MPSC Approves NEW’s Interim Rates

Analysts at Ladenburg Thalmann reiterate their "neutral" rating on Nothwestern Corp

, while reducing their estimates for the company. The target price for NWE is set to $29. According to Ladenburg Thalmann, “On July 8 2010, the MPSC voted in favor (3-2) of NWE electric/gas interim rate filing. This follows a previous rejection (3-2) of NWE interim rate request but because no affirmative vote was taken it had to be reviewed before the Commission again. Electric/gas interim rates total $12.4m/$1.8m (subject to refund) effective July 8, 2010.” “We also assume NWE defers the revenue collected from implementation of interim rates considering it would be subject to refund pending a final rate order from the MPSC….MSTI transmission project (partner possible, 2015 COD estimated but development contingent on federal RPS standard and we suspect that 2015 likely aggressive). Other investments may include gas storage to support price stability (uncertain timing/amount), an RFI for an estimated 25/50 MW of SD/MT wind capacity (PPA vs self-build), $50m Big Stone pollution control equipment (2015), distribution upgrades,” the analysts mention. Ladenburg Thalmann has lowered its EPS estimate for FY10 from $2.08 to $2.02.