UPDATED: Montana Public Service Commission postpones vote on NorthWestern Energy merger

The Montana Public Service Commission postponed a decision on the pending merger of NorthWestern Energy and Black Hills Corp until Nov. 10.

Commissioner Jennifer Fielder, who proposed the postponement Tuesday, said staff analysts addressed many of her concerns about the $15.4 billion merger proposal.

However, Fielder requested more time to propose an additional condition to address a concern that two groups that have opposed the merger still had.

“I think that there might be some good work we could yet do on that,” Fielder said.

Commissioners Jeff Welborn and Randy Pinocci supported Fielder’s motion to postpone the final decision. Commissioners Annie Bukacek and Kirk Bushman opposed it.

PSC legal and regulatory staff recommended approval of the merger.

They cited support from the Montana Consumer Counsel and restrictions aimed at protecting NorthWestern’s Montana assets from financial activities of the parent company.

But nearly 30 members of the public urged the Public Service Commission to oppose the deal, pointing to the utilities’ plans to serve data centers and possible rising costs for residents as a result.

James Roach, of Missoula, said most energy comes from fossil fuels, and data centers will exacerbate the problem.

But Roach said he believes artificial intelligence is “a bubble.”

“When it bursts, are we going to be holding the bag as ratepayers?” Roach said.

A new condition

Most of the parties that participated in the case ended up in support of the merger — or agreed not to oppose it — after the utilities addressed their concerns. But 350 Montana and Montana Farmers Union continued to oppose it and suggested conditions the PSC should place on any merger.

Fielder said she wanted to propose one condition the groups had recommended: To reserve a portion of NorthWestern’s acquisition at the coal-fired plant in Colstrip for Montana customers if that power would be the most affordable.

In 2024, the Montana utility announced the acquisition of 370 megawatts from Puget Sound at the Colstrip Power Plant, effective January 2026, and the monopoly said the additional power would benefit existing customers.

But NorthWestern later said the new shares would be placed into a subsidiary outside control of the Public Service Commission.

At the meeting Tuesday, Fielder said the additional time would allow members of the public and the parties to review the condition she was drafting for how to handle that power.

She said it also would allow time to review any additional conditions commissioners wanted to propose.

Bukacek, who has voted to support NorthWestern, urged against the delay.

She said the merger proposal was made more than one year ago, and the PSC should vote this week as scheduled to avoid more staff time and travel costs.

“Enough’s enough,” Bukacek said.

Pinocci drills on data centers

Commissioner Randy Pinocci said he doesn’t want data centers to pay cheaper electricity than his constituents, who include many retired people on fixed incomes.

He said he’d  like to see data centers help offset costs for residential payers.

“I have Montanans struggling to pay their bills,” Pinocci said.

PSC staff attorney Pam Snyder-Varns said Pinocci’s concerns are valid, but the commission’s authority “is not without limit,” and data centers are part of a separate case.

Bushman, who recently stepped into the position after Commissioner Brad Molnar was suspended for professional misconduct, backed the merger as business as usual.

All five commissioners are Republican.

Bushman said the role of the Montana PSC does not change with the merger, and it “does not include any rate increases.”

Public opposes merger, fears cost increases

Some members of the public said they already are worried about affordable electricity.

Nathan Stephens, of Missoula, said his family is keeping their home at 65 degrees this winter instead of 68 to try to keep their power bill from rising.

“Montana families shouldn’t be turning down the heat so a data center can get cheaper power,” Stephens said.

Many members of the public said the order approving the merger would short Montana customers.

Kori McGillen, of Billings, said one problem with the order is that NorthWestern doesn’t have to ask permission to transfer assets valued at more than $10 million.

“Now they simply have to notify the commission that the assets are gone,” McGillen said.

Several members of the public reminded the Public Service Commission of the decision to deregulate Montana Power Company in 1997.

Rates skyrocketed, and pensions disappeared.

Tony Hudson, of Stevensville, was among the commenters who said a decision to merge will be a similar stain in the history books.

“If this goes forward, I believe it will be one of the darkest days in the history of Montana,” Hudson said.

Montana last to vote

NorthWestern Energy and South Dakota-based Black Hills announced plans to merge in August 2025 pending approval from regulators.

Regulators in Montana will be the last to vote on the deal.

In a report on the staff recommendation, Snyder-Varns said the deal includes “ring fencing” measures, or provisions that protect NorthWestern’s assets. For example, she said it prohibits the utility’s assets from being used to secure the debt of its affiliates and prevents “commingling funds” with an affiliate.

“It will enable these two relatively small utility holding companies to be bigger in an industry where size matters,” Snyder-Varns said.

Based on state statute, the final day for the PSC to act is Nov. 12.

If approved, the new company, to be called Bright Horizon Energy, would operate in Montana, South Dakota, Arkansas, Colorado, Iowa, Kansas, Nebraska and Wyoming.