Some Energy Prices Rising, Others Remain Steady
Author: Eliza McLaughlin
Some Energy Prices Rising, Others Remain Steady
Eliza McLaughlin
With winter just around the corner, NorthWestern Energy customers in Broadwater County and around the state will see an interim increase in their monthly electric and natural gas bills while the Montana Public Service Commission reviews the company’s regulated rates and costs associated with providing energy services. The Public Service Commission approved NorthWestern’s request to temporarily raise their rates by $90.5 million for the transmission, distribution and generation of electricity and $1.7 million for natural gas during its Sept. 27 work session, after reducing it from the company’s original request of $114.7 million for electric services and $5.8 million for natural gas services.
The approved increases were first applied to customers’ monthly bills by $11.19 for electric and $0.48 for natural gas on Oct. 1. NorthWestern’s application stated that the commission should approve a temporary rate increase “because NorthWestern’s current rates are no longer just and reasonable and do not allow NorthWestern an opportunity to recover its cost of providing services to customers.”
Jo Dee Black, NorthWestern’s public relations specialist, told MT43 News that the company’s current rates for services are based on cost information from 2015 for natural gas and 2017 for electricity.
“If the permanent rates are lower than interim rates that were put in place, then customers get a refund either through a lower rate or some other mechanism, and that refund includes interest,” Black said.
The Montana Environmental Information Center was the only intervener in the case opposing the approval of an interim rate hike until the commission reviewed all the evidence presented in the regulatory rate review.
Gary Duncan, a program manager for the Public Service Commission, informed the commissioners that it would take approximately nine months to collect all the data while reading the staff report which recommended the adjusted interim rate be approved.
Vigilante Electric General Manager Rollie Miller told MT 43 News that although rising costs have impacted the company, it has no plans to increase its rates. “We’re seeing enough growth to absorb those costs,” he said. Miller said that inflation in costs has been offset by Vigilante Electric’s expansion, adding that the company will host its annual meeting at the Watson Center in Broadwater County in March of 2023. “We have no intention of raising our rates for the upcoming year, and that's through the whole system, Broadwater County included,” he said. Miller added that Vigilante Electric has “the lowest rates in the state.”
Black said the interim rates will allow NorthWestern to recover some of its previous investment costs as the rate review takes place, adding that since the 2015 and 2017 rate reviews, NorthWestern has invested more than $1 billion on energy infrastructure in Montana. “That billion dollars of investments is not reflected in the rates,” Black said.
NorthWestern is aware that rising rates could put low-income Montanans in a bind, Black said. However, there are options available to help these customers cover their bills. “We know many Montanans are facing challenging times, and no one wants to see rising energy bills,” Black told MT43 News. “We care about our customers and want them to know we are here to help.”
NorthWestern can provide customers in need with energy assistance programs and arrange for flexible payment options. Montanans and residents of other states can also apply for the Low Income Home Energy Assistance Program (LIHEAP), a federally funded program that helps “reduce the costs associated with home energy bills, energy crises, weatherization, and minor energy-related home repairs,” according to the Office of the Administration for Children and Families. NorthWestern customers who qualify for LIHEAP will automatically receive a discounted energy rate, Black said. She also clarified that NorthWestern does not process the applications.
Residents of Broadwater County can contact the Helena - Rocky Mountain Development Council at (406) 447-1625 to apply for LIHEAP and other assistance programs.
“We really encourage people to apply for that program,” Black said.
Contact NorthWestern Energy at (888) 467-2669 or visit northwesternenergy.com for more information.
