Regulatory Environment

Montana regulatory environment

• The Montana Public Service Commission (MPSC) regulates NorthWestern Energy’s Montana rates and tariffs.
• NorthWestern Energy supplies electric and natural gas to residential, commercial, and industrial customers. 
• Our electric business operates as a vertically integrated generation, transmission and distribution utility with bundled packages of generation, transmission, distribution, meter reading, billing and other services.
• Gas customers, as well as electric customers under certain commercial and industrial tariffs, have the ability to choose an alternative supplier.
• NorthWestern recovers its costs of providing service, with the opportunity to earn a return on its investment up to a percentage, through rates approved by the MPSC in a general rate review.
• NorthWestern generally recovers expenses for electricity and natural gas purchases through annual tracker filings and rates approved by the MPSC.
• NorthWestern evaluates its portfolio of resources for the electric utility in its triennial Electric Supply Resource Procurement Plan. 
• The Electric Technical Advisory Committee advises NorthWestern Energy in the preparation of its triennial Electricity Supply Resource Procurement Plan.
• NorthWestern Energy owns natural gas production and storage assets.
• We file a Natural Gas Supply Resource Procurement Plan with Montana Public Service Commission.  

South Dakota regulatory environment

• The South Dakota Public Utilities Commission regulates NorthWestern Energy's South Dakota rates and tariffs.
• We have the exclusive right to serve assigned electric service areas and nonexclusive municipal franchises to serve cities with natural gas.
• Our electric business operates as a vertically integrated generation, transmission and distribution utility with bundled packages of generation, transmission, distribution, meter reading, billing and other services.
• Competition exists for natural gas supply. 

Nebraska regulatory environment

• The Nebraska Public Service Commission regulates NorthWestern Energy’s Nebraska rates and tariffs.
• We have nonexclusive municipal franchises to serve cities with natural gas.
• Competition exists for natural gas supply.
• Fuel adjustment clauses in natural gas rate tariffs allow us to pass commodity costs through to our customers. 

Federal regulatory environment

• The Federal Power Act defines NorthWestern Energy as a public utility.
• We are subject to Federal Energy Regulatory Commission (FERC) regulations.
• FERC regulates our transmission rates and assets.