Investor Presentaiton
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Looking Forward (Regulatory)
The MPSC recently approved a pilot Fixed Cost Recovery Mechanism
(FCRM) effective July 1, 2020. We asked the MPSC to delay the start of the
pilot for one year until July 1, 2021 due to the uncertainty created by the
Covid-19 pandemic. The MPSC granted the requested one-year delay.
In May 2019, we filed proposed revisions to our FERC transmission
rates. In November 2020 we reached a settlement with intervenors
establishing formula rates. The settlement, and a motion to implement
settlement rates, were filed on November 16th. The motion was granted on
November 25th and we began charging settlement rates on December 1st. As
of December 31st, 2020 we had cumulative deferred revenue of
approximately $31.3 million that is expected to be refunded. We
refunded approximately $20.5 million to our wholesale and choice
customers in January 2021 and expect to submit a compliance filing
with the MPSC adjusting the FERC credit in our retail rates upon receipt
of a final order.
Each year we submit filings for recovery of purchased power, natural gas
and property tax costs. The respective state commissions review these
tracker filings and make cost recovery determinations based on prudency.
The MPSC voted in October to disallow recovery of approximately $9.4
million in prior period purchased power costs*. We issued refunds of
these disallowed costs to customers in January 2021, with interest calculated
from October 1, 2019 when interim rates went into effect.
* Of which $5.6 million related to a period in 2018 when Colstrip generation was operating intermittently to ensure it
remained in compliance with environmental emission standards and $3.8 million related to the prorated application of
the change in state law that eliminated the deadband component of the Power Cost and Credit Adjustment Mechanism.
This disallowance was recorded as a $9.4 million reduction to revenues in the fourth quarter 2020.
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NorthWestern
Energy
Delivering a Bright FutureView entire presentation