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June 2008 Issue
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EBR ASKA AND
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OUTH
D
AKOTA A
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orthWestern Energy is a major, regional provider of
electricit y, natural gas and related services to
approximately 650,000 customers in Montana,
South Dakota and Nebraska. Our electric system has
more than 31,200 miles of transmission and distribution lines
and associated facilities serving 297 communities and surrounding
rural areas in Montana and eastern South Dakota. Our natural
gas system includes approximately 8,000 miles of transmission
and distribution pipelines and storage facilities serving
168 communities and surrounding rural areas in Montana,
South Dakota and central Nebraska. NorthWestern Energy has
approximately 1,351 full-time employees.
The South Dakota and Nebraska energy operations provide
electric and natural gas distribution services to approximately
60,100 electric customers and 84,500 natural gas customers in
the eastern half of South Dakota and in four Nebraska
municipalities.
NorthWestern Energy is dedicated to providing safe, reliable
and cost-effective energy and services to all of its residential,
commercial and industrial customers.
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Retail electric and natural gas distribution,
transmission and supply services.
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Natural gas distribution.
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Wholesale electric services.
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Dedicated and responsible partners in
business retention, business expansion
and business creation through Economic
Development resources.
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Online customer services including account
access, service requests and bill payment.
P
ROGR AMS
& S
ERVICES
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Listed below is a summary of NorthWesterns
programs and services.
Additional information can be found on our company Web site at: www.northwesternenergy.com.
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System Facts
system facts...
1
Customer counts are rounded totals as of December 31, 2007, and as published in NorthWestern Energys 2007 10-K.
2
Other customer category includes companies and agencies.
Sources: NorthWestern Energy SEC filings and internal documents.
SOUTH DAKOTA AND NEBRASKA OPERATIONS
1
South Dakota Electric and Gas Operations Area
Electric services to 25 counties in eastern South Dakota with a combined population of
99,900. Natural Gas services to 22 counties in South Dakota and Nebraska and a population
of 206,100. (2000 census)
Nebraska Gas Operations Area
Four cities in southcentral Nebraska
Number of Employees
Approximately 320 employees in South Dakota and Nebraska
Number of Customers and Types
1
Total
Residential
Commercial & Industrial
2
Other
2
Electric
60,100
47,921
11,332
847
Natural Gas
84,500
73,920
10,351
229
Major South Dakota and Nebraska Cities Served
Cities
Electric Service
Natural Gas Service
NorthWestern Energy serves 139 communities in
South Dakota and four communities in Nebraska. In
addition to the cities listed here, we also serve
numerous small towns in South Dakota. Please
consult NorthWestern Energy to determine if we
serve your location.
Aberdeen, SD
YES
YES
Brookings, SD
NO
YES
Huron, SD
YES
YES
Mitchell, SD
YES
YES
Yankton, SD
YES
NO
Alda, NE
NO
YES
Grand Island, NE
NO
YES
Kearney, NE
NO
YES
North Platte, NE
NO
YES
Electric and Natural Gas Retail Rates:
South Dakota Pricing for electric and natural gas retail services are established by tariffs filed with and approved by the South Dakota Public
Utilities Commission. South Dakota has regulated natural gas and electric services. The commodity supply portion of the bill for natural gas and
the fuel and purchased power portion of the electric bill is subject to monthly tracker cost adjustments.
Nebraska Pricing for natural gas retail services are established by tariffs filed with and approved by the Nebraska Public Service Commission. The
supply portion of the bill for natural gas is subject to twice yearly fuel cost adjustments and is shown separately from the delivery charge.
NorthWestern Energys electric and natural gas tariff rates and an electric rate comparer with other utilities in the U.S. is available online at
www.northwesternenergy.com.
ELECTRIC OPERATIONS
Service Area Size
25 counties in the eastern half of South Dakota
Peak & Average Load
Peak demand was approximately 317 megawatts, the average daily load was approximately
154 megawatts, and more than 1.35 million megawatt hours were supplied to customers
during 2007.
Generation
Own 205 megawatts of electric generation serving South Dakota customers from three
coal-burning baseload plants and 105 megawatts from various natural gas and fuel oil
peaking units.
Distribution and Transmission Miles
3,200 miles distribution and transmission and 120 substations.
Transmission Interconnections: Transmission system has connections to the Mid-Continent Area Power Pool, which is an area power pool
arrangement consisting of utilities and power suppliers having transmission interconnections located in a nine-state area in the North Central
region of the United States and in two Canadian provinces. The terms and conditions of the Mid-Continent Area Power Pool agreement and
transactions between Mid-Continent Area Power Pool members are subject to the jurisdiction of the FERC.
Transmission Wholesale Rates: Transmission services for retail access are provided under the Federal Energy Regulatory Commission Electric
Open Access Transmission Tariff, available online at www.northwesternenergy.com.
NATURAL GAS OPERATIONS
Service Area Size
We provide natural gas to approximately 84,500 customers in 59 eastern South Dakota
communities and four south central Nebraska communities.
Peak Load
For year-end 2007, our South Dakota retail sales were approximately 5.27 million
dekatherms and for Nebraska it was approximately 5.178 million dekatherms.
Natural Gas Distribution
We have 2,200 miles of distribution mains. In South Dakota, we also provide natural gas
sales to a number of large-volume customers delivered through the distribution system of
an unaffiliated natural gas utility company.
System Interconnections: Pipeline interconnections with Northern Natural Gas, Northern Border, Kinder-Morgan and Trailblazer.
On-System Transportation: End-use customers can contract for on-system transportation services. On-system services include firm and
interruptible distribution transportation and are regulated by the South Dakota Public Utilities Commission. Customers not interconnected
with NorthWesterns regulated system negotiate a separate rate. Customers with large loads and bypassable locations that are connected
with the regulated system may receive rate deviation from the PUC. A
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Energy
47%
Demand
26%
Fuel and
Purchased
Power
24%
Power Factor
3%
rates...
SOUTH DAKOTA NORTHWESTERN ENERGY
COMMERCIAL CUSTOMER
Monthly Electric Billing Components
using 14,000 kWh & 40 kW Demand per month
January 1, 2008
South Dakota utilities are regulated by the
South Dakota Public Utilities Commission with respect
to electric service territorial issues, rates, terms and
conditions of service, accounting records and other
aspects of our operations. We have the exclusive right
to serve an assigned ser vice area in South Dakota
comprised of 25 counties with a combined
population of approximately 99,900 people according
to the 2000 census.
The Nebraska Public Service Commission has
jurisdiction over our natural gas operations in Nebraska.
R
EGULATION
R
ELIABLE
S
UPPLY
NorthWestern Energy provides electricit y
distribution in South Dakota and relies on its own
generation to provide a reliable supply and
reasonable prices for its electric customers. Electric
services to customers generally involve only one point
of deliver y and power supply source. Customers with
special needs for redundant power sources will
t ypically be responsible for additional costs related
to redundant power deliver y. If a project has special
needs for redundant power sources, the developers
must coordinate these with NorthWestern Energy
and contact the utilit y early in the project
development process.
NorthWestern Energy provides nat ural gas
distribution for customers in South Dakota and
Nebraska. Supply requirements are fulfilled through
third-part y fixed-term purchase contracts, nat ural gas
storage services contracts and short-term market
purchases. This supply f lexibilit y or portfolio
approach enables us to maintain a diversified supply
of nat ural gas sufficient to meet our supply
requirements.
Rates
The tariffs establish a range of service classifications
for both electric and natural gas customers based on
customer size and other circumstances. For customers
who are not under the bundled tariffs, rates for
transmission services are provided under a tariff filed
with and approved by the Federal Energy Regulatory
Commission.
E
LECTRIC
R
ATES
Components displayed on the bill include: energy,
demand, fuel and power factor. The fuel and
purchased power portion of the bill is subject to a
quarterly tracker cost adjustment. The table below
shows these various billing components for a
NorthWestern Energy commercial customer with a
monthly usage of 14,000 kWh and 40 kW demand
and an 85% power factor at a monthly cost of
$1,228.70 (as of Januar y 1, 2008). A
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rates...
Electric Rates
1
Rates effective January 1, 2008; fuel and purchase power portion of bill is adjusted quarterly.
1
Source: Edison Electric Institute
Typical Bills