NorthWestern Energy said the Montana Public Service Commission (MPSC) approved a stipulated agreement with the Montana Consumer Counsel (MCC) to settle the utility’s pending electricity and natural gas rate cases. The agreement resulted in a rate increase of about 2%, which has been in effect on an interim basis since Jan. 1. Last December NorthWestern announced the proposed settlement with the MCC, which included a $10 million annual increase in electric delivery rates, and an increase in natural gas delivery rates of $5 million annually. As part of the agreement, NorthWestern will provide 21 MW of unit-contingent power from Colstrip Unit 4 at $19/MWh below the Mid-C index price for a period of 78 months. NorthWestern will also make capital investments in 2008 and 2009 to improve and upgrade the existing electric transmission and distribution system. The company said it will recover this investment in rates over time but will not earn a rate of return on $38.8 million of the total investment. Under the terms of the agreement, NorthWestern will file another rate case in 2009. NorthWestern provides electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska.

NiSource Inc. subsidiary Columbia Gas of Pennsylvania (CPA) has filed a unanimous settlement with an administrative law judge of the Pennsylvania Public Utility Commission (PUC) detailing an agreement reached with regulatory stakeholders on an adjustment to its natural gas distribution rates. The settlement involves a base rate case filed by CPA in January 2008, the company’s first rate case in 12 years. Subject to approval by the PUC, new rates under the settlement are expected to become effective Oct. 28. The settlement is expected to contribute approximately 6 cents of basic earnings per share in 2009, after taking into consideration expected expense levels and interest costs associated with CPA’s infrastructure improvement program.

Monroe Gas Storage Co. LLC (MGS), a joint venture of Foothills Energy Ventures LLC and High Sierra Energy LP, has closed its $130 million debt financing for the Monroe Gas Storage facility, located near Amory, MS. Fortis Capital Corp. was the sole lead arranger; ING Capital LLC acted as syndication agent, and U.S. Bank National Association was the documentation agent on the fully committed financing. Caterpillar Financial Services Corp., COBank ACB, Guaranty Bank and Trust Co. and RZB Finance LLC joined the deal as managing agents. On June 11 MGS also received its Federal Energy Regulatory Commission notice to proceed and began construction on the facility. “We fully anticipate being commercially operational beginning next April,” said Foothills CEO Brian Bierbach. The 3.3 Bcf facility will use a depleted gas reservoir to provide multi-cycle storage with a maximum injection capability of 445 MMcf/d and a maximum withdrawal capability of 465 MMcf/d (see Daily GPI, June 3). It will have interconnections to both Texas Eastern Transmission Co. in the M1 market zone, and Tennessee Gas Pipeline on the 500 Leg in Zone 1.

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