The Montana Public Service Commission approved the $15.4 billion merger of Northwestern Energy and Black Hills Corp. on Tuesday, clearing the final state hurdle for a deal that will combine utilities serving 2.1 million electric and natural‑gas customers across eight states.

Commission vote and rationale

Commissioners Jennifer Fielder, Annie Bukacek and Kirk Bushman voted in favor. PSC President Jeff Welborn cast a “reluctant” no, while Commissioner Randy Pinocci opposed, citing concerns that Black Hills, based in South Dakota, stands to gain more than Montanans.

Fielder, who moved to approve the merger, highlighted “tens of millions of dollars in savings” that will be passed on to customers. The approved order explicitly states that rates will not increase as a result of the merger.

Consumer protections

The order requires Northwestern Energy to submit a plan by June 2027 to evaluate whether a portion of generation from the Colstrip Power Plant can be offered to Montana customers as a low‑cost electricity resource. A second condition directs the utility to analyze adding its newly‑acquired Puget Sound Energy shares into its 2026 Integrated Resource Plan.

Commissioners also noted that the merger includes “ring‑fencing” safeguards to keep the utility financially insulated from its parent company and affiliates. The Montana Consumer Counsel and the Large Customer Group helped negotiate stronger consumer protections.

Local reactions

Public comments were largely opposed, with residents fearing higher power bills, reduced utility oversight, and the burden of data‑center costs. Missoula resident Jan Hoem urged the PSC to adopt a two‑year fixed‑rate to shield customers from price volatility, while Billings senior citizen Patrick Sheehy expressed concern that the merger could lead to “exorbitant” charges for fixed‑income households.

Business leaders, however, praised the deal as essential for economic growth. Todd O’Hair of the Montana Chamber of Commerce said the merger will attract investment and help retain existing businesses in the state.

Comparisons and context

Some commenters likened the merger to the 1997 deregulation of Montana Power Company, which they claim led to higher costs and lost pensions. Commissioner Kirk Bushman rejected that comparison, noting the merger is a consolidation, not a breakup.

Credit agencies responded positively to news of the merger, and the order concluded that the combined company will be more financially resilient and able to procure goods and services at lower cost.

Next steps

Northwestern Energy spokesperson Jo Dee Black said the company will review the order and remains confident the merger serves customers’ interests. Once finalized, Black Hills will be renamed Bright Horizon Energy, with Northwestern Energy operating as its wholly‑owned subsidiary.

Original reporting: KOTA (Gray) – local — read the source article.