BILLINGS — The Montana Public Service Commission rejected Montana-Dakota Utilities Co.'s request for an $8 million interim natural gas rate hike this week, with the agency's citing the large ask at a time when cost of living is rising.
The utility had argued that it needed to raise rates to offset its infrastructure investments from earlier this decade, and despite the setback, the utility is not done asking for rate increases. In February, the PSC will rule on a permanent $9.4 million rate increase request that would increase the costs of residential bills by about $9 per customer.
According to the company's spokesman, Mark Hanson, the request for a rate increase was an attempt to cover past investments.
"Montana-Dakota has invested about $43 million in infrastructure since its last rate review, which was filed in 2020 and approved in 2021," said Hanson in a emailed statement to MTN. "Our current prices are not enough to cover the investments made since 2020 and provide a reasonable rate of return."
That proposed increase was not appreciated by many Eastern Montana residents, including Mary Catherine Dunphy, who is a member of the Northern Plains Resource Council, a Billings-based resource conservation group.
"Montanans are tired of costs going up and picking up the bills for these corporations," Dunphy, a Miles City resident, said during an online webcam interview Wednesday. "Wages have not kept up with inflation, and this would've added to that."
The PSC regulates Montana utilities and other services. This summer, Montana's largest utility, NorthWestern Energy, sought a 28 percent rate increase, which the commission postponed and asked for more information to justify the ask.
In the case of MDU, one of Eastern Montana's largest natural gas providers, Dunphy and other members of the council organized opposition to the rate increase among eastern Montana rate payers.
"We got hundreds of, if not thousands, of. people in Eastern Montana involved, sending postcards and making comments," Dunphy said.
That public outcry caught the attention of the PSC commissioners, who rejected the increase by a 4-1 vote. Commissioners Randy Pinocci, Tony O’Donnell, Jennifer Fielder, and James Brown voted against the requested interim rate increase. Commissioner Annie Bucacek was the lone vote supporting the increase.
“I'm really happy that the PSC stuck up to the people of Eastern Montana instead of the corporation. In the past, they tend to get Northwest Energy and MDU tend to get everything they ask for,” Dunphy said.
David Sanders, executive director of the PSC, said the five-member elected commission was trying to balance the utility's cost of doing business with consumers' ability to pay.
Sanders said the commissioners found the increase was asking too much of Montanans who are struggling to make ends meet.
"Everything from the price of housing to healthcare to food and fuel has been going up," Sanders said. "I think the most prominent reason was the extra spending Montanans have had to endure the past four years."
Both MDU and NorthWestern Energy are still waiting on permanent rate decisions. These decisions will be made by what will likely be a different set of Public Service Commissioners. O'Donnell is termed out, Brown is leaving his seat to run for state auditor and Fielder is seeking re-election on Nov. 5.
Dunphy said that she and many others are ready to battle the rate increase again in February.
