Montana PSC opens hearing on NW Energy $15B merger
Keila Szpaller
(Daily Montanan) If NorthWestern Energy and Black Hills Corp merge, the deal could mean as much as $16 million for CEO Brian Bird, and a total of nearly $30 million for the top five executives of the Montana utility.
Bird is CEO of NorthWestern, and if the Montana Public Service Commission approves the proposed merger, and the deal goes through, Bird would head the new company, Bright Horizon Energy, or get the “golden parachute.”
Tuesday, the Montana Public Service Commission’s hearing on the $15.4 billion merger started, with ratepayers calling for more transparency when it comes to data centers, and business representatives pushing for approval of the deal in a quest for reliable power.
In opening statements, lawyers for the utilities argued the merger will “deliver long-term value to customers” — but one attorney representing a couple of third parties said it would be a “betrayal” of Montanans.
“Everyone at the table negotiating this deal loved it,” said lawyer Monica Tranel, with 350 Montana and the Montana Farmers Union. “They all can make a lot of money from it. But who wasn’t there? The people of Montana.”
In questioning, Tranel showed NorthWestern would have less control if the merger is approved; Black Hills would account for 56% of the parent company overseeing the merged entity, while NorthWestern would account for 44%, and Black Hills would have six board seats, while NorthWestern would have five.
But lawyer Sarah Norcott, with NorthWestern Energy, said a merged company would still be under the oversight of the Montana Public Service Commission. Additionally, Norcott said the utility would be better equipped to weather market volatility and have easier access to capital to invest in infrastructure.
“Our Montana utility operations will remain exactly where they are today,” Norcott said.
In August 2025, NorthWestern Energy and Black Hills announced the proposed dealannounced the proposed deal, which requires approval from regulators, including the Montana Public Service Commission. The PSC is made up of five elected officials, currently all Republican, with two seats up for election this year.
The proposal under consideration includes four settlement agreements, including with the Montana Consumer Counsel, which advocates for customers, but ratepayers and conservation watchdogs have raised questions about the merger.
For example, a filing in the case has estimated labor “savings” at $36 million, with ensuing concerns about employee cuts in Montana. Also, on an investors call, Bird pitched the merger as a chance to “really capture data center opportunities,” but NorthWestern has blacked out most of the details in documents about those deals.
Tuesday, the hearing started with public comment, and many Montanans pointed to Bird’s remarks about the “capture” of data center businesses. Leah Nuese-Yaker, a recent graduate of the University of Montana, said the deal is for shareholders and tech companies, not Montanans.
“It is not for Montana families. It is not for rural communities who are already feeling the squeeze of rising utility costs,” Nuese-Yaker said.
Sarah Lundquist, with Families for a Livable Climate, said in other states, data center demand is leading to reliability concerns and “pressure on electricity costs,” with residential customers needing protection.
“Montanans should not be asked to shoulder these risks without clear protections and full public transparency,” Lundquist said.
But representatives of the business community asked the Public Service Commission to approve the merger to ensure companies in Montana can count on electricity to run operations into the future.
John Iverson, with the Treasure State Resources Association, said energy intensive businesses in timber, oil, gas, transportation and construction make investment decisions years, even decades in advance.
In doing so, Iverson said they need to know power will remain affordable and reliable.
“Without that, we don’t have these large-scale operations in Montana,” Iverson said. “We simply can’t support them.”
State Rep. Gary Parry, R-Colstrip, urged support for the merger. Parry, who represents a community with NorthWestern’s coal-fired plant and sits on Gov. Greg Gianforte’s energy task force, also said the question before the PSC isn’t about data centers.
“From my perspective, this merger is fundamentally about reliability, long-term infrastructure investment and ensuring Montana has a utility capable of meeting the growing demand, energy demands, of our state and region,” Parry said.
In opening statements, Norcott, on behalf of NorthWestern, said nothing in the merger diminishes the Public Service Commission’s authority, weakens regulatory protections, or shifts risk onto customers.
“Montana will remain the largest jurisdiction after the merger closes,” Norcott said. “Rates will remain unchanged because of the merger. Today’s exceptional service by these two utilities will remain.”
On behalf of Black Hills, lawyer Wiley Barker said the utilities are “natural” partners, serving some of the same territory, and sharing strong commitments to their respective communities and customers.
“This is not an acquisition. It is a true merger of equals,” Barker said.
On behalf of a couple of intervenors, however, Tranel said the people crafting the deal all have something to gain, from bankers who will get as much as $60 million in transaction fees to shareholders who already own both companies and will get a 5% to 7% higher return.
A Securities and Exchange Commission filing outlines the potential wins for NorthWestern executives should the merger close without positions for them, including $16 million for Bird, $5.3 million for Crystal Lail, $2.9 million for Shannon Heim, $2.5 million for John Hines (he retired after the filing, according to NorthWestern), and $2.6 million for Bobbi Schroeppel.
By comparison, Tranel said a credit for customers in a settlement with the Montana Consumer Counsel is $10 million, which she said some will argue is a good deal. But Tranel said that amount translates to about $18 a household — “not a customer, a household.”
Tranel also said if the merger is approved, the utilities together would control a span of land covering 20% of the United States, “a multistate area that covers the prime agricultural land in this country,” and a deal she said is designed to serve data center demand.
In its early days, Montana saw the Copper Kings enrich themselves in the state at the expense of clean rivers and workers, and some members of the public said they worried the merger would bring more of the same.
“If the Public Service Commission approves this merger, you will be creating a whole new modern-day robber-baron class … that will once again get filthy rich at the expense of our water, our Earth, our paychecks and generations to come,” said Patty Ames.
Mark Brastrup spoke about more recent history. Brastrup said he’s a journeyman lineman who has worked on the electrical grid in Montana for 30 years, and he sees firsthand what it takes to keep the electricity flowing.
Brastrup said the merger should be approved as a practical matter. He said Montana is a big state with tough weather and infrastructure that requires constant upkeep and investment, and a larger utility will mean more access to capital and resources.
“Keeping the system reliable takes people, materials, money and consistency over time,” Brastrup said. “What I’ve seen over the years, when the investment falls behind, the grid falls behind. Repairs take longer. Equipment ages out. The job gets harder and less safe for the crews working it. That’s where I see the benefit.”
The hearing is expected to resume at 8:30 a.m. Wednesday and conclude Friday.
A recent news release from the utilities about the merger said the deal still requires approval from regulators in Nebraska and South Dakota, and the companies expect to close the second part of 2026.