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Public Service Commission OKs rate decreases

The Montana Public Service Commission has approved lower rates effective Jan. 1 for customers of NorthWestern Energy and Montana Dakota Utilities.

Approximately 307,000 residential electric customers of NorthWestern Energy will share a $14.4 million rate reduction, cutting the average customer’s monthly bill by 1.9% or $21.12 annually. NorthWestern Energy’s 177,000 natural gas customers will share a reduction of $2.3 million, resulting in a decrease in the average monthly bill for customers of 1.3% or $13.56 annually.

Approximately 19,800 residential electric customers of Montana Dakota Utilities will share a rate reduction of $630,000, cutting the average customer’s monthly bill by 1.0% or $10.31 annually. The utility’s 77,000 natural gas customers will share a reduction of $819,000, resulting in a decrease in the average monthly bill of 0.8% or $7.47 annually.

Montana law allows public utilities an automatic rate adjustment annually for taxes and fees. Changes in these taxes are passed through directly to consumers and appear separately on customer bills. This year, the adjustments will result in lower rates for customers of the state’s two largest utilities.

The Commission regulates private investor-owned natural gas, electric, telephone, water, and sewer companies, certain motor carriers, and oversees natural gas pipeline safety and intrastate railroad safety.

Flathead Electric retires 2008 capital credits

The Flathead Electric Cooperative Board of Trustees recently elected to retire a percentage of capital credits from 2008 member accounts. This month, more than $2.8 million will be paid to co-op members, both active and inactive.

This December’s retirement marked the first time that capital credit payments under $200 were credited to current members’ bills, rather than mailed as checks. This change saved co-op members a significant amount of money in printing and postage costs, reduced the number of uncashed checks, and relieved members of the extra step of cashing or depositing a physical check, according to a press release.

The co-op mailed checks to current members with credits over $200, and to inactive co-op members who belonged to the co-op in 2008 but are not current members.

When members sign up to receive electric service from Flathead Electric, each becomes a member-owner of the co-op, which is not-for-profit. One benefit of Co-op membership is the return of excess revenue to member-owners as “capital credits,” which are retired–or paid–as the Co-op’s financial condition permits.

Capital credits are not returned the year they are earned so that they can be used to fund electric lines, bucket trucks, and other needed equipment. This reduces the co-op’s need to borrow money, and in turn, helps keep rates low for members, the press release said. Amounts returned are determined by each member’s individual energy use during a particular capital credits year.

Flathead Electric would like to locate former members who have unclaimed capital credits from 2008 or previous years. Please search for your name or business using the co-op’s unclaimed capital credits lookup tool.

When capital credits go unclaimed for more than five years, Montana law allows them to go into a fund for education. For example, that fund provides the co-op scholarships awarded each year. Recently, it afforded the seed money for Phase II of the U.S. 2 Sidewalk Project in Evergreen, which will greatly improve student safety.

For general information about capital credits, visit flatheadelectric.com/capitalcredits.