Montana Requires Switch to 12-CP Method of Cost Allocation

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To facilitate a reduction in rates for retail electric consumers, the Montana Public Service Commission has ordered NorthWestern Energy to change the way it allocates property tax expense among its various customer classes. Historically, NorthWestern has used a tax tracker to adjust rates through which to recognize increases or decreases in its tax liability resulting from annual revaluations of the company’s property by the state’s Department of Revenue.

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