Montana PSC Increases Home Heating Discount

On October 25, the Public Service Commission ordered NorthWestern Energy to use universal system benefit (USB) funds to provide low-income households a 30 percent discount on natural gas bills and a 25 percent discount on electric bills from November 1 through April 30.

This action from the Commission doubles the current discount available to NorthWestern Energy gas customers through April but eliminates the discount during the late spring and summer. The year-round discount for electric customers will increase from 15 percent to 25 percent.

The discounts will apply to customers who qualify for LIHEAP at 150 percent or less of the federal poverty level. For a household of two, the income cut-off is about $19,200. About 9,000 of NorthWestern Energy's 310,000 customers in Montana are currently eligible for the program.

The commission also directed NorthWestern to give $575,000 of USB funds to the Energy Share program. Energy Share provides fuel bill assistance and emergency heating system repairs and is otherwise funded by voluntary contributions from individuals, organizations, churches, and utilities.

Natural gas prices are expected to hit record highs this winter. NorthWestern’s rates increased 27 percent last month and probably will rise again during the winter, company officials have said.

Source: The Montana Standard

Page Last Updated: May 23, 2007