MPSC Rules NorthWestern Energy May Re-file General Rate Filing to Comply With State Minimum Filing Requirements
November 19 2009 - 6:00AM
PR Newswire (US)
BUTTE, Mont., Nov. 19 /PRNewswire-FirstCall/ -- NorthWestern Energy
(NYSE: NWE) announced today that the Montana Public Service
Commission (MPSC) recently determined that the Company's general
rate case filing on Oct. 16, 2009, did not meet the MPSC's
applicable minimum filing requirements, primarily related to
allocated cost of service and rate design. In its rate case filing,
NorthWestern proposed a revenue requirement increase of
approximately $1.96 million for its natural gas utility and
approximately $15.5 million for its electric utility.
NorthWestern's proposed filing also included new cost allocation
between rate classes and rate designs. The proposals introduced an
inclining block residential rate structure that would assign more
costs to residential customers that use more energy within each
rate class. Under this methodology, some customers would see higher
increases than the average residential customer while other
residential customers may experience lower than average rates. In
response to the MPSC's action, NorthWestern submitted a motion for
reconsideration or in the alternative, if it is denied, a motion to
bifurcate the general rate case into a revenue requirement
proceeding and an allocated cost of service and rate design
proceeding. The Company believes the motion to reconsider bears
merit because the filing does, in fact, comply with the MPSC's
filing requirements. In addition, should the MPSC deny the motion
for reconsideration, the motion to bifurcate would allow a
separation of the overall revenue requirement from the allocated
cost of service and rate design rules, allowing a proceeding on the
revenue requirement to continue. NorthWestern expects the MPSC to
rule as early as next week on the motions. If the MPSC's initial
determination stands, the Company expects to correct the
deficiencies and re-file the rate case. If a re-filing is required,
the rate case decision likely would be delayed from the third
quarter of 2010, as previously anticipated, to the fourth quarter
of 2010. About NorthWestern Energy NorthWestern Energy provides
electricity and natural gas in the Upper Midwest and Northwest,
serving approximately 656,000 customers in Montana, South Dakota
and Nebraska. More information on NorthWestern Energy is available
on the Company's Web site at http://www.northwesternenergy.com/.
DATASOURCE: NorthWestern Energy CONTACT: Media, Claudia Rapkoch,
1-866-622-8081, ; or Investor Relations, Dan Rausch,
+1-605-978-2902, Web Site: http://www.northwesternenergy.com/
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