NorthWestern Energy’s natural gas customers in Montana are bracing for a 27% increase to their monthly bills beginning in September, which not only reflects rising fuel costs but also the lack of a credit that had been deducted from statements over the past year.

A typical customer’s bill will jump about $25.41, to $120.01 from $94.60, according to Pat Corcoran, vice president for regulatory affairs. The hike is NorthWestern’s largest since it was granted a $16/month average increase between October and December 2002.

The new rates are double the $11/month increase requested by NorthWestern in early June, which would have accounted for the end of a credit applied to customers’ bills. However, the Montana Public Service Commission (PSC) never acted on that request.

Since its rate request to the PSC in June, Corcoran noted that the cost of natural gas has sharply risen. Corcoran said about 55% of the new rate increase is drawn from updated projections about the price of gas over the next 12 months.

NorthWestern serves 157,000 gas customers in Montana and overall, 617,000 utility customers in South Dakota, Montana and Nebraska.

Montana Public Power Inc., a coalition of five Montana cities — Bozeman, Great Falls, Helena, Missoula and Butte-Silver Bow — is currently working on a deal to buy the utility for $2 billion and turn it into a publicly owned utility serving gas and electric customers in the state (see Daily GPI, Aug. 5).

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