HELENA — A NorthWestern Energy rate hike that reflects the utility’s increased property taxes has become permanent.
The Public Service Commission on Monday approved the $22 million rate increase, a 38-cent average increase on customers’ monthly bills.
That is in addition to an average $4 per month temporary rate increase approved by the PSC last week.
The company’s state taxes increased after it bought 11 hydroelectric dams from PPL Montana for $900 million.
State law allows NorthWestern to automatically pass tax increases to its customers.
However, the PSC will require NorthWestern to tell its customers what portion of their bills goes to pay the utility’s taxes.
The commission also wants NorthWestern to propose a way to recover its taxes based on each customer’s electricity usage, and not as a fixed rate.