- Third Quarter 2025 Diluted GAAP EPS of $0.62, compared to $0.76 in 2024.
- Third Quarter 2025 Adjusted Diluted Non-GAAP EPS of $0.79, compared to $0.65 in 2024.
- Affirms 2025 earnings guidance range of $3.53 to $3.65 per diluted share.
- Affirms $531 million capital plan for 2025 and 4% to 6% long-term EPS and rate base growth rate.
- Announces $0.66 per share quarterly dividend – payable December 31, 2025.
BUTTE, Mont. & SIOUX FALLS, S.D.–(BUSINESS WIRE)–NorthWestern Energy Group, Inc. d/b/a NorthWestern Energy (Nasdaq: NWE) reported financial results for the Third Quarter of 2025. Net income for the period was $38.2 million, or $0.62 per diluted share, as compared with net income of $46.8 million, or $0.76 per diluted share, for the same period in 2024. This decrease was primarily due to higher operating expenses, including merger-related costs and depreciation, higher interest expense, and a prior year income tax benefit from a gas repairs safe harbor method change. These were offset in part by new rates and customer usage.
NorthWestern’s Third Quarter 2025 non-GAAP net income and earnings per share were $48.4 million and $0.79, respectively, compared to $39.7 million and $0.65 in 2024. See “Adjusted Non-GAAP Earnings” and “Non-GAAP Financial Measures” sections below for more information on these measures.
“We are pleased to deliver on another quarter of strong operational and financial results while advancing several key initiatives including closing the Energy West transaction, successfully integrating the natural gas distribution assets into our system and welcoming roughly 40 employees and 33,000 customers,” said President and CEO, Brian Bird. “We are excited about the announcement of the merger with Black Hills Corporation, creating a stronger regional utility better positioned to meet increasingly complex and rapidly growing energy demands. We have submitted merger filing applications in October with regulators in Montana, South Dakota, and Nebraska, and anticipate approvals that will enable us to close the transaction in the back half of 2026.”
Additional information regarding this release can be found in the earnings presentation at https://www.northwesternenergy.com/investors/earnings.
TRANSACTION UPDATE
Pending Merger with Black Hills Corporation
On August 18, 2025, we entered into a Merger Agreement with Black Hills Corporation and a wholly owned subsidiary of Black Hills. The Merger Agreement provides for an all-stock merger of equals between NorthWestern and Black Hills upon the terms and subject to the conditions set forth therein.
In October 2025, we filed applications with the Montana Public Service Commission (MPSC), Nebraska Public Service Commission, and South Dakota Public Utilities Commission for approval of the Merger. We anticipate filing an application with the Federal Energy Regulatory Commission (FERC) in the fourth quarter of 2025. We anticipate the transaction closing in the second half of 2026, subject to the satisfaction or waiver of certain closing conditions.
During the three months ended September 30, 2025, we have incurred $7.6 million of merger-related costs, which are included in our Administrative and general expenses.
FINANCIAL OUTLOOK
Affirming 2025 Guidance and Long-Term Growth Rates
We are affirming our 2025 non-GAAP earnings guidance of $3.53 – $3.65 per diluted share. This guidance is based upon, but not limited to, the following major assumptions:
- Final approval of all material aspects of NorthWestern’s settlement position in the currently pending Montana general rate review;
- Normal weather in our service territories;
- Excludes transaction costs related to the pending merger with Black Hills Corp.;
- An effective income tax rate of approximately 12%-15%; and
- Diluted average shares outstanding of approximately 61.5 million.
We are affirming our long-term (five-year) diluted earnings per share growth guidance of 4% to 6%, based on an updated 2024 adjusted diluted non-GAAP EPS baseline of $3.40.
Additionally, we are affirming our $2.7 billion capital investment plan for 2025-2029, which is expected to support rate base growth of 4% to 6% from an updated 2024 base year of approximately $5.4 billion.
We plan to fund this capital program through a combination of cash from operations and secured debt issuances. Any incremental investments in generation, transmission, or other strategic growth opportunities may require equity financing.
Dividend Declared
NorthWestern Energy Group’s Board of Directors has declared a quarterly common stock dividend of $0.66 per share payable on December 31, 2025, to shareholders of record as of December 15, 2025.
Looking ahead, we remain committed to maintaining a dividend payout ratio within our targeted range of 60-70% over the long term.
COMPANY UPDATES
Montana Rate Review
In July 2024, we filed a Montana electric and natural gas rate review with the MPSC. In March 2025, we filed a natural gas settlement with certain parties. In April 2025, we filed a partial electric settlement with certain other parties. Both settlements are subject to approval by the MPSC.
A hearing on the electric and natural gas rate review was held in June 2025, and final briefs were submitted in August 2025. Interim rates will remain in effect on a refundable basis, with interest, until the MPSC issues a final order. A final order is expected during the fourth quarter of 2025.
Montana Large Load Tariffs
The MPSC requested information on our plan to serve potential large load customers and related resource adequacy issues. We responded in March 2025, outlining our policy and legal positions, emphasizing the importance of economic development for Montana and our commitment to serving our existing customers. We expect to submit a filing with the MPSC during the fourth quarter of 2025 to address data center development discussed below, incorporating rate design that prevents cost shifting of infrastructure upgrades needed to serve large load customers to other retail customers.
Data Center Development
In July 2025, we entered into a nonbinding letter of intent with Quantica Infrastructure to evaluate the transmission infrastructure and generation resources needed to support their proposed need. We had previously disclosed in December 2024, two separate nonbinding letters of intent to provide electric supply services for data centers being developed in Montana. The combined energy service requirement associated with these letters of intent is currently expected to be 175 megawatts beginning in late 2027, or earlier, with growth of up to 1,100 megawatts or more by 2030. We have signed a development agreement with Sabey, and are working with each of these parties to execute electric service agreements.
Resources and regulatory mechanisms to be utilized for serving these requests are pending further evaluation and regulatory considerations.
Colstrip Acquisitions and Requests for Cost Recovery
As previously disclosed, we entered into definitive agreements with Avista and Puget to acquire their respective interests in Colstrip Units 3 and 4 for $0 and expect to complete these acquisitions on January 1, 2026. Accordingly, we will be responsible for associated operating costs beginning on January 1, 2026, which we will not collect through utility base rates, until requested in a future Montana rate review. Puget and Avista will remain responsible for their respective pre-closing share of environmental and pension liabilities attributed to events or conditions existing prior to the closing of the transaction and for any future decommissioning and demolition costs associated with the existing facilities that comprise their interests. At closing, we will reimburse Puget and Avista for the proportionate amount of the long-term capital enhancement work they each funded subsequent to executing the definitive agreements and up until the acquisition close date.
Avista Interests – The 222 megawatts of generation capacity from Colstrip Units 3 and 4 to be acquired from Avista (Avista Interests) was identified as a key element in our strategy to achieve resource adequacy for customers, as outlined in our 2023 Montana Integrated Resource Plan. Noting the costs associated with operating this resource are not currently reflected in utility customer rates, in August 2025, we filed a temporary Power Cost and Credit Adjustment Mechanism (PCCAM) tariff waiver request with the MPSC that would provide opportunity for near-term recovery to largely offset approximately $18.0 million in annual incremental operating and maintenance costs associated with the Avista Interests. This waiver requests that the MPSC allow us to keep 100 percent of the net revenue associated with certain designated power sales contracts up to the amount of the operating and maintenance expenses we incur associated with our Avista Interest. Under the PCCAM design, market sales, which include long-term power sales contracts, flow back to retail customers as a reduction to energy supply costs and would be subject to the 90/10 sharing mechanism. Furthermore, the waiver request indicates that any net revenues from the designated contracts exceeding the operating and maintenance expenses associated with our Avista Interest would continue to flow back to retail customers through the PCCAM as a reduction to energy supply costs. We expect a decision from the MPSC by the first quarter of 2026.
Puget Interests – The incremental interest in Colstrip Units 3 and 4 to be acquired from Puget (Puget Interests) increases our ownership share of the facility to 55 percent and provides an increase in voting share in determining strategic direction and investment decisions at the facility. While we expect our future opportunity to serve large load customers may be supported by this resource, we expect to sell excess capacity in the near term. We expect to sign a contract in the fourth quarter of 2025 to sell the dispatchable capacity and associated energy from the Puget Interest beginning January 1, 2026, through late 2027. Revenues from this agreement are expected to largely offset the estimated $30.0 million of annual incremental operating and maintenance costs associated with the Puget Interests. In addition, in October 2025, we submitted a request to the FERC for approval of cost-based rates for our subsidiary that will own the Puget Interests. We expect this rate approval to be effective by January 1, 2026.
Generation Capacity in South Dakota
The Southwest Power Pool (SPP) has recently updated its resource accreditation and Planning Reserve Margin (PRM) requirements in response to growing reliability concerns. As a result, SPP is requiring additional accredited capacity by 2030 to meet the updated PRM targets. In October 2025, we submitted a project with the Southwest Power Pool (SPP) under their Expedited Resource Adequacy Study program for the construction of a 131 MW natural gas generating facility located in Aberdeen, South Dakota, to meet regional capacity needs by 2030. Anticipated costs for this project are approximately $300 million. This project represents incremental capital expenditures not currently reflected in our five year estimated capital expenditure forecast included within Management’s Discussion and Analysis in the NorthWestern Energy Group Annual Report on Form 10-K for the year ended December 31, 2024. We expect to update our capital expenditures forecast in the first half of 2026 upon the completion of the transmission interconnection study regarding the necessary transmission upgrades needed for this additional generation capacity.
Acquisition of Energy West Montana Operations
In July 2024, NW Corp entered into an Asset Purchase Agreement with Hope Utilities to acquire its Energy West natural gas distribution and system operations serving approximately 33,000 customers located in Great Falls, Cut Bank, and West Yellowstone, Montana. In May 2025, the MPSC approved this acquisition and on July 1, 2025, NW Corp completed this acquisition for approximately $35.9 million in cash, which is subject to certain post-close working capital adjustments that we expect to finalize in the fourth quarter of 2025.
|
CONSOLIDATED STATEMENT OF INCOME |
|||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
($ in millions, except per share amounts) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
Revenues |
|
|
|
|
|
|
|
||||||||
|
Electric |
$ |
339.8 |
|
|
$ |
306.5 |
|
|
$ |
954.7 |
|
|
$ |
909.8 |
|
|
Gas |
|
47.2 |
|
|
|
38.7 |
|
|
|
241.6 |
|
|
|
230.6 |
|
|
Total Revenues |
|
387.0 |
|
|
|
345.2 |
|
|
|
1,196.3 |
|
|
|
1,140.4 |
|
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
|
Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below) |
|
86.9 |
|
|
|
87.9 |
|
|
|
300.4 |
|
|
|
339.1 |
|
|
Operating and maintenance |
|
64.1 |
|
|
|
55.9 |
|
|
|
183.2 |
|
|
|
167.4 |
|
|
Administrative and general |
|
46.7 |
|
|
|
34.9 |
|
|
|
121.8 |
|
|
|
106.7 |
|
|
Property and other taxes |
|
46.1 |
|
|
|
41.6 |
|
|
|
137.5 |
|
|
|
125.0 |
|
|
Depreciation and depletion |
|
62.8 |
|
|
|
57.0 |
|
|
|
187.6 |
|
|
|
170.6 |
|
|
Total Operating Expenses |
|
306.7 |
|
|
|
277.2 |
|
|
|
930.5 |
|
|
|
908.8 |
|
|
Operating income |
|
80.3 |
|
|
|
67.9 |
|
|
|
265.8 |
|
|
|
231.6 |
|
|
Interest expense, net |
|
(38.4 |
) |
|
|
(33.4 |
) |
|
|
(111.1 |
) |
|
|
(96.3 |
) |
|
Other income, net |
|
5.1 |
|
|
|
9.1 |
|
|
|
9.1 |
|
|
|
19.6 |
|
|
Income before income taxes |
|
47.0 |
|
|
|
43.7 |
|
|
|
163.8 |
|
|
|
155.0 |
|
|
Income tax (expense) benefit |
|
(8.8 |
) |
|
|
3.2 |
|
|
|
(27.4 |
) |
|
|
(11.4 |
) |
|
Net Income |
$ |
38.2 |
|
|
$ |
46.8 |
|
|
$ |
136.4 |
|
|
$ |
143.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Common Shares Outstanding |
|
61.4 |
|
|
|
61.3 |
|
|
|
61.4 |
|
|
|
61.3 |
|
|
Basic Earnings per Average Common Share |
$ |
0.62 |
|
|
$ |
0.76 |
|
|
$ |
2.22 |
|
|
$ |
2.34 |
|
|
Diluted Earnings per Average Common Share |
$ |
0.62 |
|
|
$ |
0.76 |
|
|
$ |
2.22 |
|
|
$ |
2.34 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Dividends Declared per Common Share |
$ |
0.66 |
|
|
$ |
0.65 |
|
|
$ |
1.98 |
|
|
$ |
1.95 |
|
|
Note: Subtotal variances may exist due to rounding. |
|
|
|
|
|||||||||||
|
RECONCILIATION OF PRIMARY CHANGES DURING THE QUARTER |
|||||||||||||||
|
|
Three Months Ended September 30, 2025 vs. 2024 |
||||||||||||||
|
($ in millions, except per share amounts) |
Pre-tax Income |
|
Income Tax (Expense) Benefit (3) |
|
Net Income |
|
Diluted Earnings Per Share |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Third Quarter, 2024 |
$ |
43.6 |
|
|
$ |
3.2 |
|
|
$ |
46.8 |
|
|
$ |
0.76 |
|
|
Variance in revenue and fuel, purchased supply, and direct transmission expense(1) items impacting net income: |
|
|
|
|
|
|
|
||||||||
|
Rates |
|
29.3 |
|
|
|
(7.4 |
) |
|
|
21.9 |
|
|
|
0.35 |
|
|
Electric retail volumes |
|
5.8 |
|
|
|
(1.5 |
) |
|
|
4.3 |
|
|
|
0.07 |
|
|
Production tax credits, offset within income tax benefit |
|
3.0 |
|
|
|
(3.0 |
) |
|
|
— |
|
|
|
— |
|
|
Electric transmission revenue |
|
2.1 |
|
|
|
(0.5 |
) |
|
|
1.6 |
|
|
|
0.03 |
|
|
Natural gas transportation |
|
1.3 |
|
|
|
(0.3 |
) |
|
|
1.0 |
|
|
|
0.02 |
|
|
Natural gas retail volumes |
|
0.6 |
|
|
|
(0.2 |
) |
|
|
0.4 |
|
|
|
0.01 |
|
|
Non-recoverable Montana electric supply costs |
|
(3.0 |
) |
|
|
0.8 |
|
|
|
(2.2 |
) |
|
|
(0.04 |
) |
|
Montana property tax tracker collections |
|
(2.8 |
) |
|
|
0.7 |
|
|
|
(2.1 |
) |
|
|
(0.04 |
) |
|
Other |
|
0.9 |
|
|
|
(0.2 |
) |
|
|
0.7 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Variance in expense items(2) impacting net income: |
|
|
|
|
|
|
|
||||||||
|
Operating, maintenance, and administrative, excluding merger-related costs |
|
(11.5 |
) |
|
|
2.9 |
|
|
|
(8.6 |
) |
|
|
(0.14 |
) |
|
Merger-related costs |
|
(7.6 |
) |
|
|
— |
|
|
|
(7.6 |
) |
|
|
(0.12 |
) |
|
Property and other taxes not recoverable within trackers |
|
(0.9 |
) |
|
|
0.2 |
|
|
|
(0.7 |
) |
|
|
(0.01 |
) |
|
Depreciation |
|
(5.8 |
) |
|
|
1.5 |
|
|
|
(4.3 |
) |
|
|
(0.07 |
) |
|
Interest expense |
|
(5.0 |
) |
|
|
1.3 |
|
|
|
(3.7 |
) |
|
|
(0.06 |
) |
|
Prior year gas repairs safe harbor method change |
|
— |
|
|
|
(7.0 |
) |
|
|
(7.0 |
) |
|
|
(0.11 |
) |
|
Other |
|
(3.0 |
) |
|
|
0.7 |
|
|
|
(2.3 |
) |
|
|
(0.04 |
) |
|
Dilution from higher share count |
|
|
|
|
|
|
|
— |
|
||||||
|
Third Quarter, 2025 |
$ |
47.0 |
|
|
$ |
(8.8 |
) |
|
$ |
38.2 |
|
|
$ |
0.62 |
|
|
Change in Net Income |
|
|
|
|
$ |
(8.6 |
) |
|
$ |
(0.14 |
) |
||||
|
(1) Exclusive of depreciation and depletion shown separately below (2) Excluding fuel, purchased supply, and direct transmission expense (3) Income Tax (Expense) Benefit calculation on reconciling items assumes blended federal plus state effective tax rate of 25.3%. |
|||||||||||||||
EXPLANATION OF CONSOLIDATED RESULTS
Three Months Ended September 30, 2025 Compared with the Three Months Ended September 30, 2024
Consolidated gross margin for the three months ended September 30, 2025 was $127.1 million as compared with $102.8 million in 2024, an increase of $24.3 million, or 23.6 percent. This increase was primarily due to higher retail rates, natural gas and electric usage, electric transmission revenues, and natural gas transportation revenues. These were partly offset by higher operating and maintenance costs, depreciation, Montana property tax tracker collections, and non-recoverable Montana electric supply costs.
|
($ in millions) |
|
Three Months Ended September 30, |
||||
|
Reconciliation of gross margin to utility margin: |
|
2025 |
|
2024 |
||
|
|
|
|
||||
|
Operating Revenues |
|
$ |
387.0 |
|
$ |
345.2 |
|
Less: Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below) |
|
|
86.9 |
|
|
87.9 |
|
Less: Operating and maintenance |
|
|
64.1 |
|
|
55.9 |
|
Less: Property and other taxes |
|
|
46.1 |
|
|
41.6 |
|
Less: Depreciation and depletion |
|
|
62.8 |
|
|
57.0 |
|
Gross Margin |
|
|
127.1 |
|
|
102.8 |
|
Operating and maintenance |
|
|
64.1 |
|
|
55.9 |
|
Property and other taxes |
|
|
46.1 |
|
|
41.6 |
|
Depreciation and depletion |
|
|
62.8 |
|
|
57.0 |
|
Utility Margin(1) |
|
$ |
300.1 |
|
$ |
257.3 |
|
(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below. |
||||||
|
|
Three Months Ended September 30, |
||||||||||
|
($ in millions) |
2025 |
|
2024 |
|
Change |
|
% Change |
||||
|
Utility Margin |
|
|
|
|
|
|
|
||||
|
Electric |
$ |
262.6 |
|
$ |
225.7 |
|
$ |
36.9 |
|
16.3 |
% |
|
Natural Gas |
|
37.5 |
|
|
31.6 |
|
|
5.9 |
|
18.7 |
|
|
Total Utility Margin(1) |
$ |
300.1 |
|
$ |
257.3 |
|
$ |
42.8 |
|
16.6 |
% |
|
(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below. |
|||||||||||
Consolidated utility margin for the three months ended September 30, 2025 was $300.1 million as compared with $257.3 million for the same period in 2024, an increase of $42.8 million, or 16.6 percent.
Primary components of the change in utility margin include the following:
|
($ in millions) |
Utility Margin 2025 vs. 2024 |
||
|
Utility Margin Items Impacting Net Income |
|
||
|
Interim rates (subject to refund) |
$ |
27.1 |
|
|
Electric retail volumes |
|
5.8 |
|
|
Base rates |
|
2.2 |
|
|
Transmission revenue due to market conditions and rates |
|
2.1 |
|
|
Montana natural gas transportation |
|
1.3 |
|
|
Natural gas retail volumes, including $1.4 million due to acquisition of Energy West Operations |
|
0.6 |
|
|
Non-recoverable Montana electric supply costs |
|
(3.0 |
) |
|
Montana property tax tracker collections |
|
(2.8 |
) |
|
Other |
|
0.9 |
|
|
Change in Utility Margin Items Impacting Net Income |
|
34.2 |
|
|
Utility Margin Items Offset Within Net Income |
|
||
|
Property and other taxes recovered in revenue, offset in property and other taxes |
|
3.6 |
|
|
Production tax credits, offset in income tax expense |
|
3.0 |
|
|
Operating expenses recovered in revenue, offset in operating and maintenance expense |
|
2.0 |
|
|
Change in Utility Margin Items Offset Within Net Income |
|
8.6 |
|
|
Increase in Consolidated Utility Margin(1) |
$ |
42.8 |
|
|
(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below. |
|
||
Electric retail volumes were driven by favorable weather in South Dakota impacting residential demand, higher residential and commercial demand in Montana, and customer growth in all jurisdictions, partly offset by lower commercial demand in South Dakota and lower industrial demand. Natural gas retail volumes were impacted by favorable weather in South Dakota and Nebraska, higher commercial demand, and customer growth in all jurisdictions, partly offset by unfavorable weather in Montana.
Under the PCCAM, net supply costs higher or lower than the PCCAM base rate (PCCAM Base) (excluding qualifying facility costs) are allocated 90 percent to Montana customers and 10 percent to shareholders. For the three months ended September 30, 2025, we under-collected supply costs of $21.1 million resulting in an increase to our under collection of costs, and recorded a decrease in pre-tax earnings of $2.3 million (10 percent of the PCCAM Base cost variance). For the three months ended September 30, 2024, we over-collected supply costs of $5.9 million resulting in a reduction to our under collection of costs, and recorded an increase in pre-tax earnings of $0.7 million (10 percent of the PCCAM Base cost variance).
|
|
Three Months Ended September 30, |
||||||||||
|
($ in millions) |
2025 |
|
2024 |
|
Change |
|
% Change |
||||
|
Operating Expenses (excluding fuel, purchased supply and direct transmission expense) |
|
|
|
|
|
|
|
||||
|
Operating and maintenance |
$ |
64.1 |
|
$ |
55.9 |
|
$ |
8.2 |
|
14.7 |
% |
|
Administrative and general |
|
46.7 |
|
|
34.9 |
|
|
11.8 |
|
33.8 |
|
|
Property and other taxes |
|
46.1 |
|
|
41.6 |
|
|
4.5 |
|
10.8 |
|
|
Depreciation and depletion |
|
62.8 |
|
|
57.0 |
|
|
5.8 |
|
10.2 |
|
|
Total Operating Expenses (excluding fuel, purchased supply and direct transmission expense) |
$ |
219.7 |
|
$ |
189.4 |
|
$ |
30.3 |
|
16.0 |
% |
Consolidated operating expenses, excluding fuel, purchased supply and direct transmission expense, were $219.7 million for the three months ended September 30, 2025, as compared with $189.4 million for the three months ended September 30, 2024. Primary components of the change include the following:
|
|
Operating Expenses |
||
|
($ in millions) |
2025 vs. 2024 |
||
|
Operating Expenses (excluding fuel, purchased supply and direct transmission expense) Impacting Net Income |
|
||
|
Merger-related costs, including consulting and legal fees |
$ |
7.6 |
|
|
Depreciation expense due to plant additions and higher depreciation rates |
|
5.8 |
|
|
Wildfire mitigation expense, partly offset by higher base revenues |
|
3.8 |
|
|
Labor and benefits(1) |
|
1.6 |
|
|
Electric generation maintenance |
|
1.3 |
|
|
Insurance expense, primarily due to increased wildfire risk premiums |
|
1.0 |
|
|
Property and other taxes not recoverable within trackers |
|
0.9 |
|
|
Technology implementation and maintenance expenses |
|
0.7 |
|
|
Uncollectible accounts |
|
0.5 |
|
|
Prior period partial recovery from previously impaired alternative energy storage investment |
|
0.5 |
|
|
Other |
|
2.1 |
|
|
Change in Items Impacting Net Income |
|
25.8 |
|
|
|
|
||
|
Operating Expenses Offset Within Net Income |
|
||
|
Property and other taxes recovered in trackers, offset in revenue |
|
3.6 |
|
|
Operating and maintenance expenses recovered in trackers, offset in revenue |
|
2.0 |
|
|
Pension and other postretirement benefits, offset in other income(1) |
|
(0.6 |
) |
|
Deferred compensation, offset in other income |
|
(0.5 |
) |
|
Change in Items Offset Within Net Income |
|
4.5 |
|
|
Increase in Operating Expenses (excluding fuel, purchased supply and direct transmission expense) |
$ |
30.3 |
|
|
(1) In order to present the total change in labor and benefits, we have included the change in the non-service cost component of our pension and other postretirement benefits, which is recorded within other income on our Condensed Consolidated Statements of Income. This change is offset within this table as it does not affect our operating expenses. |
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We estimate property taxes throughout each year, and update those estimates based on valuation reports received from the Montana Department of Revenue. Under Montana law, we are allowed to track the increases and decreases in the actual level of state and local taxes and fees and adjust our rates to recover the increase or decrease between rate cases less the amount allocated to FERC-jurisdictional customers and net of the associated income tax benefit.
Consolidated operating income for the three months ended September 30, 2025 was $80.3 million as compared with $67.9 million in the same period of 2024. This increase was primarily due to new rates, customer usage, electric transmission revenues, and natural gas transportation revenues. These were partly offset by unfavorable weather in Montana, higher operating, administrative, and general costs, including merger-related costs, depreciation, Montana property tax tracker collections, and non-recoverable Montana electric supply costs.
Consolidated interest expense was $38.4 million for the three months ended September 30, 2025 as compared with $33.4 million for the same period of 2024. This increase was due to higher borrowings and interest rates and lower capitalization of Allowance for Funds Used During Construction (AFUDC).
Contacts
Investor Relations Contact:
Travis Meyer (605) 978-2967
Media Contact:
Jo Dee Black (866) 622-8081
