NorthWestern Energy electric rates higher than regional peers - NBC Montana

NorthWestern Energy electric rates higher than regional peers | KECI

MISSOULA, Mont. — Montana’s utility regulation commission has come under criticism recently for an agreement that lets the state’s largest power company, NorthWestern Energy, implement a 28% residential electric rate increase. With some help from retired MTN News reporter (and occasional MTFP contributor) Mike Dennison, we’ve compiled a comparison of the residential electricity rates charged by different utilities around the region, estimating the typical monthly electric bills paid by residential customers who consume 750 kilowatt-hours of power each billing period.

Though still below the national average, the state’s largest utility, NorthWestern Energy, is a bit spendy when compared to its peers serving homes in Washington, Oregon, Idaho, Wyoming and Utah — as well as some of the companies that provide service in the portions of Montana outside of NorthWestern’s coverage area.

Our analysis estimates that the typical NorthWestern residential customer’s bill is 6% higher than the second-most-expensive utility and 73% higher than the most affordable utility in our round-up, Idaho Power, which obtains about one-third of the power it transmits to the larger Boise area from hydroelectric sources.

NorthWestern points out that some of its aforementioned peers, such as Rocky Mountain Power, are in the midst of rate reviews like the one NorthWestern just wrapped up, which could mean higher rates are coming for their customers. Company spokesperson Jo Dee Black also said that 16% of the per-kilowatt-hour rate incorporated into NorthWestern’s residential rate structure can be attributed to local and national taxes. (If that cost was stripped from power bills, we estimate the typical 750-kWh NorthWestern customer would pay about $96 a month, on par with the existing rates for Montana-Dakota Utilities customers.)

While NorthWestern and some other utilities also provide their customers with natural gas service, these numbers represent the costs for electric power alone. The utilities in our sample typically charge their customers a base rate for monthly service and then add a per-kilowatt-hour rate that scales based on electricity consumption. Where that rate varies between winter and summer, we’ve calculated our figures using time-weighted average rates. Additionally, we’ve sourced the national average we’re presenting here to the U.S. Energy Information Administration.

AMANDA EGGERT | ENVIRONMENTAL REPORTER

aeggert@montanafreepress.org

Amanda Eggert studied print journalism at the University of Montana. Prior to becoming a full-time journalist, Amanda spent four years working with the Forest Service as a wildland firefighter. After leaving the Forest Service in 2014, Amanda worked for Outside magazine as an editorial fellow before joining Outlaw Partners’ staff to lead coverage for Explore Big Sky newspaper and contribute writing and editing to Explore Yellowstone and Mountain Outlaw magazines. Prior to joining Montana Free Press’ staff in 2021 Amanda was a freelance writer, researcher and interviewer. In addition to writing... More by Amanda Eggert

ERIC DIETRICH | DEPUTY EDITOR

edietrich@montanafreepress.org

Eric came to journalism in a roundabout way after studying engineering at Montana State University in Bozeman (credit, or blame, for his career direction rests with the campus's student newspaper, the Exponent). He has worked as a professional journalist in Montana since 2013, with stints at the Great Falls Tribune, Bozeman Daily Chronicle, and Solutions Journalism Network before joining the Montana Free Press newsroom in Helena full time in 2019. More by Eric Dietrich