NorthWestern Energy submits annual gas tracker to PSC for approval

NorthWestern Energy announced submitted its annual natural gas supply cost tracker on Wednesday to the Montana Public Service Commission for approval, which will result in an estimated average monthly increase of $6.82 for consumers.

The annual filing will make significant changes to NorthWestern Energy’s rate schedule by returning to a “true” calculation. The utility’s previous schedule included refunds for customers and projected market supply costs, while this year’s rate will include a more standard calculation based upon total usage, transportation, delivery costs and energy cost in the market.

The natural gas supply will increase from the June rate of $0.18 per therm to $0.24 per therm on July 1, lasting through June 30, 2017, which is low compared to previous years. Rates peaked at $0.34 and $0.49 per therm in July 2015 and 2014, respectively.

NorthWestern customer usage peaks in the winter months and remains low through the summer months. In a household with an annualized monthly usage average of 100 therms, the utility expects that the new rate schedule will result in a monthly increase of $6.82. The exact impact of the schedule will be depending upon the usage of individual customers.

Market costs also impacts natural gas utility rates – supply and demand of energy resources impacts supply prices for utilities, which impact costs for consumers.

NorthWestern Energy also reminded customers that natural gas prices have declined overall in recent years.