- 2024 Diluted GAAP EPS of $3.65, compared to $3.22 in 2023.
- 2024 Adjusted Diluted Non-GAAP EPS of $3.40, compared to $3.27 in 2023.
- Affirms 4% to 6% long-term EPS growth rate.
- Increases quarterly dividend by 1.5% – to $0.66 per share – payable March 31, 2025.
- Announces $2.7 billion 5-year capital plan, an 11% increase over prior plan.
BUTTE, Mont. & SIOUX FALLS, S.D.–(BUSINESS WIRE)–NorthWestern Energy Group, Inc. d/b/a NorthWestern Energy (Nasdaq: NWE) reported financial results for the year ended December 31, 2024. Net income for the period was $224.1 million, or $3.65 per diluted share, as compared with net income of $194.1 million, or $3.22 per diluted share, for the same period in 2023. NorthWestern’s 2024 non-GAAP net income and earnings per share were $208.9 million and $3.40, respectively, compared to $197.3 million and $3.27 in 2023. See “Adjusted Non-GAAP Earnings” and “Non-GAAP Financial Measures” sections below for more information on these measures.
Full-year 2024 earnings were driven by the resolution of rate reviews in Montana and South Dakota, higher electric transmission revenues, and income tax benefits, partly offset by non-recoverable electric supply costs, a less favorable QF (qualifying facility) liability adjustment, mild weather, insurance costs, depreciation, and interest expense.
“We are pleased to report a year of strategic progress and strong execution in 2024, reinforcing our commitment to providing safe, reliable, and affordable energy to our customers. It has been a busy year for everyone at NorthWestern as we continue to focus on delivering essential services while making critical investments for the future,” said Brian Bird, President & Chief Executive Officer.
“A key priority this year was ensuring the long-term resilience of our system. We filed rate reviews across all jurisdictions to recover the necessary investments made to support our obligation to provide safe and reliable service to our customers. We substantially completed our 175MW Yellowstone County Generating Station which is already in service and benefiting customers by reducing reliance on volatile and costly power market purchases. Additionally, we announced plans to invest in several regional transmission projects, including the North Plains Connector project, and entered into an agreement to acquire incremental Colstrip ownership to further enhance reliability and provide capacity in Montana. These actions have opened the door to large-load customers like the two recently announced data centers that will ultimately encourage economic development in the state and help lower energy costs for everyone.”
“Beyond reliability, we made excellent progress in enhancing system safety and sustainability. The release of our Wildfire Mitigation Plan and Public Safety Power Shutoff plan reflects our proactive approach to protecting customers and the beautiful land we call home. Additionally, our planned acquisition of Energy West Montana’s and Cut Bank Gas’s natural gas assets and customers strengthens NorthWestern’s position in Montana, aligning with our long-term strategy. While we faced headwinds in 2024—including inflation, the delay in interim rates in Montana, and adverse weather—we remain confident in our path forward. I continue to be proud of our employees’ dedication and hard work in delivering safe, affordable, and reliable energy. Their efforts ensure we continue to serve our customers, support our communities, and create long-term value for our shareholders. As we look to 2025, we are well-positioned to build on this momentum and continue delivering a bright future,” said Bird.
FOURTH QUARTER FINANCIAL RESULTS
Net income for the three months ending December 31, 2024 was $80.6 million, or $1.31 per diluted share, as compared with net income of $83.1 million, or $1.37 per diluted share, for the same period in 2023. This decrease of $2.5 million in net income was primarily due to higher insurance costs, non-recoverable electric supply costs, mild weather, depreciation, and interest expense, partly offset by new rates in Montana and South Dakota, higher electric transmission revenues, and income tax benefits.
Adjusted diluted non-GAAP earnings per share for the quarter was $1.13 (or $0.18 lower than GAAP after adjusting to exclude the impact of an income tax benefit and unfavorably mild weather) as compared to $1.38 for the same period in 2023. See “Adjusted Non-GAAP Earnings” and “Non-GAAP Financial Measures” sections below for additional information on these measures, including a reconciliation of GAAP diluted earnings per share to Non-GAAP adjusted diluted earnings per share.
FINANCIAL OUTLOOK
Affirming Long-Term EPS Growth and Announcing Capital Plan
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 announcing a $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, representing a 1.5% increase over the previous quarter’s dividend. The dividend is payable on March 31, 2025, to shareholders of record as of March 14, 2025.
Looking ahead, we remain committed to maintaining a dividend payout ratio within our targeted range of 60-70% over the long term.
Additional information regarding this release can be found in the earnings presentation at https://www.northwesternenergy.com/investors/earnings.
COMPANY UPDATES
Regulatory Update
Rate reviews are necessary to recover the cost of providing safe, reliable service, while contributing to earnings growth and achieving our financial objectives. We regularly review the need for electric and natural gas rate adjustments in each state in which we provide service. Our ongoing rate review activity includes the following:
Montana Rate Review – In July 2024, we filed a Montana electric and natural gas rate review (2023 test year) with the Montana Public Service Commission (MPSC). The filing requests a base rate annual revenue increase of $156.5 million ($69.4 million net with Property Tax and Power Cost and Credit Recovery Mechanism (PCCAM) tracker adjustments) for electric and $28.6 million for natural gas. Our request is based on a return on equity of 10.80 percent with a capital structure including 46.81 percent equity, and forecasted 2024 electric and natural gas rate base of $3.45 billion and $731.9 million, respectively. The electric rate base investment includes the 175-megawatt natural gas-fired Yellowstone County Generating Station, which was placed in service in October 2024.
In November 2024, the MPSC partially approved our requested interim rates, which are subject to refund, increasing electric and natural gas base rates by $18.4 million and $17.4 million, respectively, and decreasing our PCCAM base costs by $88.0 million, effective December 1, 2024.
In January 2025, intervenor testimony was filed and we anticipate filing our rebuttal testimony in March 2025. Based on the procedural schedule developed by the MPSC, a hearing on our rate review request is scheduled to commence on April 22, 2025. If a final order is not received by May 23, 2025, which is 270 days from acceptance of our filing, we intend to implement our requested rates as permitted by the MPSC regulations, which will be subject to refund until a final order is received.
South Dakota Natural Gas Rate Review – In June 2024, we filed a natural gas rate review (2023 test year) with the South Dakota Public Utilities Commission (SDPUC) for an annual increase to natural gas rates totaling approximately $6.0 million. Our request was based on a rate of return of 7.75 percent and rate base of $95.6 million. In December 2024, the SDPUC issued a final order approving the settlement agreement between NorthWestern and SDPUC Staff for an annual increase in base rates of approximately $4.6 million and an authorized rate of return of 6.91 percent. The approved settlement is based on a rate base of $96.2 million. Final rates were effective December 19, 2024.
Nebraska Natural Gas Rate Review – In June 2024, we filed a natural gas rate review (2023 test year) with the Nebraska Public Service Commission (NPSC). The filing requests a base rate annual revenue increase of $3.6 million. Our request is based on a return on equity of 10.70 percent, a capital structure including 53.13 percent equity, and rate base of $47.4 million. Interim rates, which increased base natural gas rates $2.3 million, were implemented on October 1, 2024. Interim rates will remain in effect on a refundable basis until the NPSC issues a final order.
Electric Resource Planning – Montana
Yellowstone County 175 MW plant – Construction of the generation facility was substantially completed and the plant placed in service in October 2024. As of December 31, 2024, we have incurred $305.5 million of generation plant costs and $12.1 million of non-generation plant costs related to Yellowstone County Generating Station (YCGS). The lawsuit challenging the YCGS air quality permit, which required us to suspend construction activities for a period of time, as well as additional related legal and construction challenges, delayed the project timing and increased costs. On January 3, 2025, the Montana Supreme Court ordered that the YCGS air quality permit be reinstated.
Acquisition of Colstrip Interests – As previously disclosed, in January 2023 and in July 2024, we entered into definitive agreements, the first with Avista Corporation (Avista) and the second with Puget Sound Energy (Puget), to acquire their respective interests in Colstrip Units 3 & 4 for $0. In particular, we agreed to acquire a 15% (222 megawatts) interest from Avista and a 25% (370 megawatts) interest from Puget. These agreements are substantially similar and are both scheduled to close December 31, 2025, subject to the satisfaction of customary closing conditions and approvals contained within the agreements. Under the terms of the agreements, we will be responsible for operating costs starting on January 1, 2026; while 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 decommission and demolition costs associated with the existing facilities that comprise their interests.
Acquisition of Avista and Puget’s interests would result in our ownership of 55 percent of the facility with the ability to guide operating and maintenance investments. This would provide capacity to help us meet our obligation to provide reliable and cost effective power to our customers in Montana, while allowing opportunity for us to identify and plan for newer lower or no-carbon technologies in the future.
Environmental Protection Agency (EPA) Rules
In April 2024, the EPA released Greenhouse Gas (GHG) Rules for existing coal-fired facilities and new coal and natural gas-fired facilities as well as Mercury and Air Toxics Standards (MATS) Rules. Compliance with the rules will require expensive upgrades at Colstrip Units 3 and 4 with proposed compliance dates that may not be achievable and / or require technology that is unproven, resulting in significant impacts to costs of the facilities. The final MATS and GHG Rules require compliance as early as 2027 and 2032, respectively. However, the Trump Administration is evaluating energy related regulations impacting reliability and affordability which may impact the EPA rules.
Acquisition of Energy West Montana Assets
In July 2024, we entered into an Asset Purchase Agreement with Hope Utilities to acquire its Energy West natural gas utility distribution system and operations serving approximately 33,000 customers located near Great Falls, Cut Bank, and West Yellowstone, Montana for approximately $39.0 million, subject to certain working capital and other agreed upon closing adjustments. The transaction is subject to a number of customary closing conditions, including MPSC approval, and we expect the acquisition to be completed in the first half of 2025.
Regional Transmission Development Activities
In August 2024, the U.S. Department of Energy awarded a $700.0 million grant through the Grid Resilience and Innovation Partnership (GRIP) program to advance the North Plains Connector (NPC) Consortium project. The 415-mile, high-voltage direct-current transmission line is intended to connect Montana’s Colstrip substation, of which we are the operator and a joint owner, to central North Dakota, bridging the eastern and western U.S. energy grids. The NPC Consortium includes potential upgrades to our jointly owned Colstrip Transmission System and $70.0 million of the award is earmarked for the Colstrip Transmission System Upgrade. The NPC project, estimated to be a $3.6 billion investment, aims to enhance grid reliability, support renewable energy integration, and provide additional capacity across multiple states. We collaborated with Grid United, the Montana Department of Commerce, and other regional utilities on the successful GRIP grant application.
In addition to the Colstrip Transmission System Upgrade, in December 2024, we signed a nonbinding memorandum of understanding (MOU) with North Plains Connector LLC, a wholly owned subsidiary of Grid United, to own 10 percent (300 megawatts) of the NPC Consortium project. The project is entering the permitting phase and initiating regulatory filings with approvals targeted in 2026. Construction is expected to commence in 2028, with the project expected to be operational by 2032. Under the terms of the MOU, Grid United will continue to fund the development of the NPC and we will invest when the regulatory approvals and permits are in place. The project is a critical infrastructure investment that aligns with our commitment to providing reliable and affordable energy to our customers while also supporting broader grid resilience efforts in the region.
President Trump issued an Executive Order on January 20, 2025, “Unleashing American Energy,” directing all federal executive agency heads to review all agency actions implicating energy reliability and affordability or potentially burdening the development of domestic energy resources. This Executive Order has delayed, for up to 90 days, the disbursement of the funds granted by the U.S. Department of Energy for the NPC Consortium project.
We have also entered into a nonbinding letter of intent with Grid United to continue transmission development to further enhance the grid through the southwest corridor of Montana. Development to expand the southwest corridor of Montana through grid build out would represent a significant step in enhancing connectivity between Montana and the broader Western energy market – bolstering grid reliability, allowing for critical import capability, and enabling customers to access and benefit from emerging energy markets in the West.
Montana Data Centers
In December 2024, we announced two separate nonbinding letters of intent to provide electric supply services for data centers being developed in Montana. The combined energy service requirement is expected to be 75 megawatts beginning in early 2026 with growth of up to 400 megawatts or more by 2030. Our strategic acquisition of additional interest in Colstrip Units 3 & 4 beginning in 2026, the construction of the YCGS, and our balanced energy portfolio have enabled us to serve new large energy supply customers while continuing to provide our current customers with affordable and reliable energy.
|
CONSOLIDATED STATEMENT OF INCOME |
||||||||
|
|
Year Ended December 31, |
|||||||
|
(in millions, except per share amounts) |
2024 |
|
2023 |
|||||
|
Revenues |
|
|
|
|||||
|
Electric |
$ |
1,200.7 |
|
|
$ |
1,068.8 |
|
|
|
Gas |
|
313.2 |
|
|
|
353.3 |
|
|
|
Total Revenues |
|
1,513.9 |
|
|
|
1,422.1 |
|
|
|
Operating Expenses |
|
|
|
|||||
|
Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below) |
|
433.8 |
|
|
|
420.2 |
|
|
|
Operating and maintenance |
|
227.8 |
|
|
|
220.5 |
|
|
|
Administrative and general |
|
137.4 |
|
|
|
117.3 |
|
|
|
Property and other taxes |
|
163.9 |
|
|
|
153.1 |
|
|
|
Depreciation and depletion |
|
227.6 |
|
|
|
210.5 |
|
|
|
Total Operating Expenses |
|
1,190.6 |
|
|
|
1,121.7 |
|
|
|
Operating Income |
|
323.3 |
|
|
|
300.5 |
|
|
|
Interest Expense, net |
|
(131.7 |
) |
|
|
(114.6 |
) |
|
|
Other Income, net |
|
23.0 |
|
|
|
15.8 |
|
|
|
Income Before Income Taxes |
|
214.7 |
|
|
|
201.6 |
|
|
|
Income Tax Benefit (Expense) |
|
9.4 |
|
|
|
(7.5 |
) |
|
|
Net Income |
|
224.1 |
|
|
|
194.1 |
|
|
|
Basic Shares Outstanding |
|
61.3 |
|
|
|
60.3 |
|
|
|
Earnings per Share – Basic |
$ |
3.66 |
|
|
$ |
3.22 |
|
|
|
Diluted Shares Outstanding |
|
61.4 |
|
|
|
60.4 |
|
|
|
Earnings per Share – Diluted |
$ |
3.65 |
|
|
$ |
3.22 |
|
|
|
|
|
|
|
|||||
|
Dividends Declared per Common Share |
$ |
2.60 |
|
|
$ |
2.56 |
|
|
|
Note: Subtotal variances may exist due to rounding. |
||||||||
|
RECONCILIATION OF PRIMARY CHANGES |
||||||||||||||||
|
|
Year Ended December 31, 2024 vs. 2023 |
|||||||||||||||
|
|
Pre-tax Income |
|
Inc. Tax Benefit (Expense)(3) |
|
Net Income |
|
Diluted Earnings Per Share |
|||||||||
|
|
(in millions) |
|
|
|||||||||||||
|
December 31, 2023 |
$ |
201.6 |
|
|
$ |
(7.5 |
) |
|
$ |
194.1 |
|
|
$ |
3.22 |
|
|
|
Variance in revenue and fuel, purchased supply, and direct transmission expense(1) items impacting net income: |
|
|
|
|
|
|
|
|||||||||
|
Base rates |
|
62.4 |
|
|
|
(15.8 |
) |
|
|
46.6 |
|
|
$ |
0.77 |
|
|
|
Electric transmission revenue |
|
18.6 |
|
|
|
(4.7 |
) |
|
|
13.9 |
|
|
$ |
0.23 |
|
|
|
Montana interim rates (subject to refund) |
|
4.8 |
|
|
|
(1.2 |
) |
|
|
3.6 |
|
|
$ |
0.06 |
|
|
|
Montana natural gas transportation |
|
2.3 |
|
|
|
(0.6 |
) |
|
|
1.7 |
|
|
$ |
0.03 |
|
|
|
Montana property tax tracker collections |
|
1.1 |
|
|
|
(0.3 |
) |
|
|
0.8 |
|
|
$ |
0.01 |
|
|
|
Production tax credits, offset within income tax benefit (expense) |
|
0.2 |
|
|
|
(0.2 |
) |
|
|
— |
|
|
$ |
— |
|
|
|
Non-recoverable Montana electric supply costs |
|
(7.9 |
) |
|
|
2.0 |
|
|
|
(5.9 |
) |
|
$ |
(0.10 |
) |
|
|
QF liability adjustment |
|
(4.2 |
) |
|
|
1.1 |
|
|
|
(3.1 |
) |
|
$ |
(0.05 |
) |
|
|
Natural gas retail volumes |
|
(4.0 |
) |
|
|
1.0 |
|
|
|
(3.0 |
) |
|
$ |
(0.05 |
) |
|
|
Electric retail volumes |
|
(0.9 |
) |
|
|
0.2 |
|
|
|
(0.7 |
) |
|
$ |
(0.01 |
) |
|
|
Other |
|
(3.2 |
) |
|
|
0.8 |
|
|
|
(2.4 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
$ |
— |
|
|||||||
|
Variance in expense items(2) impacting net income: |
|
|
|
|
|
|
$ |
— |
|
|||||||
|
Operating, maintenance, and administrative |
|
(19.4 |
) |
|
|
4.9 |
|
|
|
(14.5 |
) |
|
$ |
(0.24 |
) |
|
|
Depreciation |
|
(17.1 |
) |
|
|
4.3 |
|
|
|
(12.8 |
) |
|
$ |
(0.21 |
) |
|
|
Interest expense |
|
(17.1 |
) |
|
|
4.3 |
|
|
|
(12.8 |
) |
|
$ |
(0.21 |
) |
|
|
Property and other taxes not recoverable within trackers |
|
(4.4 |
) |
|
|
1.1 |
|
|
|
(3.3 |
) |
|
$ |
(0.06 |
) |
|
|
Release of unrecognized tax benefits (inclusive of related interest previously accrued) |
|
— |
|
|
|
17.8 |
|
|
|
17.8 |
|
|
$ |
0.29 |
|
|
|
Gas repairs safe harbor method change |
|
— |
|
|
|
7.0 |
|
|
|
7.0 |
|
|
$ |
0.12 |
|
|
|
Other |
|
1.9 |
|
|
|
(4.8 |
) |
|
|
(2.9 |
) |
|
$ |
(0.05 |
) |
|
|
Dilution from higher share count |
|
|
|
|
|
|
$ |
(0.06 |
) |
|||||||
|
December 31, 2024 |
$ |
214.7 |
|
|
$ |
9.4 |
|
|
$ |
224.1 |
|
|
$ |
3.65 |
|
|
|
Change in Net Income |
|
|
|
|
$ |
30.0 |
|
|
$ |
0.43 |
|
|||||
|
(1) Exclusive of depreciation and depletion shown separately below |
||||||||||||||||
|
(2) Excluding fuel, purchased supply, and direct transmission expense |
||||||||||||||||
|
(3) Income Tax Benefit (Expense) calculation on reconciling items assumes blended federal plus state effective tax rate of 25.3%. |
||||||||||||||||
|
Note: Subtotal variances may exist due to rounding. |
||||||||||||||||
EXPLANATION OF CONSOLIDATED RESULTS
Year Ended December 31, 2024 Compared with Year Ended December 31, 2023
Consolidated gross margin in 2024 was $460.8 million as compared with $416.3 million in 2023, an increase of $44.5 million or 10.7 percent. This increase was primarily due to new base rates in Montana and South Dakota, electric transmission revenue, Montana interim rates, subject to refund, and Montana property tax tracker collections. These were offset in part by non-recoverable Montana electric supply costs, a less favorable QF liability adjustment, electric and natural gas retail volumes, and depreciation.
|
|
Year Ended December 31, |
|||||||
|
(in millions) |
2024 |
|
2023 |
|||||
|
Reconciliation of gross margin to utility margin: |
|
|
|
|||||
|
Operating Revenues |
$ |
1,513.9 |
|
|
$ |
1,422.1 |
|
|
|
Less: Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below) |
|
433.8 |
|
|
|
420.2 |
|
|
|
Less: Operating and maintenance |
|
227.8 |
|
|
|
220.5 |
|
|
|
Less: Property and other taxes |
|
163.9 |
|
|
|
154.6 |
|
|
|
Less: Depreciation and depletion |
|
227.6 |
|
|
|
210.5 |
|
|
|
Gross Margin |
|
460.8 |
|
|
|
416.3 |
|
|
|
Operating and maintenance |
|
227.8 |
|
|
|
220.5 |
|
|
|
Property and other taxes |
|
163.9 |
|
|
|
154.6 |
|
|
|
Depreciation and depletion |
|
227.6 |
|
|
|
210.5 |
|
|
|
Utility Margin(1) |
$ |
1,080.1 |
|
|
$ |
1,001.9 |
|
|
|
(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below. |
||||||||
|
|
Year Ended December 31, |
||||||||||||||
|
(in millions) |
2024 |
|
2023 |
|
Change |
|
% Change |
||||||||
|
|
|
||||||||||||||
|
Utility Margin |
|
|
|
|
|
|
|
||||||||
|
Electric |
$ |
871.1 |
|
|
$ |
806.1 |
|
|
$ |
65.0 |
|
|
8.1 |
% |
|
|
Natural Gas |
|
209.0 |
|
|
|
195.8 |
|
|
|
13.2 |
|
|
6.7 |
|
|
|
Total Utility Margin(1) |
$ |
1,080.1 |
|
|
$ |
1,001.9 |
|
|
$ |
78.2 |
|
|
7.8 |
% |
|
|
(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below. |
|||||||||||||||
Consolidated utility margin in 2024 was $1,080.1 million as compared with $1,001.9 million in 2023, an increase of $78.2 million, or 7.8 percent.
Primary components of the change in utility margin include the following:
|
(in millions) |
Utility Margin 2024 vs. 2023 |
|||
|
Utility Margin Items Impacting Net Income |
|
|||
|
Base rates |
$ |
62.4 |
|
|
|
Electric transmission revenue due to market conditions and rates |
|
18.6 |
|
|
|
Montana interim rates (subject to refund) |
|
4.8 |
|
|
|
Montana natural gas transportation |
|
2.3 |
|
|
|
Montana property tax tracker collections |
|
1.1 |
|
|
|
Non-recoverable Montana electric supply costs |
|
(7.9 |
) |
|
|
QF liability adjustment |
|
(4.2 |
) |
|
|
Natural gas retail volumes |
|
(4.0 |
) |
|
|
Electric retail volumes |
|
(0.9 |
) |
|
|
Other |
|
(3.0 |
) |
|
|
Change in Utility Margin Impacting Net Income |
|
69.2 |
|
|
|
|
|
|||
|
Utility Margin Items Offset Within Net Income |
|
|||
|
Property and other taxes recovered in revenue, offset in property and other taxes |
|
6.4 |
|
|
|
Operating expenses recovered in revenue, offset in operating and maintenance expense |
|
2.4 |
|
|
|
Production tax credits, offset in income tax expense |
|
0.2 |
|
|
|
Change in Items Offset Within Net Income |
|
9.0 |
|
|
|
Increase in Consolidated Utility Margin(1) |
$ |
78.2 |
|
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(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below. |
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Lower electric residential and commercial retail volumes were driven by unfavorable weather in South Dakota impacting residential demand and lower commercial demand in all jurisdictions as compared to the prior year, partly offset by higher industrial demand and customer growth. Lower natural gas retail volumes were driven by unfavorable weather in all jurisdictions partly offset by customer growth.
Under the PCCAM, net supply costs higher or lower than the PCCAM base rate (PCCAM Base) (excluding QF costs) are allocated 90 percent to Montana customers and 10 percent to shareholders. For the twelve months ended December 31, 2024, we under-collected supply costs of $8.0 million resulting in an increase to our under collection of costs, and recorded a decrease in pre-tax earnings of $0.9 million (10 percent of the PCCAM Base cost variance). For the twelve months ended December 31, 2023, we over collected supply costs of $32.9 million resulting in a reduction to our under collection of costs, and recorded an increase in pre-tax earnings of $7.0 million, which was inclusive of a $3.2 million increase in pre-tax earnings related to the retroactive application of higher PCCAM Base rates to July 1, 2022.
The less favorable adjustment to our electric QF liability (unrecoverable costs associated with contracts covered by the Public Utility Regulatory Policies Act of 1978 (PURPA) as part of a 2002 stipulation with the MPSC and other parties) reflects a $0.
Contacts
Investor Relations Contact:
Travis Meyer, (605) 978-2967
Media Contact:
Jo Dee Black, (866) 622-8081
