NorthWestern Energy Announces Filing of Montana Transmission Rate Settlement Agreement

SIOUX FALLS, S.D., Feb. 20  /PRNewswire-FirstCall/ -- NorthWestern Corporation d/b/a NorthWestern Energy (NASDAQ:NWEC) today announced that it has filed an agreement with the Federal Energy Regulatory Commission (FERC) that, if approved, would settle the company's pending transmission rate case before the regulatory body.

The proposed settlement addresses costs associated with providing transmission service and the pass through of costs to provide ancillary services.  The settlement revises the transmission rate structure from one based on load ratio share to a stated rate for network customers.  Using a stated rate provides rate certainty for transmission customers and NorthWestern Energy.

A transmission rate increase for network and point-to-point customers was filed in October 2006 and made effective in May 2007, subject to refund.  This was the first rate filing since rates were last adjusted in 1998.  As a result of settlement negotiations with intervening parties, a new stated rate of $3.16/kW per month for reserved capacity will be established for network and point-to-point customers.  This agreement does not affect retail customers in Montana because their relevant transmission costs are part of the pending Montana general rate case filing.

The proposed rate for point-to-point customers represents an increase of about 1.94%, which equates to an annual increase in gross margin of approximately $3 million.  The company recognized approximately $1.6 million of this increase in gross margin in 2007.

About NorthWestern Energy

Northwestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving more than 640,000 customers in Montana, South Dakota and Nebraska.  More information on NorthWestern Energy is available on the Company's Web site at http://www.northwesternenergy.com/. 

DATASOURCE: NorthWestern Corporation



CONTACT:  Media, Claudia Rapkoch, 1-866-622-8081,

, or Investor Relations, Dan Rausch,

[phone], , both of NorthWestern Energy



Web site:  http://www.northwesternenergy.com/ 

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