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Montana regulators hold public hearings this week on energy merger

Public hearings start May 12 in Helena for the proposed merger involving Montana's largest utility, and environmental watchdogs want residents to show up.

The proposed deal involves NorthWestern Energy and South Dakota-based Black Hills Energy. Montana's Public Service Commission is tasked with deciding whether to approve the $15.4 billion merger. The commission scheduled four days for the hearings and there will be time for public comment.

Anne Hedges, executive director of the Montana Environmental Information Center, said it is important for people to be there and be heard.

"The public can show up and they can provide their two cents and ask the Public Service Commission to protect their interests," Hedges explained. "To make sure that this is something that will benefit Montana."

The utilities announced the merger in August 2025. They said it would allow them to create a stronger company, better able to serve its customers. They must get federal and state approval in Montana, Nebraska and South Dakota. The companies hope to close the deal by late 2026.

In a call last August, utility executives told investors the new company would be more competitive in attracting data centers. Hedges pointed out so far, NorthWestern has released few details on its agreements with such facilities in Montana. She feels it is cause for concern, especially given what has happened in other states with many data centers.

"Their bills have skyrocketed," Hedges observed. "The utilities make out like bandits. The data centers get subsidized by the existing customer base and that's exactly where we are headed."

Another issue for critics of the merger is the large, multistate utility it would create. The new company would serve around 2.1 million customers in eight states. Hedges believes it would mean Montana customers would no longer be a focus. She hopes the Public Service Commission demands answers to customer questions at the hearings.

"My biggest concern is they are not prioritizing the average Montanan, the affordability of the electric system, and the transparency that is demanded under the Constitution for this type of proposal," Hedges added.

This week's hearings will be held at the commission's office in Helena and can be seen on Zoom.

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