The Public Service Commission approved a significant merger between NorthWestern Energy and Black Hills Corporation of South Dakota. Valued at $15.4 billion, this merger will establish a utility named Bright Horizon Energy, serving over 2 million customers in Montana, Wyoming, Colorado, South Dakota, Nebraska, and Arkansas. NorthWestern Energy will operate as a wholly owned subsidiary under this new entity.
The decision was made by a narrow 3-2 vote, with Commissioners Annie Bukacek, Kirk Bushman, and Jennifer Fielder in favor, while Randy Pinocci and PSC President Jeff Welborn opposed.
Fielder highlighted potential benefits of a larger utility, including access to loans with lower interest rates and the ability to reduce operating costs for customer savings. “To be able to take out a loan at a lower interest rate for multimillion-dollar projects makes a big difference,” Fielder stated.
Bushman assured that the merger would not result in immediate rate increases for current customers. “This application does not raise rates,” he confirmed. “It does not change the jurisdiction of the commission regarding how we regulate these utilities.”
The PSC must still release a final written order after Tuesday’s vote to finalize the decision. The merger itself does not include a rate hike, but future rate adjustments could arise through separate rate cases.
NorthWestern spokesperson Jo Dee Black noted that the merger aims to enhance customer service through expanded resources and a commitment to affordability. Meanwhile, concerns persist among Commissioners Pinocci and Welborn, who questioned the merger’s benefit to existing customers. Welborn remarked, “I don’t feel like it’s a bad deal. But I don’t see where there’s a clear benefit to advance the public’s interest here.”
Montana was the last state to approve the merger, following regulatory endorsements from South Dakota and Nebraska. Federal approvals have also been secured.
This merger is among several regulations under PSC review for NorthWestern Energy, including power generation plans and rate case reconsiderations. Legal challenges also press the PSC over utility regulation’s climate change considerations.
The vote followed two-and-a-half hours of public comments, with the majority opposing the merger due to potential risks for Montana ratepayers, such as increased demands from data centers.
Several commenters, including Brian Miller of Helena, voiced concerns about the merger’s focus on profits and data centers, saying, “This is not being driven by public service right now.”
Kristen Wing of Thompson Falls expressed anxiety over Montana’s energy future amid the push for data center growth, stating, “Montana ratepayers do not trust the dynamics of this merger.”
A poll by Montana Free Press-Eagleton indicated nearly three-quarters of Montana voters oppose local data center developments, and 92% favor state regulations to mitigate their impact on power prices.
Commissioners Fielder and Pinocci acknowledged that data center regulation is a concern more appropriately addressed by the state Legislature rather than the PSC.
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