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Investor Presentaiton

J (dollars in millions) Appendix 43 Operating Expenses (Fourth Quarter) Three Months Ended December 31, 2020 2019 Variance Operating, general & admin. $ 73.1 $ 79.3 $ (6.2) (7.8%) Property and other taxes 42.7 38.7 4.0 10.3% Depreciation and depletion 45.3 43.1 2.2 5.1% Operating Expenses $ 161.1 $ 161.1 $ 0.0 0.0% Decrease in Operating, general & admin expense due to the following factors: $ (4.4) Employee benefits (2.5) Uncollectible accounts (1.2) Environmental costs (1.1) Labor (1.0) Travel and training (0.7) Hazard tree trimming 1.2 Generation maintenance (2.0) $ (11.7) $ 2.9 Other Change in OG&A Items Impacting Net Income Non-employee directors deferred compensation, offset in other income 1.4 1.2 $ 5.5 Pension and other postretirement benefits, offset in other income Operating expense recovered in trackers, offset in revenue Change in OG&A Items Offset Within Net Income $ (6.2) Decrease in Operating, General & Administrative Expenses $4.0 million increase in property and other taxes was primarily due to plant additions and higher estimated property valuations in Montana. $2.2 million increase in depreciation and depletion expense was primarily due to plant additions NorthWestern Energy Delivering a Bright Future
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