NorthWestern Energy Receives Regulatory Rate Approval on Battle Creek Natural Gas Production
BUTTE, Mont., Nov. 16, 2012 /PRNewswire/ -- The Montana Public Service Commission has approved the placement of NorthWestern Corporation d/b/a NorthWestern Energy's (NYSE: NWE) Battle Creek natural gas assets into rate base.
The commission approved, on a 4-1 vote, a stipulated agreement between NorthWestern Energy and the Montana Consumer Counsel that established a capital structure consistent with other recent rate cases including a return on equity of 10.00%. The stipulation also establishes a framework for evaluating future acquisitions, such as the recently announced Bear Paw field, that includes a unit cost/market-price crossover point to mitigate risk should market prices turn out different than the forecast prices used to evaluate the acquisition.
NorthWestern Energy purchased the proven Battle Creek production field and gathering system in 2010 for $12.4 million as part of an overall strategy to provide rate stability and customer value through the addition of regulated assets that are not subject to market forces. There is no immediate rate impact associated with this filing since revenue is already being collected in rates through the natural gas tracker.
About NorthWestern Energy
NorthWestern Energy provides electricity and natural gas in the Upper Midwest and Northwest, serving approximately 668,300 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the company's website at www.northwesternenergy.com.
SOURCE NorthWestern Corporation