NorthWestern Energy set to acquire Energy West Montana

GREAT FALLS — NorthWestern Energy announced in a news release on Tuesday, July 30, 2024, that it has entered into an agreement to acquire Energy West Montana from Hope Utilities for $39 million.

The proposed transaction will be reviewed and is subject to approval by the Montana Public Service Commission.

Energy West operations are located in Great Falls, Cut Bank, Cascade, and West Yellowstone.

Upon closing of the transaction, which is expected to occur in the first quarter of 2025, Energy West Montana’s employees will become NorthWestern Energy employees.

Energy West customers will remain Energy West customers until the sale closes and will transition to customers of NorthWestern Energy upon closing, with current Energy West rates remaining in effect after the transaction is complete.

“This is an opportunity for growth in our natural gas business in Montana by purchasing existing infrastructure built for Montanans and operated by a dedicated Montana team,” said NorthWestern Energy President and CEO Brian Bird in the news release. “We are excited about the opportunity to serve Energy West’s 33,000 customers across Great Falls, Cut Bank, Cascade and West Yellowstone. By integrating Energy West’s Montana operations, we believe customers, employees and communities will be well served as a part of our commitment to Montana and to delivering safe and reliable energy.”

NorthWestern Energy also announced Tuesday it has reached a deal to acquire a 370-megawatt share in the Colstrip coal plant in southeastern Montana. NorthWestern will take over the share of fellow co-owner Puget Sound Energy at no cost effective January 1, 2026.

The current majority stakeholder, Talen Energy, had originally made a deal to buy Puget Sound Energy’s stake in 2022, but that deal fell apart in the wake of Talen’s bankruptcy declaration.

Colstrip’s co-owners in the Pacific Northwest have been trying to get out of the coal business after voters in Washington and Oregon approved measures requiring utilities to move away from fossil fuels in favor of renewables, injecting uncertainty into the future of the plant.

NorthWestern argues that Montana needs the reliable baseload power that Colstrip provides to meet growing demand, supplemented by growing wind and solar energy on the grid.

Montana governor Greg Gianforte said, “Today’s announcement is yet another step in securing a strong future for Montana-made energy. Working with our partners, we’ve defended our all-of-the-above energy strategy to increase access to affordable, reliable energy for all Montana consumers. I thank NorthWestern for their continued investment in our state and in the community of Colstrip.”