BUTTE — Nine months after making a request to the Montana Public Service Commission (PSC) to raise energy rates, Northwestern Energy is using a little-known state law to raise those rates without telling customers.
"I mean, just the concept of raising it makes sense. You need to do that at some point, but doing it without telling people, without any sort of public comment... It's not very good optics for a company to do that out of nowhere, especially for a significant increase that could really affect people," says NorthWestern Energy customer Ryan Hessler.
Watch: Energy rate hike hits customers unannounced
"They should be informing the customers before they do something like that... and why?" says NorthWestern Energy customer Molly Ross.
Hessler and Ross are two of the approximately 400,000 electric customers in Montana who will see an increase of 17% increase that works out to an average of about $17 more on their monthly bill.
"I mean it's not nothing for a lot of people," says Hessler.
NorthWestern Energy spokeswoman Jo Dee Black says service delivery fees are the reason for the rate hike.
"Those are things like what these guys are doing right here," says Black as she gestured to a team installing gas lines along Aluminum Street in Butte.
"The pipes in the ground, wires, poles, all those things that we need, the infrastructure that is required to bring energy service to our customers."
The increase was first reported by the Montana Free Press, which found that the rate hike that went into effect on May 23 and was not reported to customers or approved by the PSC, which will hold a hearing in June regarding NorthWestern's initial rate hike request that was made in July 2024.
"There is a statute that allows them to do this. I don't think I've ever seen anyone else do this in the past, and we are looking forward to this hearing to be able to hear from all parties involved," says PSC executive director Alana Lake.
"The Commission will set just and reasonable rates. If the Commission's final approved rates are less than those currently in effect, customers will receive refunds for any overcharges, with interest," says Lake.
"We expect the Montana Public Service Commission decision, and to have final rates this fall. So, this rate likely won't be a whole year," says Black.
Follow this link to comment on the upcoming hearing taking place in Helena on June 9 regarding NorthWestern Energy's rate hikes.
