NorthWestern Energy Announces Settlement Agreement With Montana Consumer Counsel
07 Dezembro 2007 - 11:01PM
PR Newswire (US)
Preliminary rate settlements reached in South Dakota and Nebraska
SIOUX FALLS, S.D., Dec. 7 /PRNewswire-FirstCall/ -- NorthWestern
Corporation d/b/a NorthWestern Energy (NASDAQ:NWEC) and the Montana
Consumer Counsel today filed a joint stipulation with the Montana
Public Service Commission to settle the company's recent general
rate case filing. The terms are subject to Public Service
Commission approval. The agreement, if approved, would settle the
general rate case filed this past summer in NorthWestern's electric
and natural gas utilities in Montana. Terms of the stipulation
include: -- An increase in electric utility delivery service rates
of $10 million annually; -- An increase in natural gas utility
delivery service rates of $5 million annually; -- NorthWestern
Energy will file for an interim rate adjustment to place the
stipulated rates in effect as of January 1, 2008, if the processing
and approval of this stipulation and agreement by the Commission
are not completed by that date; -- NorthWestern will continue to
make capital investments in 2008 and 2009 to improve and upgrade
existing electric transmission and distribution and natural gas
transportation, distribution and storage facilities in Montana in
the ordinary course of its business. Of the amounts invested, the
Company will not earn a return on $38.8 million. NorthWestern will
recover the associated depreciation expense in future rates; --
NorthWestern will provide customers 21 megawatts of unit contingent
power from Colstrip Unit 4 at $19/MWh below the Mid-C index price
for a period of 78 months. The transaction is contingent upon
necessary regulatory approvals; and -- NorthWestern will submit a
general electric and natural gas rate filing no later than July 31,
2009 based on a 2008 test year. The stipulation only relates to the
determination of overall revenue requirement. The allocated cost of
service and rate design component of the general rate case will be
determined in the second phase of the proceeding. The distribution
and transmission delivery rates addressed in this stipulation are
those that the company collects to pay for electric and natural gas
systems that deliver energy to customer homes and businesses. These
costs include depreciation, property taxes, employee wages and
benefits, equipment, material, construction, maintenance, etc.
Delivery rates account for approximately 42% of an average electric
and natural gas residential bill; the remaining 58% is paid to
energy suppliers for the electricity and natural gas itself.
NorthWestern's delivery rates have not changed since 2001 when the
utility was still owned by the Montana Power Company despite
increasing personnel and equipment costs. Energy supply costs and
Montana property taxes have also increased during the same period
and those changes continue to flow through directly to customers as
part of their monthly bill. The company also recently reached
general rate case settlement agreements in its South Dakota and
Nebraska natural gas utilities. Those settlements are currently
pending regulatory approval in both states. The revenue increase in
South Dakota will be $3.1 million annually, starting December 1,
2007, with a confidential settlement on the specific rate elements
such as capital structure and the authorized return on equity. The
revenue increase in Nebraska will be $1.5 million annually,
starting December 1, 2007, with a capital structure as filed and
the authorized return on equity of 10.4%. Management will make a
presentation at the Wall Street Access and Berenson & Co. West
Coast Utilities conference at 3:45 pacific time on December 13,
2007. The presentation will include discussion on the rate
settlements and will be webcast at a link provided on our website.
For more information on NorthWestern Energy's general rate filings
and about the value of the energy we deliver, please visit our
Website at http://www.northwesternenergy.com/. About NorthWestern
Energy NorthWestern Energy is one of the largest providers of
electricity and natural gas in the Upper Midwest and Northwest,
serving more than 640,000 customers in Montana, South Dakota and
Nebraska. More information on NorthWestern Energy is available on
the Company's Web site at http://www.northwesternenergy.com/.
DATASOURCE: NorthWestern Energy CONTACT: media, Claudia Rapkoch,
1-866-622-8081, , or investors, Dan Rausch, +1-605-978-2902, , both
of NorthWestern Energy Web site: http://www.northwesternenergy.com/
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