Nebraska regulators have signed off on a major utility merger involving two natural gas providers. The Nebraska Public Service Commission has approved the proposed merger between Black Hills Corp. and NorthWestern Energy Group, Inc..
Nebraska is now the first state to approve the deal, though regulators in Montana, South Dakota and federal agencies still must weigh in before the merger can move forward. “The Commission undertook a thorough and careful review of this request to ensure it serves the public interest,” says Commission Chair Tim Schram.
As part of the merger, customer rate hikes for Black Hills customers will be frozen until May of 2028. “We believe this merger will create a stronger, more resilient company, better positioned to safely, reliably and cost-effectively meet customers’ evolving energy needs,” says Black Hills Energy CEO and President Linn Evans. “By joining forces, we will have the added scale to make us a financially stronger, more resilient utility better equipped to meet the challenges of a rapidly changing energy landscape.”
The Commission says the merger is not expected to affect day-to-day customer services like billing, meter reading or emergency response for the companies’ combined 350,000 Nebraska customers.
The merger is expected to close later this year, subject to additional approvals from Public Service Commissions in Montana and South Dakota as well as the Federal Energy Regulatory Commission.