NorthWestern (NWE) - 2025 Q4 - Annual Report

Merger and Acquisition - The company is in the process of a pending merger with Black Hills Corporation, which may face regulatory and shareholder approval delays[19] - The merger is expected to provide anticipated benefits and projected synergies, although realization timelines are uncertain[19] - The anticipated benefits of the merger include improved financial performance and increased market competitiveness, although there are risks related to regulatory approvals and potential delays[19] Operational Risks - The company faces risks related to supply chain constraints, tariffs, and inflation impacting capital expenditures and operating activities[24] - Changes in credit availability and commodity prices may adversely affect revenues and operating costs[24] - The company is subject to risks from natural disasters and cybersecurity threats that could impact operations[24] - The company is subject to various risks including changes in economic conditions, regulatory challenges, and potential natural disasters that could affect liquidity and operational results[24] Energy Production and Capacity - The company has a 55% ownership stake in the Colstrip coal-fired electric generation facility as of January 1, 2026[30] - The company operates several generating stations, including the 175 MW Yellowstone County Generating Station and the 150 MW Dave Gates Generating Station, contributing to its energy supply capacity[59][32] - The company emphasizes the importance of maintaining sufficient capacity to meet peak demand[29] - The Reserve Margin indicates the difference between available capacity and peak demand, ensuring adequate power supply[53] Regulatory Compliance and Oversight - The company operates under regulatory oversight from the Federal Energy Regulatory Commission (FERC) and the Montana Public Service Commission (MPSC)[33][45] - The company is committed to compliance with environmental regulations, including the Mercury Air Toxics Standard, which may impact operational costs[41] - The company is regulated by the Nebraska Public Service Commission and the South Dakota Public Utilities Commission[54][56] - The company adheres to Open Access Transmission Tariff (OATT) requirements to provide non-discriminatory access to its transmission system[50] Market Strategy and Expansion - The company is actively monitoring market conditions and customer usage patterns to adapt its strategies accordingly, which may include adjustments in pricing and service offerings[20] - The company is exploring opportunities for market expansion and new product development to enhance its service offerings and customer base[20] - NorthWestern Energy Group is constructing the North Plains Connector, a 3,000-megawatt, 415-mile high-voltage direct current transmission line[47] - NorthWestern Corporation provides electric and natural gas services in Montana and electric services to Yellowstone National Park[48] - The company operates a regulated utility subsidiary, NorthWestern Energy Public Service Corporation, which serves South Dakota and Nebraska[49] - The Power Cost and Credit Recovery Mechanism (PCCAM) is utilized in Montana to track power purchase costs and fuel expenses for recovery through utility rates[51] - NorthWestern Energy Group is involved in ensuring reliable power supplies and adequate transmission infrastructure through its participation in the Southwest Power Pool[55]