Montana Public Service Commission staff gives approval to NorthWestern Energy merger
Montana Public Service Commission staff recommended approval of NorthWestern Energy’s merger with Black Hills Corporation, saying the transaction would not harm consumers. Opponents raised concerns that the combined utility would pursue more data center customers and could shift related infrastructure costs to ratepayers; Montana commissioners were scheduled to make the final decision.
Montana Public Service Commission staff recommended approving NorthWestern Energy’s merger with South Dakota-based Black Hills Corporation, concluding that the transaction would not make service inadequate or raise customer rates. The merger, which would create a company called Bright Horizon Energy, was placed on the commission’s agenda for a final decision, with commissioners required to act by Nov. 12.
Montana Farmers Union and 350Montana opposed the merger in part because the combined utility could more aggressively pursue data center development, potentially exposing ratepayers to associated costs. NorthWestern CEO Brian Bird said the merger would give the company greater resources to compete for data center customers, while PSC staff said the commission would retain authority over major customer contracts and related infrastructure. The companies already have agreements planned with Quantica Infrastructure and Atlas Power Group in Montana, and NorthWestern has said it is in advanced discussions with eight data center customers.