The Montana Public Service Commission has given final approval to NorthWestern Energy’s planned merger with Black Hills Energy – one of the last hurdles the companies needed to clear to complete the transaction.
On Tuesday, commissioners voted 3-2 in favor of the merger, but not before they added two conditions to the approval, asking the utility to develop plans for how they might use their newly increased share of electrical generation at the Colstrip power plant.
NorthWestern is Montana’s largest utility, serving more than 400,000 electric customers and 250,000 natural gas customers across the state. Its parent company also serves customers in South Dakota and Nebraska. Black Hills Energy operates utilities that serve 1.35 million customers in eight states, including a few commercial, industrial and residential electric customers in southeastern Montana.
Last year, the two companies announced their parent companies would merge. NorthWestern and Black Hills would continue their utility operations under their current names, but they would be under a holding company called Bright Horizon Energy – based in Black Hills’ headquarters of Rapid City, South Dakota, and with NorthWestern CEO Brian Bird as CEO.
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Commissioners who supported the merger echoed the companies’ arguments, saying it would make the utilities stronger, more efficient and better able to access financing. Those who voted against it argued the ratepayers were not receiving enough direct benefit from the deal.
In a statement, NorthWestern said they are awaiting the PSC’s final written order.
“Black Hills Corporation and Northwestern Energy Group, Inc. continue to believe that the proposed merger is in the best interest of our customers,” the statement said. “If completed, the merger will position us to successfully continue delivering safe, reliable and affordable energy to the communities we serve with expanded scale, strong local roots and a shared commitment to service.”
