Montana Public Service Commission Issues Guidance to Staff Related to Lost Revenue Adjustment Mechanism

SIOUX FALLS, S.D., Sept. 9, 2015 /PRNewswire/ -- NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) announced that on September 8, 2015 the Montana Public Service Commission (MPSC) voted 5-0 to provide guidance to the MPSC staff to draft an order to eliminate our Lost Revenue Adjustment Mechanism (LRAM).  We expect the MPSC to approve a final order within the next month and anticipate the elimination of LRAM to be effective beginning with the Company's first monthly tracker filing after the MPSC approves a final order.  We are maintaining our 2015 earnings per share guidance of $3.10 – $3.30 per diluted share, subject to review of the final order.

NWE's demand-side management (DSM) programs lower our sales to customers. Base rates, including impacts of past DSM activities, are reset in general rate filings. Between rate filings, the implementation of energy saving measures result in increased lost revenues related to DSM activities. In 2005, the MPSC authorized the LRAM which has allowed us to collect the revenue that we lost due to DSM activities.

As previously disclosed, we have been recognizing LRAM revenues currently being collected from customers of approximately $7.1 million annually and deferring the remaining portion, pending an order from the MPSC. In light of the MPSC's action yesterday, we anticipate that the final order will prohibit us from recognizing any of this revenue prospectively.  Once the MPSC issues its final order, we will analyze it in detail and determine next steps as necessary.

For more news about NorthWestern Energy visit us at www.northwesternenergy.com and follow us on Facebook and on Twitter (NorthWestern_MT). 

About NorthWestern Energy (NYSE: NWE)
NorthWestern Energy provides electricity and natural gas in the Upper Midwest and Northwest, serving approximately 692,600 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the company's website at www.northwesternenergy.com.

SOURCE NorthWestern Corporation

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http://www.northwesternenergy.com

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