Yesterday, Montana’s Public Service Commission approved a request from NorthWestern Energy (NYSE:NWE), the largest electricity distribution company in the state, to purchase an existing coal-fired power plant in exchange for an agreement to operate under a regulated-rate plan that the PSC has promised will lower rates in the long run. Earlier this year, NorthWestern won approval (with the blessing of environmentalists!) for a new gas-fired power plant that it would also operate under state regulation.
Back in the mid-1990s, the state of Montana deregulated its electricpower industry and forced the former Montana Power Company to sell itsgenerating plants. Competition was supposed to lower electricity pricesfor customers. It didn’t quite work out that way, mostly because nopower company was interested in delivering electricity to state withnearly 150,000 square miles of area and fewer than one million people.
NorthWestern shares moved up nearly 8% yesterday, most of the uptickfollowing release of the state’s approval of the power plant buyout.
Paul Ausick
November 14, 2008
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
