Opposing parties present closing arguments on proposed NorthWestern merger
The Montana Public Service Commission concluded hearings on a proposed merger between NorthWestern Energy and Black Hills Energy. Opponents, including environmental groups, warned the merger could open the door for more data centers, burdening ratepayers with electricity costs. The commission will decide in coming months whether the merger is in the public interest.
The Montana Public Service Commission (PSC) concluded its hearing on the proposed merger between NorthWestern Energy and South Dakota-based Black Hills Energy. The five-person body heard closing arguments after four days of testimony. If approved, the merged entity, to be called Bright Horizon Energy Company, would be 44% owned by NorthWestern shareholders and 56% by Black Hills shareholders.
Attorney Wiley Barker, representing Black Hills, assured the commission that the merger would not lead to rate increases and that the PSC would retain regulatory power over future rates. He cited settlements reached with various Montana interests, including the Montana Consumer Council, the City and County of Missoula, labor unions, and the Large Customer Group, indicating broad support.
However, attorney Monica Tranel, representing environmental group 350 Montana and the Montana Farmers Union, strongly opposed the merger. Tranel argued that the utilities' own statements indicated the merger would bring greater opportunities for data centers in Montana, potentially subsidizing electricity and infrastructure costs for these large users through ratepayer funds. She referenced Microsoft's data center in Cheyenne, Wyoming, currently powered by Black Hills. Tranel urged the PSC to reject the merger to protect Montana's residents from unchecked industrial growth and potential rate hikes.
NorthWestern attorney Mike Green countered, stating that the merger was a straightforward proposal focused on stability and growth, not a comprehensive regulatory overhaul. He acknowledged the decision's weight and the future challenge of meeting increasing energy demands, suggesting the new company would be better equipped. The PSC will determine in the coming months if the merger serves the public interest and benefits customers. Separately, Quantica Infrastructure affirmed its plan for a 5,100-acre data center campus north of Billings, stating it would manage its own power.