Why It Matters
Montana’s Public Service Commission approved a merger that would create Bright Horizon Energy, a utility serving more than 2 million customers across six states. The transaction does not include a rate increase, although a future increase could be pursued through a separate rate case.
What Happened
The PSC voted 3-2 on Tuesday to approve the merger between NorthWestern Energy and South Dakota-based Black Hills Corporation. Annie Bukacek, Kirk Bushman and Jennifer Fielder voted in favor; Randy Pinocci and Jeff Welborn voted against.
Once finalized, NorthWestern Energy will operate as a wholly owned subsidiary of Bright Horizon Energy. The new company will provide electric and natural gas services in Montana, Wyoming, Colorado, South Dakota, Nebraska and Arkansas.
The approval still requires a final written order from the commission. Montana was the last state to vote on the transaction. Regulatory agencies in South Dakota and Nebraska also approved it, and the companies received all required federal regulatory approvals.
Public comment lasted two-and-a-half hours and included 35 people. Most commenters opposed the merger. Commissioners also said regulation of data centers belongs to the Montana Legislature rather than the PSC.
Bushman said the merger application would not immediately affect customer rates. “This application does not raise rates,” Bushman said.
By the Numbers
$15.4 billion — value of the merger
over 2 million — customers Bright Horizon Energy will serve
3-2 — PSC vote approving the merger
two-and-a-half hours — duration of public comment
35 people — public commenters
Zoom Out
The merger has received approval from state regulators in Montana, South Dakota and Nebraska, in addition to all federal regulatory approvals. The PSC’s decision completes Montana’s vote among the states identified in the transaction.
Data-center regulation also emerged during the public discussion. The source material states that nearly three-quarters of registered Montana voters oppose data centers in their city or neighboring county, while 92% say state government should regulate data centers’ effect on power prices.
What’s Next
The PSC must issue its final written order before the merger can be finalized. Bright Horizon Energy’s future rates could be addressed through a separate rate case, while data-center regulation remains with the Montana Legislature.