Rate hike approved by PSC

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By The Associated Press

Story Published: Jul 2, 2008 at 5:14 PM MDT

Story Updated: Jul 2, 2008 at 5:14 PM MDT

HELENA - The Public Service Commission has given final approval to a $15 million annual rate increase for NorthWestern Energy's electric and natural gas customers in Montana. Tuesday's vote was 3-2 to approve the increase.

In effect on a temporary basis since January, it raised rates about 2% for both electric and gas customers. It's the first time in eight years that NorthWestern or its predecessor, Montana Power Co., has raised its rates on the cost of delivering electricity and natural gas.

However, the utility's 320,000 customers in Montana have seen several price increases since 2002 for the gas and electricity commodity, which NorthWestern must buy on the open, unregulated market. NorthWestern customers now pay among the highest total electric rates in the region, when compared to other major utilities.

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