NorthWestern submits final compliance adjustments in PPL Montana deal

NorthWestern Energy submitted the final mandated compliance to the Montana Public Service Commission as part of the 2014 acquisition of hydroelectric facilities from PPL Montana, NorthWestern said on Thursday.

The compliance involves adjustment of hydro-related electricity supply rates to remove operating expenses tied to the Kerr Dam facility, updating to the most recent property-tax rates and adjusting for anticipated revenue credits in 2016.

"Our customers received a $2.7 million net benefit from our short period of ownership of the Kerr facility," Bob Rowe, President and CEO of NorthWestern, said. "The value of the energy produced by Kerr during the 10 months that we held it exceeded the facility's revenue requirement, thereby meeting one of the sale conditions that the ownership result in a zero or net-positive financial impact for customers."

The Montana Public Service Commission approved the rates last year, which saw a fixed requirement for revenue of $160 million, which includes $43 million in credits for revenue to be applied to the hydro facilities. Revenue credits come from excess energy from Kerr Dam, primarily what was not used for their customers.

The adjustments amount to a $31.6 million increase in revenues.