State regulators approveda settlementTuesday in Pierre reducing NorthWestern Energysproposed$8.38 monthly increase on the average residential natural gas customers bill to $6.44.
The 7% rate increase began as a request for a 9% increase. NorthWestern serves 49,800 natural gas customers in South Dakota.
The Public Utilities Commissions unanimous approval of the settlement will increase the companys natural gas revenues by $4.6 million annually, down from the originally proposed $6 million.
NorthWestern Energy had not adjusted natural gas rates in South Dakota since 2011. In its application, the company cited rising operational costs and 13 years of infrastructure investments as justification for the rate hike. The average residential customer can expect an increase of approximately $77 annually.
The settlement also includes a rate moratorium that prevents NorthWestern from seeking another natural gas rate increase until 2028, unless an extraordinary event occurs.
Earlier this year, NorthWestern Energywas approved for an11% electricity rate increase, though it was also reduced from an initial request. That decision added $13.67 per month to the average electric customers bill.
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