, include an interim rate increase for Core Customers to reflect forecasted natural gas costs and the Unreflected Gas Cost Account (UGCA) balance, along with adjustments related to the Gas Transportation Adjustment Clause (GTAC). The changes would also include an interim rate decrease for core and core aggregation customers tied to the Transportation Business Unit (TBU) GTAC balance.

If approved, the proposed rates and monthly adjustments would take effect on July 1, 2025, pending a final decision by the Commission. NorthWestern's request involves:

  • Increasing residential natural gas supply rates from $0.2706599 to $0.3105127 per therm.
  • Raising general service natural gas supply rates from $0.2743330 to $0.3141858 per therm.
  • Increasing firm utility natural gas supply rates from $0.2671806 to $0.3070334 per therm.

A therm is equal to 100 cubic feet of natural gas.

The proposal also includes provisions for the deferred UGCA balance, which indicates an under-collection of $1,618,113 for the 12 months ending June 30, 2024. Additionally, the filing presents a GTAC balance over-collection of ($754,520), which NorthWestern plans to refund to customers over the 12 months concluding June 30, 2026.

Residents interested in reviewing the filing and supporting documents can access them by searching for Docket No. 2023.07.068 on the Commission's website.

The Montana Consumer Counsel (MCC) is available to assist with consumer representation in this matter; for assistance, individuals can reach the MCC at 406-444-2771.

Responses concerning NorthWestern's request may be submitted to the Commission at P.O. Box 202601, Helena, MT 59620-2601, as soon as possible.

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