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.
“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 merger, customer rate hikes for Black Hills customers will be frozen until May of 2028. The agreement also bars the companies from passing merger transaction costs on to Nebraska ratepayers and requires annual reports on safety, service quality and merger integration efforts.
Additional provisions include commitments tied to fair contracting practices, use of Nebraska-based labor and safety standards for major infrastructure projects. 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 companies expect the merger to close in the second half of this year, pending remaining regulatory approvals.