FERC will not rubber stamp NorthWestern Energy’s proposal on Mill Creek

In an Order issued Friday, FERC has found that NorthWestern Energy’s proposal was not “just and reasonable” and will grant only temporary acceptance until a full hearing can be held. 

This is a big deal for Montana rate payers as FERC is committing to a rigorous analysis of NorthWestern Energy’s proposal.  It will be interesting to see if any of the Montana media picks up the story, how this alters NorthWestern Energy’s filings with the MT PSC on the same subject, and to what degree it may impact expectations about company revenues.  NorthWestern Energy has invested around $150 million into the plant, and any change by FERC or the MT PSC, on how NorthWestern Energy will recover costs could drastically alter their financial projects and bottom line.  

The Order highlights a number of very substantive issues as to how Mill Creek will be operated that quickly dive off into energy wonk land.  Suffice it to say, they are not taking anything NorthWestern Energy has proposed on face value.