NorthWestern Energy Submits Delivery Services General Rate Case Filing to the Montana Public Service Commission
19 10월 2009 - 7:00PM
PR Newswire (US)
BUTTE, Mont., Oct. 19 /PRNewswire-FirstCall/ -- NorthWestern Energy
(NYSE: NWE) today submitted its general rate filing to the Montana
Public Service Commission seeking approval to change several
components of its delivery services charges for Montana electricity
and natural gas customers. This filing was required pursuant to a
stipulation approved by the Montana PSC in 2008. If approved, the
proposed changes would result in an increase of $0.08, or less than
one-tenth of one percent, for a typical natural gas customer using
10 dekatherms/per month. A typical residential electric customer's
total monthly bill would increase by $2.41 or about 3.35%. The
company has asked for an interim rate adjustment pending the full
review by the Commission. "This filing addresses the foundational
aspects associated with the day-to-day operations and maintenance
of our electric and natural gas infrastructure," said Bob Rowe,
President and CEO. "Despite the economic downturn and other
challenges, this is an exciting time to work at NorthWestern. We're
making the appropriate investments in our system to provide safe
and reliable service. We're engaging our stakeholders at all levels
to prepare our system to meet the expectations our customers have
for utility service now and in the future." The proposed changes
include new cost allocation between rate classes and rate designs.
The proposals introduce an inclining block residential rate
structure that would assign more costs to residential customers
that use more energy within each rate class. Under this
methodology, some customers would see higher increases than the
typical residential customer while other residential customers may
experience lower rates than average. The intent of the inclining
structure is to provide additional incentive to larger volume
residential users to reduce their consumption through adoption of
energy efficiency measures. The amount of the proposed rate
increases, based on a requested authorized return on equity of
10.9% and a weighted cost of capital of 8.3%, has been reduced as a
result of a reduction to income tax expense due to recent changes
made to the tax accounting method related to capital expenditures
and repair expenses. As a result of this change, NorthWestern's
proposed revenue requirement for its natural gas utility was
reduced from approximately $4.8 million to $1.96 million and for
its electric utility from $24.1 million to $15.5 million. The
general rate filing does not address energy supply issues, which
are addressed in other proceedings. The transmission and
distribution components of a typical total bill represent less than
50% for residential electric and natural gas customers with energy
supply costs making up the balance of the bill amounts. About
NorthWestern Energy NorthWestern Energy provides electricity and
natural gas in the Upper Midwest and Northwest, serving
approximately 656,000 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, Rick Burt,
1-866-622-8081, ; or Investor Relations, Dan Rausch,
+1-605-978-2902, , both of NorthWestern Energy Web Site:
http://www.northwesternenergy.com/
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