(C) South Dakota Searchlight
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Agreement with regulators reduces NorthWestern electric rate increase from 16% to 11% [1]
['Joshua Haiar', 'More From Author', '- January']
Date: 2024-01
PIERRE — Electric rates for the average NorthWestern Energy residential customer in South Dakota will rise by $13.67 per month instead of $19.14 after state regulators approved a settlement with the company Tuesday.
The state’s three elected regulators on the Public Utilities Commission unanimously approved the settlement after a recommendation from their staff.
“We were able to resolve our differences,” staff attorney Amanda Reiss said.
The original proposal, filed on June 15, sought a $30.9 million annual increase in revenue, amounting to a 16% increase. The newly approved settlement, a product of analysis and negotiations by commission staff, has reduced the revenue increase to $21.52 million, which equates to 11.4%.
“You eliminated about one-third of the request,” Commissioner Chris Nelson told staff, complimenting their review. He also complimented the company for its efforts in ensuring a smooth rate case.
The company said it has faced increasing costs, including the addition of a 58-megawatt natural gas plant in Huron, which is part of $267 million in electricity investments since NorthWestern’s last rate review in December 2014. The company is also considering construction of a more than $1 billion nuclear plant in the state.
The decrease from NorthWestern’s initial request reflects various adjustments, including the removal of several expenses deemed inappropriate for customer charges.
Examples of expenses initially proposed for inclusion but later removed from the rate increase were costs associated with spouse travel and participation in the National Lineman’s Rodeo, and various advertising costs, including promotional contests, yard makeover prizes, and ads outside the South Dakota electric territory. Sponsorship of the Leadership South Dakota program and certain “economic development” expenses were also removed.
Additionally, the PUC staff identified and excluded expenses related to association dues, particularly those associated with lobbying and charitable donations, along with the board of directors’ deferred compensation plans.
The settlement prohibits NorthWestern from filing another application for an electric rate increase before 2027, barring extraordinary circumstances.
NorthWestern provides electricity or natural gas to 764,200 customers in South Dakota, Nebraska, Montana and Yellowstone National Park.
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https://southdakotasearchlight.com/briefs/agreement-with-regulators-reduces-northwestern-electric-rate-increase-from-16-to-11/
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