Montana utility regulators face pressure over water shortages and delayed rate case

Public pressure reaches utility regulators

At the August 11 meeting, State Senator Mary Ann Dunwell and Anne Hedges pressed Montana utility regulators over North Star water problems and NorthWestern Energy’s delayed rate case.

Neither issue appeared on the action agenda, but speakers urged the Montana Public Service Commission to address reliability, possible bill changes, and unresolved regulatory delays affecting local customers.

Commission decisions shape utility service

The Montana Public Service Commission regulates monopoly utilities, including investor-owned electric, natural gas, water, wastewater, and legacy telecommunications providers serving households and businesses under applicable state regulatory law.

Its decisions affect monthly bills, service quality, and utility investment plans, making commission oversight central when customers raise concerns about rates, reliability, affordability, and pending formal regulatory proceedings.

North Star water concerns continue

North Star, a subdivision near Helena, has about 300 households, and residents have raised concerns about water supply and service reliability with state regulators since at least 2020.

The private utility has faced complaints involving restrictions and supply problems, despite earlier regulatory action requiring steps intended to improve system performance and address long-running service reliability concerns.

State senator seeks further action

State Senator Mary Ann Dunwell, a Helena Democrat, asked commissioners to consider additional solutions because North Star problems affect constituents living in the 300-household development near Montana’s capital.

Her comments connected utility performance with daily household needs and urged regulators to consider usage limits, continuing service concerns, and possible higher costs facing residents in the subdivision.

Proposed price change raises concern

State Senator Mary Ann Dunwell described a constituent’s concern about a reported proposal that would reduce allowed household water usage by 30% while prices would increase by 300%.

Doug Boutilier, the utility owner, could not be reached to verify the proposed increase, leaving regulators with an unconfirmed customer claim and continuing North Star water service concerns.

Settlement required repair funding

In December 2025, the commission approved a settlement with the North Star utility owner that required money to be reserved for repairs and improvements after years of complaints.

The agreement required a $15,000 account, and 2026 filings showed the utility owner deposited that amount as ordered, creating a dedicated funding source for future system repair work.

Fun fact: Electric bills in the USA rose 2% each month for residential customers versus 2022, while inflation was 4.1% in 2023.

July report leaves questions open

A July filing from the utility operator reported no deficient water delivery issues during the previous month, but the update did not end broader public concern about reliability.

Montana Public Service Commission spokesperson Michael Turner said he believed the staff member monitoring North Star had deep concerns about supply and developed a plan for regulatory review.

Little-known fact: Water bills in the USA cost the average American family more than $1,000 per year, making them a household expense.

Delayed energy case draws criticism

Montana Environmental Information Center Executive Director Anne Hedges questioned commissioners about NorthWestern Energy’s rate case, which began with a July 2024 request affecting electric and natural gas customers.

She argued the case had fallen 16 months behind the review deadline, leaving customers without a final resolution and raising questions about the commission’s handling of the process.

Rate case timeline remains unsettled

The Montana Public Service Commission held a hearing in 2025 and made a preliminary decision in November after NorthWestern Energy filed its rate request more than a year earlier.

The commission announced a final order in December 2025, but reconsideration requests from the environmental group and NorthWestern Energy kept related motions pending through August 2026 without resolution.

Customer bill effects remain unresolved

A July 2025 rate action reduced NorthWestern Energy’s self-implemented increase, but the final December order still approved higher rates for Montana customers compared with July 2024 billing levels.

In its July 2024 filing, NorthWestern Energy sought electric and natural gas increases based on a 2023 test year and new utility investments across its Montana service territory.

Motions extend review into late 2026

The environmental group filed a reconsideration motion in January 2026, and NorthWestern Energy also asked regulators to revisit parts of the rate case decision, leaving related matters unresolved.

The Montana Public Service Commission is expected to rule on pending motions during the fourth quarter of 2026, leaving the rate case unresolved following comments made during the August meeting.

Other proceedings add pressure

The rate case remained pending alongside NorthWestern Energy’s proposed merger with Black Hills Corporation, another major proceeding requiring action from the Montana Public Service Commission during this period.

Governor Greg Gianforte suspended Commissioner Brad Molnar for one year in July 2026 after investigations, adding another internal personnel matter while the commission handled a demanding regulatory docket.

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Ratepayers await clearer outcomes

Two separate concerns remained before commissioners, with North Star centered on service reliability and NorthWestern Energy focused on customer rates and reconsideration motions awaiting further formal commission action.

Ratepayers sought clearer answers because utility decisions affect households through bills, water limits, repair plans, and the pace of formal rulings across Montana communities served by monopoly providers.

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Do you think Montana can resolve its water and utility rate disputes, or will regulatory delays continue to affect customers? Share your thoughts.

This slideshow was made with AI assistance and human editing.

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