The Montana Public Service Commission announced Northwestern Energy has been overbilling customers.
They say that for the last 2 years they overcharged residents by 3 and a half million dollars.
According to the Public Service Commission, they are working to now make it so residential customers are treated more fairly compared to industrial customers when it comes to paying for the same services.
One of the reasons behind this is the amount of commercial and industrial customers who pay rates set by the federal government and not by the state.
According to the Public Service Commission, this means Northwestern energy then picked up the slack by overbilling residential customers, and not raising rates at the federal level. Now the error has been caught.
“Since they are a monopoly they don’t get to set their own prices, that’s our responsibility. They made a filing to us that contained this error. Now within the next couple of day, we will approve the new rates that they have calculated on this new basis,” says Commissioner Travis Kavulla.
The new rates will be presented to customers based on their electricity use, so not every customer will see the amount of money back.
The average resident in Montana will see a roughly 15 cent reduction in their electricity bills per month for the next couple of years.