PSC APproves Black Hills/Northwestern Merger

LINCOLN – The Nebraska Public Service Commission has issued an order approving the proposed merger between natural gas utilities Black Hills Corp. and NorthWestern Energy Group, Inc. The Commission is required under state law to ensure such transactions do not harm customers and are consistent with the public interest.

With the order, Nebraska becomes the first state to approve the proposal. Approval remains pending before regulators in Montana and South Dakota, as well as federal authorities.

The Commission’s order today follows review of testimony, filings and evidence submitted in Docket NG-128. The order also approves settlement agreements reached between the utilities, the Laborers’ International Union of North America (LIUNA) and the Public Advocate appointed to represent ratepayers.

“The Commission undertook a thorough and careful review of this request to ensure it serves the public interest,” said Commission Chair Tim Schram. “Approval of the merger, subject to the terms of the settlement agreements, will support continued safe, reliable natural gas service for Nebraskans while maintaining responsible regulatory oversight and customer protections.”

As part of the approved settlements, the utilities agreed to a range of enforceable commitments, including:
• Rate protections: A moratorium on general base rate increases for NorthWestern Energy in Nebraska until May 1, 2027; and for Black Hills in Nebraska until May 1, 2028, with limited exceptions for extraordinary circumstances.
• Cost protections: A prohibition on recovering merger transaction costs from Nebraska ratepayers and restrictions on seeking recovery of certain transition costs unless customer benefits outweigh those costs.
• Oversight and reporting: Annual reporting on safety, service quality and merger integration activities to ensure ongoing accountability to regulators and the public.
• Workforce and contracting provisions: Commitments to fair contracting practices, consideration of Nebraska-based labor, and requirements tied to safety standards and compensation for large-scale infrastructure projects.

The Commission found that the agreements represent a reasonable resolution to the issues in the case and that the proposed merger would not adversely affect the utilities’ ability to serve their combined total of approximately 350,000 customers across Nebraska. Black Hills and NorthWestern have indicated that the merger is not expected to result in customer-facing changes to day-to-day services such as billing, meter reading or emergency response.

The utilities announced the all-stock merger in August 2025. It was approved by shareholders of both companies in April 2026.

The transaction is expected to close in the second half of 2026, pending remaining
governmental approvals.