Montana’s Public Service Commission (MPSC) has unanimously approved a stipulation and settlement agreement over the pending investigation by the state Consumer Counsel of NorthWestern Energy’s utility operations in the state. The regulators’ action resolves outstanding issues between the South Dakota-based utility holding company and the Montana over the NorthWestern’s proposed Chapter 11 bankruptcy reorganization plan.

The newly endorsed settlement will be submitted to the federal bankruptcy court in Delaware on Thursday.

MPSC Chairman Bob Rowea, usually a strong critic of NorthWestern, lauded the settlement in the local news media.

In other recent actions NorthWestern, which purchased the distribution electricity and natural gas utility operators of Montana Power two years ago, said it is advancing what it called a “constructive dialogue” with the state regulatory commission. Last Thursday’s a third-party audit was submitted of the company’s operations in the state, recommending improvements in some areas (see Daily GPI, July 12). The audit found “no major concerns” with the natural gas distribution and transmission system, but had some specific recommendations for improvements on the electric side.

Voluntarily agreeing to the third-party review by Quentin, PA-based The Liberty Consulting Group, NorthWestern said the report provides “a thorough and objective review” of its utility operations, which have come in for criticism from the Montana Public Service Commission over the past 18 months, during which NorthWestern filed for Chapter 11 bankruptcy in a Delaware federal court.

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