South Dakota utility regulators have unanimously approved the merger of Black Hills Energy and NorthWestern Energy, forming a new company named Bright Horizon Energy. This significant merger, valued at approximately $15.4 billion, will serve 2.1 million customers across eight states. The approval came during a meeting held in Pierre, with the Public Utilities Commission Chairman, Chris Nelson, stating that state law favors merger approvals unless significant adverse impacts on customers are likely. The new entity promises to diversify energy sources to meet increasing demands.
Two settlements were also approved alongside the merger. One settlement ensures that South Dakota customers are not charged for executive “golden parachutes” and other related costs. It also stipulates a delay in rate increases and mandates the retention of the headquarters in Rapid City for a minimum of 10 years, as well as maintaining a corporate office near Sioux Falls for at least five years. The other settlement offers increased opportunities for union and local contractors.
During the meeting, Democratic nominee Frank Kloucek expressed concerns, labeling the merger a “super monopoly” and criticizing the lack of public input. The merger, initially announced in August, aims to enhance the company’s energy source diversity and meet the rising energy demands from data centers. NorthWestern Energy currently serves around 65,600 electric and 51,200 natural-gas customers in South Dakota, while Black Hills Energy serves 78,976 electric customers.
Regulatory approval is still pending in Montana, the last of the affected states to decide on the merger.
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