NorthWestern Energy ‘not as in touch with Montanans' as rate case unfolds

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The Montana Public Service Commission is hearing NorthWestern Energy's rate case this week and next. (Photo by fhm | Getty Images)
Even before the Public Service Commission approved a settlement that meant a 28% rate increase for NorthWestern Energy customers, Chris Blazer's friend struggled.
Blazer, of Helena, said her friend lives on just $2,000 a month.
'Even five years ago, before the big rate increases, she was living in darkness and cold so that she could feed herself and her horses,' Blazer said.
Blazer made her comments Wednesday to the Public Service Commission during a hearing on the monopoly utility's rate case. She said some people do not realize the impact so-called 'minor increases' have on customers' lives.
In August 2022, NorthWestern Energy's electric customers paid $91.27 a month, according to its own records.
On July 1, likely before the PSC issues an order in the current case, those same customers could be paying $127.24, a 39.4% increase in three years.
NorthWestern Energy said rates could drop compared to the current rate if the PSC approves a settlement in the case — the PSC put June rates at $118.20 for the average electric customer.
But a couple of other adjustments are pending in the meantime, and a group of organizations intervening in the case are asking commissioners to take a closer look at costs.
At the hearing this week, a lawyer representing the group also quizzed a NorthWestern Energy vice president about the utility's response to an earlier order requiring the utility to assess its programs to help people with lower incomes.
In a discussion about rate increases nationally, PSC President Brad Molnar said NorthWestern customers pay the 12th lowest electric rates in the U.S.
'So we're actually living pretty well,' Molnar said.
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On the witness stand earlier in the week, NorthWestern Energy CEO Brian Bird agreed with Commissioner Annie Bukacek's perspective that the utility's rates are reasonable in comparison to other expenses people pay.
Bird said coffee can be $5 and a Big Mac meal can be $9.99. By comparison, he said, NorthWestern Energy powers all appliances in a person's home and supplies all of its natural gas for $6 a day.
'I think people don't really appreciate that when we can do that as affordably as we have,' Bird said.
Customer Jocelyn Leroux, however, said NorthWestern Energy executives don't appreciate the financial pressures Montanans face — for some, an extra $20 on a bill is money that used to pay for groceries.
'Imagine having to choose between sweating through the night to save on electricity, or turning on the air conditioning, and going light on food for the week,' said Leroux, with the Montana chapter of the Sierra Club. 'These are the kinds of calculations that many people are forced to make.'
She said the reason customers are forced into these choices is NorthWestern executives 'seem to be prioritizing their own financial status' over more affordable and cleaner energy sources — despite all the wind and solar potential in Montana.
A NorthWestern Energy shareholder report on the utility's website outlined compensation for executive officers in 2024, including salary, stocks, deferred compensation and other pay:
Brian Bird, CEO: $4.81 million
Crystal Lail, CFO: $1.74 million
Shannon Heim, general counsel: $1.00 million
Bobbi Schroeppel, VP customer care, communications, HR: $892,457
John Hines, VP, supply/MT government affairs: $929,887
In an introduction to the report, Bird encouraged shareholders to review the information in preparation for an April 30th meeting. The executive pay section describes its aim.
'Our executive pay program is designed to align the long-term interests of our executives, shareholders, and customers,' the report said.
But some Montanans still need help paying the bills.
Tuesday, lawyer Jenny Harbine asked if NorthWestern Vice President Schroeppel had reviewed data that showed 20% to 50% of Montana households with incomes of less than $75,000 said they needed to reduce or forego spending on basic necessities to pay their utility bills.
Harbine represents a group of organizations that are asking the PSC to reject a settlement in the case.
They argue NorthWestern is falling short when it comes to responsibly planning for the future, taking climate change into account and ensuring reasonable bills, especially for customers with lower incomes.
When it comes to household budgets, though, Schroeppel said the reverse is true at times, and some households forgo paying their electric bills to afford other items.
Harbine also wanted to confirm some of those families might not be buying daily lattes and burgers.
'Can we agree that Mr. Bird's testimony about the cost of a daily soda or Big Mac or coffee may overlook the experience of these families?' Harbine asked.
'I can't speak to that,' said Schroeppel, vice president of customer care, communications and human resources.
Harbine asked if Schroeppel was aware the Low Income Home Energy Assistance Program reached only 15% of the eligible population in Montana in 2024.
Schroeppel said she's seen numbers as high as 20% across the state. However, she said the figure includes customers served by other utilities.
In response to Harbine, however, she conceded the majority of that population is made up of NorthWestern customers, although she also said LIHEAP is a program run through the state health department, not the utility.
In an order in January 2024, the Public Service Commission directed NorthWestern Energy to evaluate the efficacy of low-income energy assistance programs.
The PSC ordered the utility to, 'at a minimum,' address information gaps about trends in affordability for low-income customers, barriers to programs, and the most effective outreach.
Harbine wanted to know if NorthWestern had made any changes since the order.
The group Harbine represents is comprised of the Montana Environmental Information Center, the Human Resource Council District XI, the Natural Resources Defense Council, and the NW Energy Coalition.
Schroeppel said the utility had not made changes, 'but I don't read the commission order to indicate that that's what they were looking for.'
Rather, she said, the directive was to pull a stakeholder group together to understand why customers don't participate in programs and determine the best way to reduce barriers and communicate.
To that end, she said NorthWestern is evaluating significant customer research that's 'hot off the press' and includes national data as well as information from its own customers.
After reviewing the research, Schroeppel said, the utility will talk to the stakeholder group, start 'strategizing around (the PSC's) objectives,' and likely hire a consultant to 'further facilitate the stakeholder group' and look at data to understand what needs to change.
Harbine wanted to know if the group had produced any recommendations based on the PSC order.
Schroeppel said the group is at that point right now, saying it has 'a whole host of recommendations,' including, for example, to allow 'categorical eligibility.' That would mean a customer could be automatically eligible for utility assistance if the person already qualifies for, say, Medicaid.
Harbine wanted to know if the group would make a proposal that addressed the PSC's order before its next rate case, but Schroeppel said she anticipated it would issue findings and an update instead.
'The proposal would come more along the lines if we were going to come in and ask to change something,' Schroeppel said.
'And you don't anticipate asking to change something?' Harbine said.
Schroeppel said NorthWestern does not anticipate changing anything yet because it needs to do more work around analytics and the cost of different ideas.
'I think some of the barriers can probably be just worked on between the various agencies and the stakeholder group,' Schroeppel said.
Harbine wanted to know if Schroeppel believed NorthWestern was committing enough resources to address affordability concerns, and Schroeppel said she does.
But Schroeppel said the consultant will help, and she anticipates that work will extend 'beyond the scope of what this initial commission order was' and look at 'future programs,' including ideas from other utilities.
The hearing is expected to continue through June 20.