NorthWestern Energy Group, Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
NWE$82.73+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0001993004-26-000050
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001993004-26-000057
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 142 previous paragraphs and 142 current paragraphs.
95 unchanged; 39 reworded; 7 added; 5 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 30 previous and 30 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Consolidated net income for the three months ended September 30, 2026 was $30.7 million as compared with $38.2 million for the same period in 2025. This decrease was primarily due to $6.1 million of net loss associated with our additional ownership interests in Colstrip Units 3 and 4, depreciation expense, and interest expense. These were offset in part by lower non-recoverable Montana electric supply costs, retail volumes, transmission revenue, and lower merger-related costs.
Current report
Consolidated net income for the three months ended September 30, 2026 was $30.7 million as compared with $38.2 million for the same period in 2025. This decrease was primarily due to $6.1 million of net loss associated with our additional ownership interests in Colstrip Units 3 and 4, depreciation expense, and interest expense. These were offset in part by lower non-recoverable Montana electric supply costs, retail volumes, transmission revenue, and lower merger-related costs.
Current report
Consolidated net income for the nine months ended September 30, 2026 was $119.2 million as compared with $136.4 million for the same period in 2025. This decrease was primarily due to $16.4 million of net loss associated with our additional ownership interests in Colstrip Units 3 and 4, retail volumes, Montana property tax collections, merger-related costs, depreciation expense, and interest expense. These were offset in part by new rates, lower non-recoverable Montana electric supply costs, and transmission revenues.
Current report
Consolidated gross margin for the nine months ended September 30, 2026 was $380.9 million as compared with $387.8 million in 2025, a decrease of $6.9 million, or 1.8 percent. This decrease was primarily due to negative gross margin associated with our additional ownership interests in Colstrip Units 3 and 4, retail volumes, Montana property tax collections, operating and maintenance costs, and depreciation expense. These were offset in part by new rates, lower non-recoverable Montana electric supply costs, and transmission revenues.
Current report
Electric retail volumes were impacted by favorable weather and customer growth in all jurisdictions.
Current report
Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. For the three months ended September 30, 2025, we recorded a decrease in pre-tax earnings of $2.3 million (10 percent of the PCCAM Base cost variance).
Current report
Electric retail volumes were impacted by unfavorable winter weather in all jurisdictions offset in part by favorable summer weather and customer growth in all jurisdictions.
Removed paragraphs (5)
Previous report
Consolidated net income for the three months ended June 30, 2026 was $25.0 million as compared with $21.2 million for the same period in 2025. This increase was primarily due to new rates and retail volumes. These were offset in part by operating, administrative, and general costs, including merger-related costs and costs associated with our additional ownership interests in Colstrip Units 3 and 4, depreciation expense, and interest expense.
Previous report
Consolidated net income for the three months ended June 30, 2026 was $25.0 million as compared with $21.2 million for the same period in 2025. This increase was primarily due to new rates and retail volumes. These were offset in part by operating, administrative, and general costs, including merger-related costs and costs associated with our additional ownership interests in Colstrip Units 3 and 4, depreciation expense, and interest expense.
Previous report
Consolidated net income for the six months ended June 30, 2026 was $88.5 million as compared with $98.2 million for the same period in 2025. This decrease was primarily due to retail volumes, Montana property tax collections, operating, administrative, and general costs, including merger-related costs and costs associated with our additional ownership interests in Colstrip Units 3 and 4, depreciation expense, and interest expense. These were offset in part by new rates, lower non-recoverable Montana electric supply costs, and transmission revenues.
Previous report
Consolidated gross margin for the six months ended June 30, 2026 was $266.9 million as compared with $260.9 million in 2025, an increase of $6.0 million, or 2.3 percent. This increase was primarily due to new rates, lower non-recoverable Montana electric supply costs, and transmission revenues. These were offset in part by retail volumes, Montana property tax collections, operating, administrative, and general costs, including merger-related costs and costs associated with our additional ownership interests in Colstrip Units 3 and 4, and depreciation expense.
Previous report
Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. For the three months ended June 30, 2025, we recorded a decrease in pre-tax earnings of $0.8 million (10 percent of the PCCAM Base cost variance).
Reworded paragraphs (39)
Previous wording
As you read this discussion and analysis, refer to our Condensed Consolidated Statements of Income, which present the results of our operations for the three and six months ended June 30, 2026 and 2025.
Current wording
As you read this discussion and analysis, refer to our Condensed Consolidated Statements of Income, which present the results of our operations for the three and nine months ended September 30, 2026 and 2025.
Previous wording
HOW WE PERFORMED AGAINST OUR SECOND QUARTER 2025 RESULTS
Current wording
HOW WE PERFORMED AGAINST OUR THIRD QUARTER 2025 RESULTS
Previous wording
In December 2025, the MPSC issued a final order approving our partial electric settlement agreement. The final order also suspended the 90/10 cost sharing mechanism of the Power Cost and Credit Adjustment Mechanism (PCCAM) on a temporary basis pending further review by the MPSC. Within this final order, the MPSC disallowed a portion of the capital costs related to the construction of Yellowstone County Generating Station (YCGS). As a result, in the fourth quarter of 2025 we recorded a $30.9 million non-cash charge for the regulatory disallowance.
Current wording
In December 2025, the MPSC issued a final order approving our partial electric settlement agreement. The final order also suspended the 90/10 cost sharing mechanism of the Power Cost and Credit Adjustment Mechanism (PCCAM) on a temporary basis pending further review by the MPSC. The ultimate resolution regarding the suspension of the PCCAM cost sharing mechanism will be addressed in a separate PCCAM docket and we anticipate resolution in the first half of 2027. Within this final order, the MPSC disallowed a portion of the capital costs related to the construction of Yellowstone County Generating Station (YCGS). As a result, in the fourth quarter of 2025 we recorded a $30.9 million non-cash charge for the regulatory disallowance.
Previous wording
In March 2026, we filed an application with the MPSC requesting approval of a Large New Load tariff rule (LNL Rule) to establish requirements and contract terms for providing electric service to bundled customers with new or expanded loads of five megawatts or greater, including data centers and other energy-intensive operations. This filing establishes a framework governing agreements between us and large new load customers and is intended to address the costs and operational considerations associated with serving those loads while protecting existing customers from cost shifting and other adverse impacts. Under this proposed framework, for the largest commitments, 50 megawatts or greater, we would file the executed Electric Service Agreement with the MPSC for review and approval before service begins. For customers with loads between 5 and 49 megawatts, the tariff's standardized process and mandatory protections apply, but individual agreements do not require case-specific MPSC approval filings. This application initiates a public regulatory proceeding that will include opportunities for review and public comment consistent with MPSC procedures.
Current wording
In March 2026, we filed an application with the MPSC requesting approval of a Large New Load tariff rule (LNL Rule) to establish requirements and contract terms for providing electric service to bundled customers with new or expanded loads of five megawatts or greater, including data centers and other energy-intensive operations. This filing establishes a framework governing agreements between us and large new load customers and is intended to address the costs and operational considerations associated with serving those loads while protecting existing customers from cost shifting and other adverse impacts. Under this proposed framework, for the largest commitments, 50 megawatts or greater, we would file the executed Electric Service Agreement with the MPSC for review and approval before service begins. For customers with loads between 5 and 49 megawatts, the tariff's standardized process and mandatory protections apply, but individual agreements do not require case-specific MPSC approval filings. This application initiates a public regulatory proceeding that will include opportunities for review and public comment consistent with MPSC procedures. Discovery has started in this proceeding, however, the MPSC has not set settlement or hearing dates.
Previous wording
As previously disclosed, we have signed development agreements with both Sabey Data Centers and Atlas Power Holdings LLC to provide electric supply services for data centers being developed in Montana. In April 2026, we signed a development agreement with Quantica Infrastructure to evaluate the transmission infrastructure and generation resources needed to support their proposed need. The combined energy service requirement associated with these development agreements is currently expected to be 150 megawatts beginning in late 2027, with growth of up to approximately 1,500 megawatts or more by 2030. We are working with each of these parties to execute electric service agreements.
Current wording
As previously disclosed, we have signed development agreements with Atlas Power Holdings LLC (Atlas) and Quantica Infrastructure (Quantica) to provide electric supply services for data centers being developed in Montana. The development agreements require us to evaluate the transmission infrastructure and generation resources needed to support their proposed need. Our previously disclosed development agreement with Sabey Data Centers has been terminated. The combined energy service requirement associated with our remaining development agreements is currently expected to be 75 megawatts beginning in late 2027, with growth of up to approximately 1,250 megawatts or more by 2030. We are working with Atlas and Quantica to execute electric service agreements.
Previous wording
During the three and six months ended June 30, 2026, power prices in the Pacific Northwest associated with these designated power sales contracts included within our PCCAM tariff waiver were insufficient to contribute to the recovery of the operating and maintenance expenses associated with the Avista Interests.
Current wording
During the three and nine months ended September 30, 2026, power prices in the Pacific Northwest associated with these designated power sales contracts included within our PCCAM tariff waiver were insufficient to contribute to the recovery of the operating and maintenance expenses associated with the Avista Interests.
Previous wording
Puget Interests - The 370 megawatts of generation capacity from Colstrip Units 3 and 4 acquired from Puget (Puget Interests) on January 1, 2026, increases our ownership share of the facility to 55 percent and provides an increase in voting share in determining strategic direction and investment decisions at the facility. Unlike the Avista Interests, we do not currently need this capacity to serve existing customers in Montana. As such, the Puget Interests are held by our FERC regulated subsidiary to isolate the costs associated with this acquired interest from our Montana retail customers. While we expect our future opportunity to serve growing customer demand, including large-load customers, may be supported by this resource, in October 2025, we signed a contract to sell the dispatchable capacity and associated energy from the Puget Interests beginning January 1, 2026, through late 2027. Revenues from this agreement are expected to largely offset the estimated $30.0 million of annual incremental operating and maintenance costs associated with the Puget Interests. In addition, in October 2025, we submitted a request to the FERC for approval of cost-based rates for our subsidiary that will own the Puget Interests. In February 2026, the FERC approved both the cost-based rates and the contract rates retroactive to January 1, 2026. In March 2026, two MPSC commissioners, in their individual capacity, filed a motion with the FERC requesting a rehearing that largely reiterated arguments previously rejected by the FERC. The FERC denied this motion by operation of law. In June 2026, the two MPSC commissioners appealed the decision to the Ninth Circuit. We have intervened in the case.
Current wording
Puget Interests - The 370 megawatts of generation capacity from Colstrip Units 3 and 4 acquired from Puget (Puget Interests) on January 1, 2026, increases our ownership share of the facility to 55 percent and provides an increase in voting share in determining strategic direction and investment decisions at the facility. Unlike the Avista Interests, we do not currently need this capacity to serve existing customers in Montana. As such, the Puget Interests are held by our FERC regulated subsidiary to isolate the costs associated with this acquired interest from our Montana retail customers. While we expect our future opportunity to serve growing customer demand, including large-load customers, may be supported by this resource, in October 2025, we signed a contract to sell the dispatchable capacity and associated energy from the Puget Interests beginning January 1, 2026, through late 2027. Revenues from this agreement are expected to largely offset the estimated $30.0 million of annual incremental operating and maintenance costs associated with the Puget Interests. In addition, in October 2025, we submitted a request to the FERC for approval of cost-based rates for our subsidiary that will own the Puget Interests. In February 2026, the FERC approved both the cost-based rates and the contract rates retroactive to January 1, 2026. In March 2026, two MPSC commissioners, in their individual capacity, filed a motion with the FERC requesting a rehearing that largely reiterated arguments previously rejected by the FERC. The FERC denied this motion by operation of law. In June 2026, the two MPSC commissioners appealed the decision to the Ninth Circuit. The Court granted our intervention. The Court further granted FERC's motion to hold the case in abeyance until December 11, 2026.
Previous wording
The Southwest Power Pool (SPP) has recently updated its resource accreditation and planning reserve margin (PRM) requirements in response to growing reliability concerns. As a result, SPP is requiring additional accredited capacity by 2030 to meet the updated PRM targets. In October 2025, we submitted a project with the SPP under their Expedited Resource Adequacy Study program for the construction of a 131 MW natural gas generating facility located in Aberdeen, South Dakota, to meet regional capacity needs by 2030. Anticipated costs for this project are approximately $300.0 million. As of June 30, 2026, we have recorded $42.3 million within Other noncurrent assets on the Condensed Consolidated Balance Sheets for non-refundable milestone payments to secure the turbines that will be used at this facility.
Current wording
The Southwest Power Pool (SPP) has recently updated its resource accreditation and planning reserve margin (PRM) requirements in response to growing reliability concerns. As a result, SPP is requiring additional accredited capacity by 2030 to meet the updated PRM targets. In October 2025, we submitted a project with the SPP under their Expedited Resource Adequacy Study program for the construction of a 131 MW natural gas generating facility located in Aberdeen, South Dakota, which has been named the Hub City Energy Park generation project, to meet regional capacity needs by 2030. Anticipated costs for this project are approximately $470.0 million. As of September 30, 2026, we have recorded $42.6 million within Other noncurrent assets on the Condensed Consolidated Balance Sheets for non-refundable milestone payments to secure the turbines that will be used at this facility.
Previous wording
The South Dakota Legislature approved Senate Bill 36, and the Governor signed this bill into law in March 2026. It precludes common law strict liability claims for utility operations alleged to have caused wildfire-related damages; establishes a statutory standard of care, supplanting common law causes of action and other theories of recovery; and creates a rebuttable presumption that a valid and current wildfire mitigation plan is reasonable preparation for, and mitigation of, wildfire risk. The legislation also defines the availability of damages by allowing noneconomic personal injury damages only when there is bodily injury and punitive damages only when an injured party proves by clear and convincing evidence that a qualified utility acted with willful and wanton misconduct and the qualified utility's willful and wanton misconduct was the actual and proximate cause of damages to the plaintiff. We anticipate filing our wildfire mitigation plan with the SDPUC in the third quarter of 2026.
Current wording
The South Dakota Legislature approved Senate Bill 36, and the Governor signed this bill into law in March 2026. It precludes common law strict liability claims for utility operations alleged to have caused wildfire-related damages; establishes a statutory standard of care, supplanting common law causes of action and other theories of recovery; and creates a rebuttable presumption that a valid and current wildfire mitigation plan is reasonable preparation for, and mitigation of, wildfire risk. The legislation also defines the availability of damages by allowing noneconomic personal injury damages only when there is bodily injury and punitive damages only when an injured party proves by clear and convincing evidence that a qualified utility acted with willful and wanton misconduct and the qualified utility's willful and wanton misconduct was the actual and proximate cause of damages to the plaintiff. In July 2026, we filed our wildfire mitigation plan with the SDPUC. It was duly published completing our compliance obligation.
Previous wording
Consolidated gross margin for the three months ended June 30, 2026 was $106.6 million as compared with $94.5 million in 2025, an increase of $12.1 million, or 12.8 percent. This increase was primarily due to new rates and retail volumes. These were offset in part by higher operating, administrative, and general costs, including merger-related costs and costs associated with our additional ownership interests in Colstrip Units 3 and 4, and depreciation expense.
Current wording
Consolidated gross margin for the three months ended September 30, 2026 was $114.1 million as compared with $127.0 million in 2025, a decrease of $12.9 million, or 10.2 percent. This decrease was primarily due to negative margin associated with our additional ownership interests in Colstrip Units 3 and 4 and depreciation expense. These were offset in part by lower non-recoverable Montana electric supply costs, retail volumes, and transmission revenue.
Previous wording
Consolidated utility margin for the three months ended June 30, 2026 was $302.8 million as compared with $267.4 million for the same period in 2025, an increase of $35.4 million, or 13.2 percent. Primary components of the change in utility margin include the following (in millions):
Current wording
Consolidated utility margin for the three months ended September 30, 2026 was $316.5 million as compared with $300.0 million for the same period in 2025, an increase of $16.5 million, or 5.5 percent. Primary components of the change in utility margin include the following (in millions):
Previous wording
Electric retail volumes were impacted by favorable weather in South Dakota and customer growth in all jurisdictions, partly offset by unfavorable weather in Montana. Natural gas retail volumes were impacted by favorable weather in Montana and South Dakota, the acquisition of the Energy West operations in July 2025, and customer growth, partly offset by unfavorable weather in Nebraska.
Current wording
Electric retail volumes were impacted by favorable weather and customer growth in all jurisdictions. Natural gas retail volumes were impacted by favorable weather in Montana and customer growth, partly offset by unfavorable weather in South Dakota and Nebraska.
Previous wording
Under the PCCAM, net supply costs higher or lower than the PCCAM base rate (PCCAM Base) (excluding qualifying facility (QF) costs) were allocated 90 percent to Montana customers and 10 percent to shareholders. Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. For the three months ended June 30, 2025, we recorded a decrease in pre-tax earnings of $0.8 million (10 percent of the PCCAM Base cost variance).
Current wording
Under the PCCAM, net supply costs higher or lower than the PCCAM base rate (PCCAM Base) (excluding qualifying facility (QF) costs) were allocated 90 percent to Montana customers and 10 percent to shareholders. Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. For the three months ended September 30, 2025, we recorded a decrease in pre-tax earnings of $2.3 million (10 percent of the PCCAM Base cost variance).
Previous wording
Consolidated operating expenses, excluding fuel, purchased supply and direct transmission expense, were $238.6 million for the three months ended June 30, 2026, as compared with $206.7 million for the three months ended June 30, 2025. Primary components of the change include the following (in millions):
Current wording
Consolidated operating expenses, excluding fuel, purchased supply and direct transmission expense, were $241.9 million for the three months ended September 30, 2026, as compared with $219.7 million for the three months ended September 30, 2025. Primary components of the change include the following (in millions):
Previous wording
Consolidated operating income for the three months ended June 30, 2026 was $64.2 million as compared with $60.8 million in the same period of 2025. This increase was primarily due to new rates and retail volumes. These were offset in part by operating, administrative, and general costs, including merger-related costs and costs associated with our additional ownership interests in Colstrip Units 3 and 4, and depreciation expense.
Current wording
Consolidated operating income for the three months ended September 30, 2026 was $74.6 million as compared with $80.3 million in the same period of 2025. This decrease was primarily due to operating losses associated with our additional ownership interests in Colstrip Units 3 and 4 and depreciation expense. These were offset in part by lower non-recoverable Montana electric supply costs, retail volumes, transmission revenue, and lower merger-related costs.
Previous wording
Consolidated interest expense was $40.3 million for the three months ended June 30, 2026 as compared with $36.3 million for the same period of 2025. This increase was due to higher borrowings and interest rates partly offset by higher capitalization of Allowance for Funds Used During Construction (AFUDC).
Current wording
Consolidated interest expense was $42.2 million for the three months ended September 30, 2026 as compared with $38.4 million for the same period of 2025. This increase was due to higher borrowings and interest rates offset in part by higher capitalization of Allowance for Funds Used During Construction (AFUDC).
Previous wording
Consolidated other income was $4.5 million for the three months ended June 30, 2026 as compared with $0.1 million for the same period of 2025. This increase was primarily due to an increase in the value of deferred shares held in trust for deferred compensation, a prior year $1.0 million expense accrual related to an estimated penalty for the previously disclosed Community Renewable Energy Project (CREP) informed by a MPSC ruling, and higher capitalization of AFUDC.
Current wording
Consolidated other income was $3.0 million for the three months ended September 30, 2026 as compared with $5.1 million for the same period of 2025. This decrease was primarily due to a decrease in the value of deferred shares held in trust for deferred compensation offset in part by higher capitalization of AFUDC.
Previous wording
Consolidated income tax expense was $3.5 million for the three months ended June 30, 2026 as compared to $3.4 million for the same period of 2025. Our effective tax rate for the three months ended June 30, 2026 was 12.2% as compared with 13.7% for the same period in 2025.
Current wording
Consolidated income tax expense was $4.7 million for the three months ended September 30, 2026 as compared to $8.8 million for the same period of 2025. Our effective tax rate for the three months ended September 30, 2026 was 13.2% as compared with 18.7% for the same period in 2025.
Previous wording
Consolidated utility margin for the six months ended June 30, 2026 was $654.8 million as compared with $595.9 million for the same period in 2025, an increase of $58.9 million, or 9.9 percent. Primary components of the change in utility margin include the following (in millions):
Current wording
Consolidated utility margin for the nine months ended September 30, 2026 was $971.3 million as compared with $895.9 million for the same period in 2025, an increase of $75.4 million, or 8.4 percent. Primary components of the change in utility margin include the following (in millions):
Previous wording
Electric retail volumes were impacted by unfavorable weather in all jurisdictions partly offset by customer growth in all jurisdictions. Natural gas retail volumes were impacted by unfavorable weather in all jurisdictions, partly offset by customer growth in all jurisdictions and the acquisition of the Energy West operations in July 2025.
Current wording
Electric retail volumes were impacted by unfavorable winter weather in all jurisdictions offset in part by favorable summer weather and customer growth in all jurisdictions. Natural gas retail volumes were impacted by unfavorable weather in all jurisdictions, partly offset by customer growth in all jurisdictions and the acquisition of the Energy West operations in July 2025.
Previous wording
Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. For the six months ended June 30, 2026, we recorded a decrease in pre-tax earnings of $0.7 million (10 percent of the PCCAM Base cost variance). For the six months ended June 30, 2025, we recorded a decrease in pre-tax earnings of $3.5 million (10 percent of the PCCAM Base cost variance).
Current wording
Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. For the nine months ended September 30, 2026, we recorded a decrease in pre-tax earnings of $0.7 million (10 percent of the PCCAM Base cost variance). For the nine months ended September 30, 2025, we recorded a decrease in pre-tax earnings of $5.9 million (10 percent of the PCCAM Base cost variance).
Previous wording
Consolidated operating expenses, excluding fuel, purchased supply and direct transmission expense, were $476.4 million for the six months ended June 30, 2026, as compared with $410.3 million for the six months ended June 30, 2025. Primary components of the change include the following (in millions):
Current wording
Consolidated operating expenses, excluding fuel, purchased supply and direct transmission expense, were $718.4 million for the nine months ended September 30, 2026, as compared with $630.1 million for the nine months ended September 30, 2025. Primary components of the change include the following (in millions):
Previous wording
Consolidated operating income for the six months ended June 30, 2026 was $178.4 million as compared with $185.5 million in the same period of 2025. This decrease was primarily due to retail volumes, Montana property tax collections, operating, administrative, and general costs, including merger-related costs and costs associated with our additional ownership interests in Colstrip Units 3 and 4, and depreciation expense. These were offset in part by new rates, lower non-recoverable Montana electric supply costs, and transmission revenues.
Current wording
Consolidated operating income for the nine months ended September 30, 2026 was $253.0 million as compared with $265.8 million in the same period of 2025. This decrease was primarily due to operating losses associated with our additional ownership interests in Colstrip Units 3 and 4, retail volumes, Montana property tax collections, merger-related costs, and depreciation expense. These were offset in part by new rates, lower non-recoverable Montana electric supply costs, and transmission revenues.
Previous wording
Consolidated interest expense was $80.2 million for the six months ended June 30, 2026 as compared with $72.8 million for the same period of 2025. This increase was due to higher borrowings and interest rates partly offset by higher capitalization of AFUDC.
Current wording
Consolidated interest expense was $122.4 million for the nine months ended September 30, 2026 as compared with $111.1 million for the same period of 2025. This increase was due to higher borrowings and interest rates offset in part by higher capitalization of AFUDC.
Previous wording
Consolidated other income was $7.6 million for the six months ended June 30, 2026 as compared to $4.0 million during the same period of 2025. This increase was primarily due to an increase in the value of deferred shares held in trust for deferred compensation, a prior year $1.0 million expense accrual related to an estimated penalty for the previously disclosed CREP informed by a MPSC ruling, and higher capitalization of AFUDC, partly offset by higher non-service component pension expense.
Current wording
Consolidated other income was $10.6 million for the nine months ended September 30, 2026 as compared to $9.1 million during the same period of 2025. This increase was primarily due to a prior year $1.0 million expense related to an estimated penalty for the previously disclosed CREP informed by a MPSC ruling, and higher capitalization of AFUDC, offset in part by higher non-service component pension expense and a decrease in the value of deferred shares held in trust for deferred compensation.
Previous wording
Consolidated income tax expense for the six months ended June 30, 2026 was $17.3 million as compared to $18.6 million in the same period of 2025. Our effective tax rate for the six months ended June 30, 2026 was 16.3% as compared with 15.9% for the same period in 2025.
Current wording
Consolidated income tax expense for the nine months ended September 30, 2026 was $21.9 million as compared to $27.4 million in the same period of 2025. Our effective tax rate for the nine months ended September 30, 2026 was 15.5% as compared with 16.7% for the same period in 2025.
Previous wording
The following summarizes the components of the changes in electric utility margin for the six months ended June 30, 2026 and 2025 (in millions):
Current wording
The following summarizes the components of the changes in electric utility margin for the nine months ended September 30, 2026 and 2025 (in millions):
Previous wording
Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. For the six months ended June 30, 2026, we recorded a decrease in pre-tax earnings of $0.7 million (10 percent of the PCCAM Base cost variance). For the six months ended June 30, 2025, we recorded a decrease in pre-tax earnings of $3.5 million (10 percent of the PCCAM Base cost variance).
Current wording
Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. For the nine months ended September 30, 2026, we recorded a decrease in pre-tax earnings of $0.7 million (10 percent of the PCCAM Base cost variance). For the nine months ended September 30, 2025, we recorded a decrease in pre-tax earnings of $5.9 million (10 percent of the PCCAM Base cost variance).
Previous wording
Natural gas retail volumes were impacted by favorable weather in Montana and South Dakota, the acquisition of the Energy West operations in July 2025, and customer growth, partly offset by unfavorable weather in Nebraska.
Current wording
Natural gas retail volumes were impacted by favorable weather in Montana and customer growth, partly offset by unfavorable weather in South Dakota and Nebraska.
Previous wording
The following summarizes the components of the changes in natural gas utility margin for the six months ended June 30, 2026 and 2025:
Current wording
The following summarizes the components of the changes in natural gas utility margin for the nine months ended September 30, 2026 and 2025:
Previous wording
As of June 30, 2026, our total net liquidity was approximately $339.2 million, including $4.2 million of cash and cash equivalents and $335.0 million of revolving credit facility availability with no letters of credit outstanding.
Current wording
As of September 30, 2026, our total net liquidity was approximately $349.5 million, including $6.5 million of cash and cash equivalents and $343.0 million of revolving credit facility availability with no letters of credit outstanding.
Previous wording
As of June 30, 2026, cash, cash equivalents, and restricted cash were $25.1 million as compared with $30.7 million as of December 31, 2025 and $26.5 million as of June 30, 2025. Cash provided by operating activities totaled $233.2 million for the six months ended June 30, 2026 as compared with $211.6 million during the six months ended June 30, 2025. The changes in cash flows from operating activities generally follow the results of operations, as discussed above in the consolidated results of operations for the six months ended June 30, 2026, and are affected by changes in working capital. The increase in cash provided by working capital is primarily due to a decrease in our net cash outflows for energy supply costs, as shown in the table below.
Current wording
As of September 30, 2026, cash, cash equivalents, and restricted cash were $26.1 million as compared with $30.7 million as of December 31, 2025 and $30.5 million as of September 30, 2025. Cash provided by operating activities totaled $364.1 million for the nine months ended September 30, 2026 as compared with $338.3 million during the nine months ended September 30, 2025. The changes in cash flows from operating activities generally follow the results of operations, as discussed above in the consolidated results of operations for the nine months ended September 30, 2026, and are affected by changes in working capital. The increase in cash provided by working capital is primarily due to an increase in our net cash inflows for energy supply costs, as shown in the table below.
Previous wording
Cash used in investing activities totaled $305.8 million during the six months ended June 30, 2026, as compared with $226.8 million during the six months ended June 30, 2025. Plant additions during the first six months of 2026 include maintenance additions of approximately $218.7 million and capacity related capital expenditures of $86.1 million. Plant additions during the first six months of 2025 included maintenance additions of approximately $149.4 million and capacity related capital expenditures of approximately $71.6 million.
Current wording
Cash used in investing activities totaled $466.7 million during the nine months ended September 30, 2026, as compared with $418.5 million during the nine months ended September 30, 2025. Plant additions during the first nine months of 2026 include maintenance additions of approximately $270.0 million and capacity related capital expenditures of $194.0 million. Plant additions during the first nine months of 2025 included maintenance additions of approximately $261.3 million and capacity related capital expenditures of approximately $113.2 million.
Previous wording
of South Dakota First Mortgage bonds, and repayment of $50.0 million of the NWE Group Term Loan. During the six months ended June 30, 2025, cash provided by financing activities reflects proceeds from the issuance of long-term debt of $500.0 million, partly offset by repayment of $300.0 million of Montana and South Dakota First Mortgage bonds, net repayments under our revolving lines of credit of $103.0 million and payment of dividends of $80.7 million.
Current wording
Cash provided by financing activities totaled $98.0 million during the nine months ended September 30, 2026, as compared with $81.7 million during the nine months ended September 30, 2025. During the nine months ended September 30, 2026, cash provided by financing activities reflects proceeds from the issuance of debt of $375.0 million and net issuances under our revolving lines of credit of $3.0 million, partly offset by payment of dividends of $123.2 million, repayment of $105.0 million of South Dakota First Mortgage bonds, and repayment of $50.0 million of the NWE Group Term Loan. During the nine months ended September 30, 2025, cash provided by financing activities reflects proceeds from the issuance of long-term debt of $500.0 million and short-term borrowings of $50.0 million, partly offset by repayment of $300.0 million of Montana and South Dakota First Mortgage bonds, payment of dividends of $121.0 million, and net repayments under our revolving lines of credit of $44.0 million.
Previous wording
For further information on our credit facilities, see Note 12 - Short-Term Borrowings and Credit Arrangements in the NorthWestern Energy Group Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
For further information on our recent credit facility activity, see Note 6 - Financing Activities to the Condensed Consolidated Financial Statements included herein. For further information on our credit facilities, see Note 12 - Short-Term Borrowings and Credit Arrangements in the NorthWestern Energy Group Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
As of June 30, 2026 and 2025, the outstanding balances of our credit facilities were $290.0 million and $310.0 million, respectively. As of July 24, 2026, the availability under our credit facilities was approximately $316.0 million, and there were no letters of credit outstanding.
Current wording
As of September 30, 2026 and 2025, the outstanding balances of our credit facilities were $407.0 million and $369.0 million, respectively. As of October 30, 2026, the availability under our credit facilities was approximately $352.0 million, and there were no letters of credit outstanding.
Previous wording
(1)Represents cash payments for long-term debt and excludes $12.5 million of debt discounts and debt issuance costs, net.
Current wording
(1)Represents cash payments for long-term debt and excludes $12.1 million of debt discounts and debt issuance costs, net.
Previous wording
(3)One QF requires us to purchase minimum amounts of energy at a price of $130 per MWH through 2028. Ourestimated gross contractual obligation related to this QF is approximately $140.9 million. A portion of the costs incurred to purchase this energy is recoverable through rates authorized by the MPSC, totaling approximately $129.7 million.
Current wording
(3)One QF requires us to purchase minimum amounts of energy at a price of $130 per MWH through 2028. Ourestimated gross contractual obligation related to this QF is approximately $127.0 million. A portion of the costs incurred to purchase this energy is recoverable through rates authorized by the MPSC, totaling approximately $118.1 million.
Previous wording
(5)Contractual interest payments include our revolving credit facilities, which have a variable interest rate. We have assumed an average interest rate of 4.99 percent on the outstanding balance through maturity of the facilities.
Current wording
(5)Contractual interest payments include our revolving credit facilities, which have a variable interest rate. We have assumed an average interest rate of 5.25 percent on the outstanding balance through maturity of the facilities.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(1) In order to present the total change in labor and benefits, we have included the change in the non-service cost component of our pension and other postretirement benefits, which is recorded within other income on our Condensed Consolidated Statements of Income. This change is offset within this table as it does not affect our operating expenses.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Electric retail volumes were impacted by favorable weather in South Dakota and customer growth in all jurisdictions, partly offset by unfavorable weather in Montana.
Previous report — wording carried elsewhere
Electric retail volumes were impacted by unfavorable weather in all jurisdictions partly offset by customer growth in all jurisdictions.
Previous report — wording carried elsewhere
Cash provided by financing activities totaled $67.0 million during the six months ended June 30, 2026, as compared with $12.7 million during the six months ended June 30, 2025. During the six months ended June 30, 2026, cash provided by financing activities reflects proceeds from the issuance of debt of $375.0 million, partly offset by net repayments under our revolving lines of credit of $114.0 million, payment of dividends of $82.1 million, repayment of $60.0 million