NorthWestern Energy Group, Inc. Q1 FY2025 earnings call

• Dividend: Declared a $0.66 per share dividend payable June 30, 2025, with shareholders of record as of June 13, 2025.
• Rate Base and EPS: Affirmed long-term rate base and earnings per share growth rate targets of 4% to 6%.
• Debt Financing: Completed debt financing needs for 2025 with no planned equity for current 5-year capital investment.
• Montana Rate Review: Near completion, with a full natural gas settlement reached and partial electric settlement, hearing starts June 9.
• Legislative Success: Montana wildfire bill and transmission bill passed, wildfire bill provides legal protection and limits damages related to utility wildfire operations.
• Colstrip: No cost acquisition of incremental pieces from Avista and Puget, increased ownership to 55%, providing energy independence, reliability, and protection from volatile market pricing.
• Data Centers: Working with multiple parties in various stages of data center process, including LOIs with Atlas and Sabi, with studies ongoing for contractual estimates with these parties.

The first quarter 2025 results were driven by strong margin contributions from both electric and gas segments. New rates (via interim and final base rates) drove $0.20 of margin improvement across all jurisdictions. Favorable loads due to colder weather, customer growth, and usage contributed $0.13. Favorable transition revenues added about $0.05. The PCCAM had a detriment of $2.7 million in Q1 2025 compared to $3 million in Q1 2024, a slightly favorable $300,000 impact. Revenue contribution details weren't explicitly broken down by segment percentage, but the electric and gas segments both contributed to the strong margin.

• Affirmed long-term earnings and rate base growth outlook of 4% to 6%.
• Expect second quarter 2025 to be a lower contribution to overall earnings due to timing of rate implementation in Montana, with second quarter expected to be approximately 10% of full year earnings.
• No 2025 earnings guidance provided until conclusion of Montana rate review hearing.

• Wildfire risk, but Montana wildfire bill provides legal protection and limits damages related to utility wildfire operations.
• Uncertainties in transmission financing and the development of tariffs for additional data centers beyond the initial ones identified.

Q: On the tariff proceeding and timeline for data center conversations A: Brian Bird and Crystal Lail discussed that there are various stages in the data center process, with two LOI parties (Atlas and Sabi) in the contractual estimate stage, and studies ongoing to finalize contracts. Tariffs in Montana need further development for additional data centers beyond the first two.

Q: On electric average customer accounts and heating degree days A: Travis Meyer explained that the change in electric average customer accounts was related to the way street lighting districts were counted, and heating degree days use a rolling 10-year average methodology.

Q: On new capacity and Colstrip replacement A: Brian Bird stated that resource planning requires LOIs before discussing megawatts, and Colstrip replacement options include gas (for sooner needs) and nuclear (for longer term), with plenty of land available near Colstrip for potential new capacity.

Q: On SB 301 and approval process A: Brian Bird stated that the 300-day prudency review in SB 301 is appropriate and there are no overlapping timetables with other approval processes