Regulatory Environment

    We are a regulated utility

    A variety of federal and state agencies regulate NorthWestern Energy. They provide oversight in our mission to provide safe, reliable and affordable service. Our utility operations are subject to federal, state and local laws and regulations concerning service areas, tariffs, issuances of securities, employment, occupational health and safety, protection of the environment and other matters.

    The Montana Public Service Commission, the South Dakota Public Utilities Commission, the Nebraska Public Service Commission and the Federal Energy Regulatory Commission review and authorize the rates our customers pay for our utility services.

    Montana

    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

    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

    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

    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.

    FERC Tariff Browser

    FERC's eTariff Viewer allows the public access to view the status of Tariffs which have been submitted to FERC. See NorthWestern Corporation - Montana OATT tariffs.
    Montana OATT

    FERC Standards of Conduct

    Enhancing Reliability

    We are paying close attention to the changing energy landscape, and we have serious concerns about our capacity needs. We are in the process of adding more resources to our portfolio to meet our customers’ peak energy demands.
    Learn about all our ESG initiatives