Northwestern Corporation (NWE): Business Model Canvas [Jan-2025 Mis à jour]

Northwestern Corporation (NWE) est un fournisseur d'énergie pivot transformant le paysage de puissance du Montana, du Dakota du Sud et du Nebraska grâce à un modèle commercial innovant et stratégique. En mélangeant la production d'électricité traditionnelle avec des technologies renouvelables de pointe, cette entreprise dynamique des services publics aborde les défis du marché complexes tout en offrant des solutions de puissance fiables et durables à divers segments de clients. Leur toile complète du modèle commercial révèle une approche sophistiquée qui équilibre l'innovation technologique, la conformité réglementaire et le service axé sur la communauté, faisant de la NWE une étude de cas convaincante dans la gestion moderne des services publics et la prestation d'énergie stratégique.

Northwestern Corporation (NWE) - Modèle d'entreprise: partenariats clés

Fabricants d'équipements électriques

Northwestern Corporation s'associe aux principaux fabricants d'équipements pour maintenir les infrastructures de grille. Les principaux fournisseurs d'équipement comprennent:

Fabricant	Type d'équipement	Valeur du contrat annuel
Électrique générale	Transformateurs	14,3 millions de dollars
Siemens	Systèmes de gestion de la grille	9,7 millions de dollars
ABB LTD	Équipement de transmission	11,2 millions de dollars

Fournisseurs régionaux d'infrastructures de transmission et de distribution

Northwestern maintient des partenariats stratégiques avec les fournisseurs d'infrastructures régionales:

• Montana Electric Transmission Company
• Western Grid Development LLC
• Consortium Rocky Mountain Power Grid

Agences de réglementation des États et fédérales

Les détails du partenariat réglementaire comprennent:

Agence	Juridiction	Interactions de conformité
Commission de la fonction publique du Montana	État réglementaire	38 interactions formelles en 2023
Commission de réglementation de l'énergie fédérale	Surveillance fédérale	24 rapports de conformité soumis

Développeurs de technologies d'énergie renouvelable

Investissements de partenariat en énergies renouvelables:

Partenaire technologique	Focus technologique	Montant d'investissement
Premier solaire	Systèmes photovoltaïques	6,5 millions de dollars
Vestas Wind Systems	Technologie d'éoliennes	8,2 millions de dollars

Gouvernement local et intervenants communautaires

Métriques d'engagement du partenariat communautaire:

• Investissement total de la communauté: 3,1 millions de dollars en 2023
• Nombre de partenariats municipaux locaux: 17
• Projets d'infrastructure communautaire: 12

Northwestern Corporation (NWE) - Modèle d'entreprise: activités clés

Génération et distribution d'énergie électrique

Northwestern Corporation exploite 11 installations hydroélectriques d'une capacité de génération totale de 208 mégawatts. Le portefeuille de génération électrique de la société comprend:

Type de génération	Capacité (MW)	Pourcentage de portefeuille
Hydro-électrique	208	37.5%
Gaz naturel	280	50.4%
Charbon	68	12.1%

Maintenance des infrastructures et gestion de la grille

Northwestern maintient 16 445 miles de lignes de transmission et de distribution électriques à travers le Montana, le Dakota du Sud et le Nebraska.

• Investissement annuel de maintenance des infrastructures: 87,3 millions de dollars
• Indice de fiabilité de la grille: 99,95%
• Couverture de déploiement de la technologie du réseau intelligent: 76% du territoire de service

Développement du projet d'énergie renouvelable

Projets d'énergie renouvelable à partir de 2024:

Type renouvelable	Capacité installée (MW)	Investissement projeté
Vent	122	215 millions de dollars
Solaire	45	82 millions de dollars

Programmes de service à la clientèle et d'efficacité énergétique

Métriques du service client:

• Comptes clients totaux: 743 900
• Temps de réponse moyen pour les demandes de service: 2,3 heures
• Participation du programme d'efficacité énergétique: 42% des clients

Conformité réglementaire et gestion environnementale

Conformité et investissements environnementaux:

• Dépenses annuelles de conformité environnementale: 42,6 millions de dollars
• Cible de réduction des émissions de carbone: 40% d'ici 2030
• Personnel de gestion de l'environnement: 87 employés à temps plein

Northwestern Corporation (NWE) - Modèle d'entreprise: Ressources clés

Installations de production d'électricité

Northwestern Energy possède et exploite plusieurs installations de production dans le Montana, le Dakota du Sud et le Nebraska:

Type de génération	Capacité (MW)	Nombre d'installations
Hydro-électrique	633	11
Gaz naturel	377	4
Vent	63	3

Infrastructure de transmission et de distribution

Northwestern maintient une infrastructure énergétique étendue:

• Lignes de transmission: 4 700 miles
• Lignes de distribution: 15 400 miles
• Soules: 204
• Zone de service totale: 30 000 miles carrés

Main-d'œuvre technique qualifiée

Total des employés: 1 280 en 2023

Catégorie des employés	Nombre d'employés
Opérations techniques	580
Ingénierie	210
Service client	290
Gestion	200

Technologies avancées de gestion de l'énergie

Investissements technologiques en 2023: 42,3 millions de dollars

• Infrastructure de grille intelligente
• Systèmes de mesure avancés
• Technologies d'intégration des énergies renouvelables

Capital financier

Ressources financières au quatrième trimestre 2023:

Métrique financière	Montant
Actif total	4,2 milliards de dollars
Total des capitaux propres	1,8 milliard de dollars
Dépenses en capital	280 millions de dollars

Northwestern Corporation (NWE) - Modèle d'entreprise: propositions de valeur

Alimentation électrique fiable

Northwestern Energy dessert 382 700 clients électriques du Montana, du Dakota du Sud et du Nebraska. Total Electric Utility Usine en service: 2,06 milliards de dollars en 2022.

État	Clients électriques	Territoire de service
Montana	223,400	44 000 milles carrés
Dakota du Sud	63,400	22 000 miles carrés
Nebraska	95,900	18 000 miles carrés

Portefeuille d'énergie durable

Mix de production d'énergie renouvelable:

• Hydroélectrique: 43% de la capacité de production
• Vent: 24% de la capacité de production
• Solaire: 7% de la capacité de production
• Gaz naturel: 26% de la capacité de production

Taux d'électricité compétitifs

Taux d'électricité résidentiel moyen: 0,11 $ par kilowattheure, qui est 8,3% inférieur à la moyenne nationale.

Segment de clientèle	Taux moyen (¢ / kWh)
Résidentiel	11.0
Commercial	9.2
Industriel	7.5

Modernisation de la grille

Investissement annuel dans les infrastructures de grille: 180 millions de dollars en 2022. Déploiement de compteur intelligent: 78% de la clientèle totale.

Soutien économique local

Contribution économique annuelle: 237 millions de dollars dans tous les territoires de service. Total des paiements d'impôts locaux: 52,3 millions de dollars en 2022.

Northwestern Corporation (NWE) - Modèle d'entreprise: relations clients

Assistance directe du service client

Northwestern Corporation maintient une équipe de service client dédiée avec les mesures suivantes:

Canal de support	Volume de contact annuel	Temps de réponse moyen
Support téléphonique	342 567 appels	7,2 minutes
Assistance par e-mail	128 945 e-mails	24 heures
Chat en direct	87 233 interactions	3,5 minutes

Plateformes de gestion de compte en ligne

Statistiques d'engagement numérique pour Northwestern Corporation:

• Utilisateurs totaux de compte en ligne: 276 542
• Téléchargements d'applications mobiles: 184 376
• Taux de paiement des factures en ligne: 68,3%

Services de consultation de l'efficacité énergétique

Type de service	Consultations annuelles	Taux de participation des clients
Audit d'énergie résidentielle	12,345	4.2%
Évaluation commerciale de l'énergie	2,876	6.7%

Programmes de sensibilisation et d'éducation communautaires

Métriques d'engagement communautaire:

• Événements communautaires annuels: 87
• Participants à l'atelier éducatif: 15 234
• Programme d'éducation à l'énergie scolaire Reach: 42 écoles

Communication proactive lors des perturbations du service

Canal de communication	Vitesse de notification	Client portée
Alertes texte	Dans les 15 minutes	78% de la clientèle
Mises à jour des médias sociaux	En temps réel	62 345 abonnés
Notifications téléphoniques automatisées	Dans les 30 minutes	92% des clients touchés

Northwestern Corporation (NWE) - Modèle d'entreprise: canaux

Centres de service client physique

Northwestern Corporation conserve 7 centres de service client physique à travers le Montana, le Dakota du Sud et le Nebraska en 2024.

Emplacement	État	Heures de service
Butte	Montana	8h00 - 17h00
Sioux tombe	Dakota du Sud	8h00 - 17h00
Lincoln	Nebraska	8h00 - 17h00

Portail Web en ligne

Le portail Web en ligne de Northwestern Energy dessert environ 362 000 clients électriques et 217 000 clients de gaz naturel en 2024.

• Visiteurs de portail Web unique mensuel: 124 500
• Fonctionnalités de gestion des comptes en ligne disponibles
• Suivi de la consommation d'énergie numérique

Applications de smartphone mobile

Northwestern Corporation a lancé son application mobile avec 89 000 utilisateurs mensuels actifs en 2024.

Fonctionnalité d'application	Disponibilité
Paiement de facture	iOS / Android
Reportage des panneaux	iOS / Android
Suivi de la consommation d'énergie	iOS / Android

Téléphone Assistance à la clientèle

Northwestern Corporation exploite un centre de support client centralisé avec 214 000 appels clients chaque année en 2024.

• Temps d'attente d'appel moyen: 3,2 minutes
• Ligne de support d'urgence 24/7
• Support multilingue disponible

Systèmes de facturation et de communication numériques

La plate-forme de facturation numérique traite 578 000 factures électroniques mensuelles en 2024.

Canal de communication numérique	Pourcentage d'utilisateur
Facturation par e-mail	68%
Alertes SMS	42%
Notifications d'applications mobiles	35%

Northwestern Corporation (NWE) - Modèle d'entreprise: segments de clientèle

Consommateurs d'électricité résidentielle

Northwestern Energy dessert environ 370 000 clients électriques du Montana, du Dakota du Sud et du Nebraska. Le segment résidentiel représente 68% de sa clientèle totale électrique.

État	Clients résidentiels	Facture mensuelle moyenne
Montana	224,000	$117.50
Dakota du Sud	92,000	$105.25
Nebraska	54,000	$98.75

Entreprises commerciales et industrielles

Les clients commerciaux et industriels représentent 29% de la clientèle électrique de Northwestern, totalisant environ 107 000 clients.

• Les grands clients industriels comprennent les installations d'exploitation minière, de fabrication et de transformation agricole
• Consommation annuelle moyenne d'électricité par client commercial: 45 000 kWh
• Revenu total de l'électricité commerciale et industrielle: 247,3 millions de dollars en 2022

Clients du secteur agricole

Les clients agricoles représentent un segment important dans la catégorie des clients commerciaux, avec des besoins spécifiques au Montana et au Dakota du Sud.

Type de client agricole	Nombre de clients	Utilisation annuelle moyenne
Irrigation	3,200	65 000 kWh
Opérations agricoles	2,800	42 000 kWh

Institutions municipales et gouvernementales

Northwestern dessert environ 1 200 clients municipaux et gouvernementaux à travers ses territoires de service.

• Écoles publiques: 450 clients
• Installations gouvernementales locales: 350 clients
• Bâtiments du gouvernement de l'État: 400 clients
• Revenus électriques annuels du secteur municipal: 38,6 millions de dollars

Utilisateurs d'électricité rurale et urbaine

La zone de service de Northwestern comprend divers paysages géographiques avec des schémas de consommation d'électricité distincts.

Emplacement client	Nombre de clients	Consommation d'électricité
Zones rurales	198,000	1 850 kWh / mois
Zones urbaines	279,000	2 350 kWh / mois

Northwestern Corporation (NWE) - Modèle d'entreprise: Structure des coûts

Production d'électricité et maintenance des infrastructures

Coûts annuels de maintenance des infrastructures: 78,4 millions de dollars en 2022

Catégorie d'infrastructure	Coût annuel
Maintenance de la ligne de transmission	32,6 millions de dollars
Entretien de l'équipement électrique	25,9 millions de dollars
Modernisation de la grille	19,9 millions de dollars

Frais de conformité réglementaire

Coût total de conformité réglementaire: 45,2 millions de dollars en 2022

• Conformité de la réglementation environnementale: 22,7 millions de dollars
• Adhésion standard de sécurité: 15,5 millions de dollars
• Rapports et documentation: 7 millions de dollars

Salaires et avantages sociaux des employés

Total des dépenses du personnel: 143,6 millions de dollars en 2022

Catégorie de dépenses	Montant
Salaires de base	98,3 millions de dollars
Assurance maladie	22,1 millions de dollars
Prestations de retraite	23,2 millions de dollars

Mises à niveau de la technologie et du système

Investissement total technologique: 56,7 millions de dollars en 2022

• Technologie de la grille intelligente: 27,4 millions de dollars
• Systèmes de cybersécurité: 15,3 millions de dollars
• Infrastructure numérique: 14 millions de dollars

Initiatives de protection de l'environnement et de durabilité

Dépenses totales de durabilité: 41,5 millions de dollars en 2022

Initiative de durabilité	Investissement
Développement d'énergie renouvelable	24,6 millions de dollars
Programmes de réduction du carbone	11,2 millions de dollars
Recherche environnementale	5,7 millions de dollars

Northwestern Corporation (NWE) - Modèle d'entreprise: Strots de revenus

Ventes d'électricité résidentielle

Pour l'exercice 2023, Northwestern Corporation a déclaré un chiffre d'affaires résidentiel de 458,3 millions de dollars.

Segment de clientèle	Revenus annuels	Taux moyen
Clients résidentiels	458,3 millions de dollars	0,1237 $ par kWh
Connexions résidentielles totales	358,642	N / A

Contrats d'électricité commerciaux et industriels

Les ventes d'électricité commerciale et industrielle ont généré 612,7 millions de dollars de revenus pour Northwestern en 2023.

Type de client	Revenus annuels	Consommation moyenne
Clients commerciaux	387,4 millions de dollars	6 542 MWh
Clients industriels	225,3 millions de dollars	12 387 MWh

Ventes de crédit d'énergie renouvelable

Northwestern Corporation a généré 24,6 millions de dollars à partir des ventes de crédit aux énergies renouvelables en 2023.

• Crédits d'énergie éolienne: 14,2 millions de dollars
• Crédits d'énergie solaire: 10,4 millions de dollars

Frais de service d'infrastructure

Les frais d'infrastructure et de transmission ont totalisé 87,5 millions de dollars en 2023.

Type de service	Revenus annuels
Frais de connexion de la grille	53,2 millions de dollars
Services de transmission	34,3 millions de dollars

Incitations du programme d'efficacité énergétique

Les incitations et les rabais sur le programme d'efficacité énergétique ont généré 12,4 millions de dollars en 2023.

• Programmes d'efficacité énergétique résidentiels: 7,6 millions de dollars
• Programmes commerciaux de l'efficacité énergétique: 4,8 millions de dollars

NorthWestern Corporation (NWE) - Canvas Business Model: Value Propositions

You're looking at the core promises NorthWestern Corporation (NWE) makes to its customers and investors as of late 2025. It's all about stability, essential service, and disciplined growth in a regulated environment.

Safe, Reliable, and Essential Electric and Natural Gas Utility Service

NorthWestern Corporation (NWE) provides the foundational energy services-electricity and natural gas-that keep its service territories running. This is the bedrock of the business, backed by infrastructure investments.

The company serves approximately 787,000 customers across Montana, South Dakota, and Nebraska, plus Yellowstone National Park, supported by 1,585 employees. The natural gas system boasts a leak-per-mile rate better than the industry average due to investments in pipe infrastructure and leak detection capabilities. Furthermore, the company brought two new generation units online recently, on time and under budget, which should improve efficiency during peak power demand periods.

Regulated Stability Providing Predictable Long-Term Earnings Growth

The regulated nature of the business is a key value proposition, translating directly into predictable financial outcomes for shareholders. NorthWestern Corporation (NWE) has consistently affirmed its long-term targets, which you can see clearly laid out here:

Metric	Target/Guidance (Late 2025)	Source Context
Long-Term EPS Growth Rate	4% to 6%	Affirmed for 2025-2029 capital plan
Long-Term Rate Base Growth Rate	4% to 6%	Expected to be supported by the 2025-2029 capital plan
2025 Non-GAAP EPS Guidance Range	$3.53 to $3.65 per diluted share	Affirmed after Q3 2025 results
Quarterly Dividend	$0.66 per share	Declared payable December 31, 2025
Targeted Total Return	8% to 11%	Combining dividend yield of 4% to 5% and EPS growth

This stability is further supported by a quarterly dividend of $0.66 per share, announced in Q3 2025.

Commitment to a Low-Carbon Future

NorthWestern Corporation (NWE) is building on existing clean energy assets while setting ambitious long-term goals. The company has already achieved a carbon-free generation level that outpaces the industry average.

• Carbon-free electric generation in 2024: 58%.
• U.S. electric power industry average carbon-free generation: 40%.
• Hydroelectric facilities provided nearly 34% of Montana customers' electricity in 2024.
• Net Zero Carbon Emissions Goal: By 2050.

The company is investing in pilot projects like energy storage, microgrids, and solar generation performance.

Supporting Regional Economic Growth

A significant part of the value proposition involves enabling large-scale regional economic development, particularly through serving data centers. This translates into concrete revenue potential.

If 500 megawatts of data center demand materializes by 2030, NorthWestern Corporation (NWE) could generate $50-70 million annually in regulated service revenues. The company has also recently grown its customer base through strategic acquisitions, integrating approximately 33,000 customers from the Energy West transaction.

Long-Term Rate Stability Expected from Merger Efficiencies

The pending all-stock merger with Black Hills Corporation is expected to create a larger, stronger regional utility, which carries its own set of financial promises, including enhanced growth targets for the combined entity.

The merged company is projected to support a long-term target EPS growth rate of 5%-7%, which is greater than what both Black Hills and NorthWestern Corporation (NWE) targeted on a standalone basis. The combined entity will serve approximately 2.1 million customers across eight contiguous states. The earlier Energy West merger also aimed to improve operational efficiency through infrastructure integration.

Finance: draft 13-week cash view by Friday.

NorthWestern Corporation (NWE) - Canvas Business Model: Customer Relationships

You're looking at how NorthWestern Corporation (NWE) manages the connection with the people and businesses that rely on its essential services. For a regulated utility, the relationship is fundamentally long-term and non-negotiable, but the quality of service dictates regulatory outcomes and customer acceptance of necessary rate adjustments.

Regulated service model ensuring long-term, non-competitive relationships

The relationship with NorthWestern Corporation (NWE) customers is defined by its regulated status across Montana, South Dakota, and Nebraska. This structure locks in a long-term service commitment, as customers generally cannot switch providers for electricity or gas delivery. This stability is reflected in the company's financial targets, which rely on predictable rate recovery. NorthWestern Energy is reaffirming its long-term earnings per share growth rate target of 4% to 6% over the next five years. To support this, the company plans to invest $2.7 billion between 2025 and 2029, aiming for a similar 4% to 6% rate base growth. The relationship is also cemented by a commitment to shareholders, with a declared quarterly common stock dividend of $0.66 per share as of late 2025, targeting a long-term payout ratio of 60%-70%.

The regulatory environment directly shapes customer interactions, especially regarding pricing. For instance, following a contested rate case, the Montana Public Service Commission (PSC) approved an electric rate increase of only 4.2% for the average residential customer, significantly lower than the 8.3% increase NWE initially implemented in May 2025. This balancing act between utility investment and customer affordability is central to the relationship.

Proactive communication during outages and Public Safety Power Shutoff events

While specific outage communication metrics for Public Safety Power Shutoff (PSPS) events aren't detailed, the focus on reliability is quantifiable through investment and performance measurement. NorthWestern Corporation (NWE) is making substantial capital investments to strengthen infrastructure, including $158 million in electric transmission and $197 million in electric distribution infrastructure, partly supporting wildfire mitigation efforts. The company measures customer satisfaction using J.D. Power surveys that specifically include components like power quality and reliability (electric) and field service (gas) when benchmarking against mid-sized investor-owned utility peers.

Community engagement through local programs and environmental trusts

NorthWestern Corporation (NWE) actively engages with communities through specific, measurable contributions. The Missouri-Madison River Fund Trust, in partnership with NorthWestern Energy, has supported 175 projects since 2007, with the utility contributing $1.8 million in matching funds to these efforts. This has leveraged total public recreation improvements of $14.1 million in the Missouri-Madison Corridor since 2007. For 2025 alone, NorthWestern Energy is contributing an additional $569,487 to state, federal, and local agencies for operation and maintenance at recreation sites that see roughly one million visits annually. These programs underscore a commitment to the local environment and community experience.

Dedicated account management for large industrial and commercial customers

The focus on large customers is evident in strategic growth areas that require specialized relationship management. NorthWestern Corporation (NWE) is actively pursuing large-load data center customers, having entered into its third Letter of Intent (LOI) with a developer targeting 500 plus megawatts of demand by 2030. The acquisition of Energy West Montana in July 2025 expanded the natural gas distribution customer base by approximately 33,000 customers, requiring integration and dedicated service management for this newly added segment.

Online portals and customer service centers for billing and service requests

The operational backbone for routine customer interactions involves digital and physical service points. As of the third quarter of 2025, NorthWestern Energy provides electricity and/or natural gas to approximately 842,100 customers across its service territories. The company uses customer satisfaction metrics from J.D. Power surveys, which specifically track performance in billing and payment, alongside communications and customer service. The company's Q3 2025 Adjusted Non-GAAP EPS was $0.79, showing operational performance that supports ongoing service delivery.

Here's a quick look at the scale of the customer base and recent financial context:

Metric	Value (as of late 2025)	Context
Total Customers Served	Approximately 842,100	Electricity and/or natural gas customers across service areas
New Gas Customers Added (2025)	Roughly 33,000	From the acquisition of Energy West Montana
Electricity Communities Served	341	In Montana, South Dakota, and Yellowstone National Park
Q3 2025 Adjusted EPS	$0.79	Reflects operational performance impacting service funding
2025 Capital Investment Plan	$531 million (for 2025)	Supports infrastructure reliability and customer service
Quarterly Dividend Declared	$0.66 per share	Indicates financial stability supporting long-term service commitments

NorthWestern Corporation (NWE) - Canvas Business Model: Channels

NorthWestern Corporation (NWE) uses a mix of extensive physical infrastructure and modern digital interfaces to reach its customer base across its service territories in Montana, South Dakota, Nebraska, and Yellowstone National Park.

Physical electric transmission and distribution lines to homes and businesses.

The core channel involves the physical assets required to deliver energy. NorthWestern Corporation (NWE) operates the high-voltage electric transmission system and the local distribution system for electricity. The company detailed significant recent investment in this physical plant, including:

• $158 million in electric transmission infrastructure upgrades in Montana.
• $197 million in electric distribution infrastructure in Montana.

Natural gas pipelines and local distribution systems.

For natural gas delivery, NorthWestern Corporation (NWE) utilizes its owned and operated production, transmission, and distribution systems. The customer base expanded significantly in mid-2025 through acquisition:

• Completed the acquisition of Energy West's natural gas distribution system in Montana on July 1, 2025.
• This acquisition added over 33,000 valued customers to the natural gas system.

The total customer base served by NorthWestern Corporation (NWE) across all services was approximately 787,000 customers as of early 2025, with a Q1 2025 report noting 775,300 customers before the latest acquisition.

Direct customer service centers and call centers.

Direct interaction remains a necessary channel for service support, billing inquiries, and emergency response. While specific call center volume data isn't public, the scale of operations supports this channel. The company has 1,585 employees working across its service territory as of Q1 2025.

Digital channels: website, mobile app, and online billing platforms.

NorthWestern Corporation (NWE) supports customer interaction through digital means, which is critical for modern utility operations, especially for managing billing and service requests. The company's 2025 capital plan of $531 million supports ongoing modernization efforts.

The following table summarizes key operational scale metrics relevant to the channel reach:

Metric	Value	Context/Date
Total Customers Served	Approximately 787,000	As of early 2025, pre-Energy West acquisition
New Natural Gas Customers Acquired (Q3 2025)	Over 33,000	Energy West acquisition, July 1, 2025
2025 Capital Expenditures Affirmed	$531 million	Affirmed for 2025
Electric Generation Fleet Mix	58% carbon-free	As of Q1 2025
Pending Merger Rate Base (Electric)	$7.0 billion	Combined with Black Hills Corp.

Regulatory filings and public hearings for rate changes.

Regulatory proceedings are a crucial, albeit indirect, channel for realizing revenue from infrastructure investments and setting customer rates. These filings directly impact the amounts customers pay through the utility bills they receive via the physical and digital channels.

Key regulatory activities impacting channels in 2025 include:

• Montana electric rate settlement resulted in a 1.7% revenue increase.
• This Montana electric rate change translated to a 4.2% increase for the average residential customer's electric rate.
• Interim electric rates were implemented in Montana on May 23, 2025, for a base rate revenue increase of $156.5 million (interim, subject to refund).
• A South Dakota Natural Gas Rate Review was approved, effective December 19, 2024.
• The outcome of the Montana general rate review was anticipated in Q4 2025.

NorthWestern Corporation (NWE) - Canvas Business Model: Customer Segments

NorthWestern Corporation (NWE) serves approximately 842,100 customers as of the Third Quarter of 2025 across its service territory. This figure reflects growth, including the addition of roughly 33,000 customers from the Energy West Montana acquisition completed on July 1, 2025.

The total customer base is spread across regulated operations in Montana, South Dakota, Nebraska, and Yellowstone National Park. Prior reporting indicated a total customer count of approximately 787,000 customers.

The customer base is segmented by service type and geography, with specific data available for the Montana operations:

• Residential electric and natural gas customers across the service territory.
• Commercial businesses, including small and medium enterprises.
• Industrial and large-load customers, notably new data center developments.

The service territory includes:

• The western two-thirds of Montana for electric and natural gas.
• Eastern South Dakota for electric service.
• Natural gas service in central Nebraska.
• Electricity service to Yellowstone National Park.

For the Montana energy operations as of December 31, 2024, the customer distribution was:

Customer Type	Count
Electric Customers (MT & Yellowstone)	413,400
Natural Gas Customers (MT & Yellowstone)	214,500

NorthWestern Corporation is actively engaging with large-load customers, reporting a third large-load letter of intent with a developer for a proposed 500 megawatt project in Montana.

The company's electric system serves 341 communities and surrounding rural areas, utilizing about 29,000 miles of transmission and distribution lines. The natural gas system serves 202 communities and surrounding rural areas with approximately 10,000 miles of transmission and distribution pipelines and storage facilities.

Here's the quick math on the geographic service footprint:

State/Area	Service Type	Historical Service Start
South Dakota, Nebraska	Electric (Generation/Distribution), Natural Gas (Distribution)	1923
Montana, Yellowstone National Park	Electric (Distribution/Generation), Natural Gas (Distribution)	2002

NorthWestern Corporation (NWE) - Canvas Business Model: Cost Structure

Capital Expenditures

NorthWestern Corporation (NWE) maintains a significant investment profile to support its energy infrastructure and growth objectives. The company affirmed a specific capital plan for the current fiscal year.

• Affirmed capital plan for 2025: $531 million.
• Long-term capital investment plan for 2025-2029: $2.7 billion.
• The long-term plan is expected to support rate base growth of 4% to 6% from a 2024 base year of approximately $5.4 billion.
• An incremental project, a 131 MW natural gas generating facility in Aberdeen, South Dakota, has an anticipated cost of approximately $300 million, which is not currently included in the five-year forecast.

Fuel, Purchased Power, and Direct Transmission Expenses

These variable costs are substantial components of NorthWestern Corporation (NWE)'s operating expenses, fluctuating based on usage and market conditions. Data from the first half of 2025 illustrates the magnitude of these costs.

Period Ending	Fuel, Purchased Supply and Direct Transmission Expense (in thousands)
March 31, 2025 (Three Months)	$91,897
June 30, 2025 (Six Months)	$147,338

The utility margin for the third quarter ended September 30, 2025, was $300.1 million, an increase of 16.6% over the prior year period.

Interest Expense on Secured Debt

Financing the capital program involves substantial interest costs on outstanding debt obligations. NorthWestern Corporation (NWE) has actively managed its debt structure through issuances of secured bonds.

For the three months ended March 31, 2025, the net interest expense was ($28,518 thousand). For the six months ended June 30, 2025, net interest expense totaled ($57,008 thousand).

A key component of this debt structure includes the Montana First Mortgage Bonds. On March 21, 2025, NorthWestern Corporation issued $400.0 million aggregate principal amount of these bonds at a fixed interest rate of 5.07 percent, maturing March 21, 2030. Later, on November 7, 2025, an additional $100 million principal amount of these Montana First Mortgage Bonds due 2030 was issued, bringing the total outstanding amount of these specific bonds to $500 million, carrying an interest rate of 5.073%.

Operating, Administrative, and General Costs

These overhead and administrative costs are a consistent drain on operating income, with specific spikes related to strategic corporate actions like mergers.

Merger-related costs incurred during the three months ended September 30, 2025, totaled $7.6 million and were included in Administrative and general expenses. This amount also represented $0.12 per share impact on the third quarter 2025 Non-GAAP EPS bridge.

Historical operating, administrative and general expenses for comparison include:

• Three Months Ended March 31, 2025: $80,524 thousand.
• Six Months Ended June 30, 2025: $159,883 thousand.

Depreciation, Property Taxes, and Regulatory Compliance Costs

Non-cash expenses like depreciation, alongside property taxes, are significant fixed costs within the operating structure. Regulatory compliance is an ongoing cost driver, evidenced by merger-related expenses and ongoing rate case activities.

Key figures for Depreciation and Property Taxes for the first quarter of 2025 were:

Expense Category (Three Months Ended March 31, 2025, in thousands)	Amount
Depreciation and depletion	$49,726
Property and other taxes	$41,097

For the six months ended June 30, 2025, these costs were:

Expense Category (Six Months Ended June 30, 2025, in thousands)	Amount
Depreciation and depletion	$99,344
Property and other taxes	$87,349

The decrease in Q3 2025 GAAP net income compared to Q3 2024 was primarily due to higher operating expenses, including merger-related costs and depreciation.

NorthWestern Corporation (NWE) - Canvas Business Model: Revenue Streams

NorthWestern Corporation (NWE) revenue streams are primarily derived from regulated utility sales and associated infrastructure services across Montana, South Dakota, and Nebraska.

For the three months ended March 31, 2025, the breakdown of reported Total Revenues was:

Revenue Component	Amount (in thousands)	Amount (in millions)
Electric Revenues	$281,439	$281.439
Gas Revenues	$87,689	$87.689
Total Revenues (Q1 2025)	$369,128	$369.128

The regulated electric sales revenue from residential, commercial, and industrial customers is represented by the Electric Revenues line item. Regulated natural gas sales revenue is represented by the Gas Revenues line item. The drivers for revenue performance in early 2025 included new rates in Montana, South Dakota, and Nebraska, alongside higher electric and natural gas retail volumes.

Revenues related to electric transmission and natural gas transportation are key components contributing to margin growth. For instance, the Consolidated gross margin for Q1 2025 was reported at $166.2 million, an increase of 16.6 percent compared to Q1 2024, driven in part by higher electric transmission revenues and higher natural gas transportation revenues. Furthermore, the Utility Margin for the third quarter of 2025 reached $300.1 million.

The financial outlook for the full year is quantified by management guidance:

• Non-GAAP earnings guidance for 2025 is $3.53 to $3.65 per diluted share.
• Consolidated gross margin for Q1 2025 was $166.2 million.

Additional context on revenue-related performance indicators includes:

• Non-GAAP EPS for the first nine months of 2025 was $2.41, up 6.2 percent from the prior year period.
• The quarterly common stock dividend declared was $0.66 per share, payable September 30, 2025.