Mpsc

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.

In order to reflect estimated changes in the cost of natural gas for the remaining summer season, the Missouri Public Service Commission (MPSC) said Monday that natural gas rates will increase for Laclede Gas Co. customers under a scheduled filing taking effect on June 14 (Tuesday). The commission reported that the rate change is interim subject to refund. Under the hike, a residential customer currently paying approximately $0.77 per therm for natural gas will see an increase to approximately $0.78 per therm. This increase in rates will result in the average residential customer paying approximately 1% more for natural gas in June through October versus what they would pay if current rates did not change. Under tariffs on file with the commission, Laclede Gas is scheduled to make four filings each year (January, March, June and November) to reflect the wholesale supplier cost of natural gas. The next scheduled filing is November 2005.Laclede Gas Company serves approximately 631,000 natural gas customers in the City of St. Louis as well as the Missouri counties of St. Louis, St. Charles, Butler, Iron, Franklin, Jefferson, Madison, St. Francois and Ste. Genevieve.

Concluding that the action was both “reasonable and in thepublic interest,” the Michigan Public Service Commission last weekapproved a request by Michigan Gas Utilities for a special gastransportation contract with Rock-Tenn Paperboard Products, one ofthe largest accounts on MGU’s system.

The Michigan Public Service Commission (MPSC) quickly approved aproposal by MichCon to implement a three-year plan to offer its 1.2million residential and commercial gas customers the opportunity toselect alternative natural gas suppliers. The plan also cuts andfreezes gas costs for customers who stay with MichCon as their gasprovider.