Montana PSC hearing on Northwestern–Black Hills merger features divided public comments and pointed testimony on data centers and customer protections

HELENA, Mont. — The Montana Public Service Commission continued its multi‑day evidentiary hearing on May 14 over the proposed merger of Northwestern Energy and Black Hills Corporation, with public commenters and sworn witnesses trading sharply different views about whether the transaction will help or hurt Montana customers.

Several in‑room and online commenters urged the commission to approve the merger, saying a larger utility could better finance transmission and other infrastructure. "This merger makes that investment more achievable," said Bob Morris of Butte, who identified himself as Lance Energy Chair at Montana Tech and a member of the governor's energy task force. Economic‑development leaders from Great Falls also told the commission a stronger utility would help attract jobs and housing growth.

Other public comments pressed the commission for skepticism. Richard Liebert of Cascade County warned of risks from past utility failures and urged caution, and former state lawmaker Mary McNally asked the commission to require accountability before approving a deal she said could mute Montanans' influence if control shifts out of state.

In the evidentiary record, the commission admitted Missoula County's prefiled testimony and a settlement the county reached with joint applicants; the county witness, Sveinne Newman, said Missoula does not oppose the merger but intervened to secure a path for a "Green Power Program" to be reviewed by the commission. Newman described the program as voluntary, opt‑in and limited to about 50 megawatts, with costs contained within a tariff and subscription agreements.

Joint applicants called Northwestern Energy operations executive Jason Merkel, who acknowledged the company's fiduciary obligations to investors but repeatedly told commissioners that regulatory responsibilities and legal obligations to serve Montana customers would remain in place if the merger is approved. Merkel said staffing and project prioritization are guided by system needs—safety and reliability first—and argued that larger scale could improve access to materials, contractors and purchasing power.

A sustained line of contention centered on how to treat large data‑center customers that are in the interconnection queue. Counsel for 350 Montana and the Montana Farmers Union, Monica Tranel, used investor slides and filings to say large new loads in the pipeline could nearly double Northwestern's existing system and that the commission should consider that risk here; joint applicants and other counsel repeatedly objected that the data‑center issues are being litigated in separate dockets and are not directly dispositive of the merger question. The commission sustained several objections but allowed offers of proof to preserve the record.

Black Hills witness Marnie Jones confirmed company disclosures showing a roughly 3‑gigawatt data‑center pipeline and said the company's five‑year financial plan includes roughly 600 megawatts by 2030. Jones also testified that Wyoming Electric has entered a generation reservation arrangement tied to an approximately 1.8‑gigawatt customer and that the company has received about $200 million in refundable customer contributions in aid of construction related to that reservation. Jones said additional investment would be required if load exceeds current planning levels. She described the Ready Wyoming transmission project—completed late 2025 and reported at about $350 million—as a step to reduce third‑party transmission costs for Wyoming retail customers.

The commission closed the public portion of the hearing for a confidential session after counsel indicated the next line of questioning would rely on documents protected by the commission's nondisclosure order. Press and the public were excluded from that session. The proceeding remains active; the PSC scheduled additional testimony and a return to confidential matters.