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• The AT&T or Verizon of electricity and natural gas.
• Like Union Pacific, but for transporting electricity and natural gas through wires and pipelines.

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• Electricity Service: Providing electric power to residential, commercial, and industrial customers through generation, transmission, and distribution infrastructure.
• Natural Gas Service: Delivering natural gas to homes and businesses for heating and other uses via an extensive pipeline and distribution network.

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NorthWestern Energy (NWE) Customer Categories

NorthWestern Energy (NWE) is a regulated public utility that provides electricity and natural gas services. As such, it sells primarily to a diverse base of individuals and businesses within its service territory, rather than having a few major "customer companies." Its customers are typically categorized by usage type:

• Residential Customers

  This category includes individual households that use electricity and natural gas for personal consumption, such as heating, cooling, lighting, and appliances.

• Commercial Customers

  This category encompasses businesses of various sizes, including retail stores, offices, restaurants, schools, and other commercial enterprises that utilize electricity and natural gas for their operations.

• Industrial Customers

  This category comprises larger industrial facilities, manufacturing plants, and other high-volume users of electricity and natural gas, often for production processes and large-scale operations.

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Brian B. Bird President and Chief Executive Officer

Brian B. Bird has served as President and Chief Executive Officer of NorthWestern Energy since January 2023. He joined NorthWestern Energy in December 2003 as Vice President and Chief Financial Officer, a role he held until 2021. From 2021 to 2022, he was the company's Chief Operating Officer and President. Before joining NorthWestern Energy, Mr. Bird's career included roles in internal audit at Land O'Lakes, cash management at Northwest Airlines, and finance manager at the Minnesota Vikings. He also served as director of finance at Deluxe Corp. and as Vice President and Treasurer at NRG Energy, a subsidiary of Xcel Energy, starting in 1997. He was also Chief Financial Officer of SUN Sports & Entertainment, Inc. from 2002 to 2003.

Crystal D. Lail Vice President and Chief Financial Officer

Crystal D. Lail has been the Vice President and Chief Financial Officer of NorthWestern Energy since October 2, 2023. Prior to this appointment, she served as Chief Accounting Officer and Vice President from 2020 to 2023, and as Vice President and Controller from 2015 to 2020. Ms. Lail began her career at NorthWestern Energy in 2003, initially working as an accountant and later as Assistant Controller starting in 2008. Before joining NorthWestern Energy, she was an auditor for KPMG. She is a Certified Public Accountant and holds a Bachelor of Business Administration from Evangel University and a Master of Business Administration from the University of Sioux Falls.

Shannon M. Heim General Counsel and Vice President – Federal Government Affairs

Shannon M. Heim serves as the General Counsel and Vice President – Federal Government Affairs for NorthWestern Energy. Her responsibilities include overseeing legal matters and federal government relations for the company.

John D. Hines Vice President - Supply/Montana Government Affairs

John D. Hines is the Vice President - Supply/Montana Government Affairs at NorthWestern Energy. In this role, he is responsible for the company's energy supply strategies and managing government affairs in Montana.

Bobbi L. Schroeppel Vice President - Customer Care, Communications and Human Resources

Bobbi L. Schroeppel holds the position of Vice President - Customer Care, Communications and Human Resources at NorthWestern Energy. Her role encompasses overseeing customer service, corporate communications, and human resources functions for the company.

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The key risks to NorthWestern Energy's (NWE) business include:

1. Regulatory and Legal Risks: As a regulated utility, NorthWestern Energy's profitability is heavily dependent on its ability to recover costs for providing energy and utility services and to earn a return on its capital investments. The company faces significant risks from adverse regulatory determinations, such as the denial of interim rates or rates that are not consistent with its expectations, particularly in Montana. Regulatory delays and uncertainties regarding rate recovery can directly impact cash flows and earnings. Compliance with environmental requirements and potential legislative changes also pose substantial risks.
2. Market Risks and Commodity Price Volatility: NorthWestern Energy is exposed to market risks, including fluctuations in interest rates and the volatility of energy commodity prices (e.g., electricity and natural gas). The company's reliance on market purchases for its electric and natural gas portfolios makes it vulnerable to these price changes and potential supply disruptions, which can significantly affect its financial performance and stability.
3. Operational Risks and Supply Chain Constraints: The company faces inherent operational risks, such as the potential for accidents, fires (especially in the western United States), system outages, and other hazards associated with electric and natural gas operations. Furthermore, supply chain constraints and inflationary pressures on the costs of products, services, and labor are impacting NorthWestern Energy's capital expenditures and operating activities, potentially hindering its ability to serve customers safely and reliably.

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1. Accelerated Adoption of Distributed Generation and Energy Storage:

As the costs of rooftop solar photovoltaic (PV) systems and grid-scale or residential battery storage continue to decline, there is an accelerating trend of customers (both residential and commercial) generating and storing their own electricity. This "behind-the-meter" generation reduces the amount of electricity customers purchase from NorthWestern Energy's grid, directly impacting the utility's sales volumes and traditional revenue model. This trend threatens the utility's core business of selling electricity from centralized power plants by empowering customers to achieve greater energy independence.

2. Increased Regulatory and Societal Pressure for Decarbonization:

NorthWestern Energy operates a generation portfolio that includes significant coal-fired assets. There is escalating regulatory, governmental, and societal pressure to accelerate the transition away from fossil fuels and achieve net-zero carbon emissions. This emerging threat could mandate the premature retirement of existing, long-lived generation assets, necessitate massive capital expenditures for new renewable energy projects and associated transmission infrastructure, and impose complex challenges related to maintaining grid reliability and ensuring cost recovery, fundamentally altering NWE's asset base and business strategy.

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NorthWestern Energy (NWE) operates primarily in the electricity and natural gas sectors across Montana, South Dakota, Nebraska, and Yellowstone National Park.

Electricity Market

• Montana: The total retail sales for electricity in Montana were approximately 15,504,699 megawatt-hours (MWh) in 2023. The average residential electricity rate in Montana was 12.50 cents per kilowatt-hour in 2025. NorthWestern Energy is Montana's largest electric utility, serving approximately 413,400 electric customers in the state and holding about 71% of the residential electricity market share in Montana.
• South Dakota: The total retail sales for electricity in South Dakota were approximately 13,505,999 MWh in 2023. The average state electricity rate was 13.18 cents per kilowatt-hour. NorthWestern Energy serves more than 64,700 retail electricity customers in 116 communities across 25 counties in South Dakota.
• Nebraska: NorthWestern Energy primarily provides natural gas services in Nebraska and does not have a significant presence in the electricity market due to Nebraska being the only state where all electricity providers are publicly-owned.

Natural Gas Market

• Montana: Customers in Montana consumed approximately 86.0 billion cubic feet (Bcf) of natural gas annually. For year-end 2024, retail natural gas supply requirements were approximately 22.4 Bcf. NorthWestern Energy is the largest natural gas provider in Montana, accounting for about 60% of all regulated sales and serving approximately 214,500 natural gas customers.
• South Dakota: For year-end 2023, NorthWestern Energy's supply deliveries (retail and transport) for natural gas were approximately 31.1 Bcf in South Dakota. The company provides natural gas to approximately 49,800 customers in 80 communities in eastern South Dakota.
• Nebraska: The market size of the Natural Gas Distribution industry in Nebraska is estimated at $18.3 billion in 2025. Nebraska's total natural gas consumption was 198.7 billion cubic feet in 2022. NorthWestern Energy provides natural gas to approximately 43,100 customers in four Nebraska communities, with annual supply deliveries of approximately 3.8 Bcf for year-end 2023.

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Expected Revenue Growth Drivers for NorthWestern Energy (NWE) Over the Next 2-3 Years

NorthWestern Energy (NWE) is anticipated to drive future revenue growth over the next two to three years through a combination of strategic initiatives and market dynamics. Key drivers include significant rate base investments, successful rate case outcomes, increasing customer and load growth (particularly from data centers), strategic acquisitions, and growth in electric transmission revenues.

1. Rate Base Growth and Capital Investments: NorthWestern Energy plans substantial capital expenditures to expand and modernize its infrastructure. The company has announced a $2.7 billion capital investment plan for 2025-2029, projected to support a 4% to 6% long-term rate base growth rate. This includes major projects such as the 175-megawatt natural gas-fired Yellowstone County Generating Station, which began serving customers in October 2024 and contributes to the rate base. Additionally, the company is investing in regional transmission projects, including its $21 million share in the North Plains Connector project. These investments are crucial for ensuring reliable service and are designed to be recovered through rate adjustments.
2. Rate Increases and Regulatory Outcomes: A significant driver of revenue growth for NWE comes from ongoing rate review activities across its service territories. The company has actively pursued and received approvals for rate increases in Montana, South Dakota, and Nebraska. For instance, NWE filed a Montana electric and natural gas rate review in July 2024, seeking substantial annual revenue increases for both electric and natural gas services. Similarly, natural gas rate reviews were filed in South Dakota and Nebraska, with the latter resulting in a settlement providing $23.9 million in new annual revenue, effective January 1, 2026. New base rates in Montana and South Dakota were primary contributors to increased net income and gross margin in 2024.
3. Customer and Load Growth, Including Data Centers: NorthWestern Energy anticipates revenue growth from an expanding customer base and increased energy demand. Analysts project NWE's revenue to rise by 5.5% annually over the next three years, largely fueled by the anticipated power demand from expanding data center activity in Montana and South Dakota. The electrification of industry and digital infrastructure is expected to provide a strong foundation for sustained revenue and earnings momentum. The company specifically targets 500 MW of data center demand by 2029, which is expected to exceed 10% of total EPS by 2028, with a pipeline exceeding 3 GW and new sites coming online as early as 2026.
4. Strategic Acquisitions and Mergers: NWE is expanding its market reach through strategic acquisitions. The company completed the acquisition of Energy West Montana's natural gas distribution system in July 2025, adding 33,000 customers. Furthermore, NorthWestern Energy entered an agreement to acquire Puget's 370-megawatt ownership in Colstrip at no cost, with a transfer date of December 31, 2025. Revenues from this acquisition are expected to offset associated operating and maintenance costs. The pending all-stock merger with Black Hills Corporation, valued at $3.6 billion, is also positioned to significantly expand NWE's market and diversify its customer and geographic footprint.
5. Electric Transmission Revenues: Growth in electric transmission revenues has been a consistent contributor to NWE's financial performance. Increased electric transmission revenues were cited as a key factor in the company's improved net income and consolidated gross margin in 2024 and the third quarter of both 2024 and 2025. NWE's plans to invest in regional transmission projects further underscore this as an ongoing area of revenue generation.

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Share Repurchases

• NorthWestern Energy Group reported $0.00 in quarterly stock buybacks for June 30, 2025, indicating no significant share repurchase activity within the recent past.
• No material share repurchase programs or authorizations were publicly disclosed within the 2020-2025 timeframe.

Share Issuance

• NorthWestern Energy reported net proceeds from the issuance of common stock of $277.0 million for the year ended December 31, 2022, and $196.2 million for the year ended December 31, 2021.
• The company does not expect to issue equity to fund its current $2.74 billion five-year capital plan (2025-2029); however, incremental investments in generation, transmission, or other strategic growth opportunities may require equity financing.
• An all-stock merger of equals with Black Hills Corporation was announced in August 2025, where each NorthWestern Energy share will receive 0.98 Black Hills shares.

Outbound Investments

• On July 1, 2025, NorthWestern Energy completed the acquisition of Energy West's natural gas distribution system in Montana, serving approximately 33,000 customers, for about $35.9 million in cash.
• In August 2025, NorthWestern Energy announced an agreement to combine in an all-stock merger of equals with Black Hills Corporation, creating a combined entity with a pro forma market capitalization of approximately $7.8 billion and an enterprise value of $15.4 billion.
• In October 2025, NorthWestern submitted a project for a 131 MW natural gas generating facility in Aberdeen, South Dakota, with anticipated costs of approximately $300 million, which is considered an incremental capital expenditure.

Capital Expenditures

• NorthWestern Energy has affirmed a $2.7 billion capital investment plan for the 2025-2029 period, aiming to support a 4% to 6% rate base growth from a 2024 base.
• Capital expenditures for 2024 amounted to $549.3 million, with a primary focus on significant investments in electric and natural gas infrastructure.
• The expected capital expenditures for 2025 are $531 million, concentrated on electric infrastructure (70.8%) and natural gas assets to enhance grid reliability, safety, infrastructure modernization, and integrate carbon-free resources.