FOR IMMEDIATE RELEASE:
May 19, 2026
PSC APPROVES GAS MERGER,
SETS CUSTOMER PROTECTIONS
LINCOLN – The Nebraska Public Service Commission has
issued an order approving the proposed merger between
natural gas utilities Black Hills Corp. and NorthWestern
Energy Group, Inc. The Commission is required under
state law to ensure such transactions do not harm
customers and are consistent with the public interest.
With the order, Nebraska becomes the first state to
approve the proposal. Approval remains pending before
regulators in Montana and South Dakota, as well as
federal authorities.
The Commission’s order today follows review of
testimony, filings and evidence submitted in Docket
NG-128. The order also approves settlement agreements
reached between the utilities, the Laborers’ International
Union of North America (LIUNA) and the Public Advocate
appointed to represent ratepayers.
“The Commission undertook a thorough and careful review
of this request to ensure it serves the public interest,” said
Commission Chair Tim Schram. “Approval of the merger,
subject to the terms of the settlement agreements, will
support continued safe, reliable natural gas service for
Nebraskans while maintaining responsible regulatory
oversight and customer protections.”
As part of the approved settlements, the utilities agreed to
a range of enforceable commitments, including:
- Rate protections: A moratorium on general base rate
increases for NorthWestern Energy in Nebraska until
May 1, 2027; and for Black Hills in Nebraska until May
1, 2028, with limited exceptions for extraordinary
circumstances. - Cost protections: A prohibition on recovering merger
transaction costs from Nebraska ratepayers and
restrictions on seeking recovery of certain transition
costs unless customer benefits outweigh those costs. - Oversight and reporting: Annual reporting on safety,
service quality and merger integration activities to
ensure ongoing accountability to regulators and the
public. - Workforce and contracting provisions: Commitments
to fair contracting practices, consideration of Nebraska-
based labor, and requirements tied to safety standards
and compensation for large-scale infrastructure projects.
The Commission found that the agreements represent a
reasonable resolution to the issues in the case and that the
proposed merger would not adversely affect the utilities’
ability to serve their combined total of approximately 350,000
customers across Nebraska. Black Hills and NorthWestern
have indicated that the merger is not expected to result in
customer-facing changes to day-to-day services such as
billing, meter reading or emergency response.
The utilities announced the all-stock merger in August 2025.
It was approved by shareholders of both companies in April
2026.
The transaction is expected to close in the second half of
2026, pending remaining governmental approvals.
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Media Contact:
Jason McFarley – Public Information & Education Officer
(402) 430-5640
jason.mcfarley@nebraska.gov
