Montana PSC Finds NorthWestern Not in Compliance with Bankruptcy Requirements; Going to District Court to Recover Fines

The Public Service Commission (PSC) voted 5-0 yesterday to find NorthWestern Corporation (NWE) in violation of the "limited investment basket cap" provisions of its 2004 Bankruptcy Stipulation. In a rare move, the PSC also voted to seek the recovery of more than $750,000 in related fines from the company in District Court.

Concluding an investigation which began in April, the PSC determined the company violated the Stipulation and related requirements when obtaining the financing for the purchase of Colstrip Unit 4. The specific violations are borrowing money for improper purposes, investing more than it is allowed to invest in non-utility activities, and improperly supporting borrowing by a subsidiary. If the District Court agrees with the PSC findings, NWE could be fined $765,000 for violations over the course of 22 months. More information regarding the decision can be found on the PSC website, psc.mt.gov, under docket D2008.4.36.

Made up of 5 elected commissioners, the PSC works to ensure that Montanans receive safe and reliable service from regulated public utilities while paying reasonable rates. Utilities regulated by the PSC generally include private investor owned natural gas, electric, telephone, water, and sewer companies. In addition, the PSC regulates certain motor carriers, and oversees natural gas pipeline safety and intrastate railroad safety.

— ### —

For more information, contact PSC Public Information Specialist Sarah Carlson at 406.444.6171, [email protected]