The Montana Public Service Commission voted 3-2 to postpone a final decision on NorthWestern Energy’s planned merger with Black Hills Energy until Nov. 10.
Jennifer Fielder, Jeff Welborn and Randy Pinocci supported the delay. Annie Bukacek and Kirk Bushman voted against it.
Proposed Colstrip Condition
Fielder proposed adding a condition related to NorthWestern’s share of the Colstrip power plant. The condition would require NorthWestern to make 370 megawatts of Colstrip production available to Montana retail customers if the power is needed and represents the least-cost option.
Fielder said the proposal was intended to provide “full transparency.” NorthWestern said its Colstrip share had been placed in a federally regulated subsidiary to protect Montana customers from power costs.
Support and Opposition
Commission staff recommended approval of the merger. The Montana Consumer Counsel also supported the transaction under a settlement with the companies. That agreement includes protections known as ring-fencing for NorthWestern’s assets and a one-time, $10 million bill credit for ratepayers.
About 25 people spoke during public comment Tuesday, and all opposed the merger. Pamela Snyder-Varns said the companies had cited several reasons for combining, including that the transaction would make the two utility holding companies larger.
NorthWestern serves more than 400,000 electric customers and 250,000 natural gas customers across Montana. Black Hills Energy serves 1.35 million customers through utilities in eight states.
Approval Status
Regulators in Nebraska and South Dakota, along with federal regulators, have approved the merger. The Montana PSC is the last major approval the transaction requires.
Bushman was temporarily appointed to the commission by Gov. Greg Gianforte in August. His temporary service is scheduled to end next July. Brad Molnar was suspended for one year after Gianforte removed him following an investigation into workplace conduct.
The Montana Supreme Court denied Molnar’s request to block a final PSC vote on the merger. The commission is scheduled to take up the transaction again Nov. 10.