Montana PSC criticized for responses to water problems, energy rate case
Members of the public told the Montana Public Service Commission on Tuesday that last year’s action against a Helena area water utility was ineffective and that ratepayers are concerned about a languishing energy rate case. Regulators didn’t have on their agenda the North Star subdivision, where residents have experienced water shortages, or NorthWestern Energy’s rate […]
Members of the public told the Montana Public Service Commission on Tuesday that last year’s action against a Helena area water utility was ineffective and that ratepayers are concerned about a languishing energy rate case.
Regulators didn’t have on their agenda the North Star subdivision, where residents have experienced water shortages, or NorthWestern Energy’s rate case, but a state senator and conservation watchdog said the PSC needs to be accountable.
“What you do really affects people’s lives and their quality of life,” said Sen. Mary Ann Dunwell, a Helena Democrat who asked the PSC to consider solutions at North Star, a development with 300 households, including her constituents.
The Public Service Commission regulates monopoly utilities in Montana. A PSC spokesperson said Tuesday the agency also has concerns about North Star — and a plan to address them is in the works.
The PSC has been handling significant cases, including a proposed merger between NorthWestern Energy and Black Hills Corp, and dealing with the unprecedented suspension of a commissioner, Brad Molnar, after an investigation into misconduct.
In public comment, Dunwell said the PSC took action at North Star, but the water system still doesn’t seem to be fixed. She said in the meantime, the private utility is imposing unreasonable water restrictions, and it’s planning a rate increase.
“I … understand the need to explore a rate increase, but a 30% decrease in allowed usage for a 300% price increase seems egregious,” said Dunwell; she said a constituent shared the proposed increase with her.
Utility owner Doug Boutilier could not be reached Tuesday by email to verify any proposed rate increase by the utility or to comment on ongoing water problems.
In the past, Boutilier has said residents themselves contribute to the water problems, and a PSC regulatory staff member earlier confirmed residents at times ignored water restrictions.
Residents had raised concerns about water supply since at least 2020, and in December 2025, the PSC approved a settlement with the utility owner that included setting aside money for system repairs and improvements.
Reports to the PSC this year show the utility owner put the required $15,000 into an account as the commission ordered. A report filed in July by the utility operator noted no deficient water delivery issues for the previous month.
In an email Tuesday, however, PSC spokesperson Michael Turner said he believes the agency staff person who is monitoring North Star has “deep concerns” about its water supply and “has an aggressive plan developed” for the commission to consider.
Turner said the staff member was not available Tuesday for additional information, but he believes action will take place “soon.”
Also in public comment, Anne Hedges, with Montana Environmental Information Center, said the PSC is 16 months behind in a NorthWestern Energy rate case — one that could mean higher bills for customers.
Hedges said NorthWestern filed the rate case for an increase in July 2024, and the PSC has nine months to review it. She said the PSC held a hearing 13 months ago and made a preliminary decision in November.
She also said the PSC has not been clear about its process in the case.
“Although it’s difficult to find a final vote on it, and it’s uncertain exactly how commissioners voted, and that the vote was final … in December, the PSC put out a press release saying so,” Hedges said.
The PSC had said its decision in fall 2025 would mean reductions to customer rates because of a rare move the utility made in May 2025 to grant itself an increase.
But NorthWestern Energy also wants the PSC to reconsider its decision in the case, and Hedges said the PSC still hasn’t taken action on MEIC’s motion for reconsideration filed in January 2026.
“We understand the burden that you are under, but we also know that this rate case began over two years ago and should be the PSC’s highest priority,” Hedges said.
The PSC did not respond to a request for comment about the delay with the NorthWestern Energy rate case.