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2019 COMMUNITY WORKS REPORT

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Page 1: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

2019COMMUNITY

WORKS REPORT

Page 2: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

We are proud to serve a diverse service territory. The Mitchell Corn Palace in Mitchell, S.D. is just one example of the local landmarks in the many communities we serve.

Cover: The majority of NorthWestern Energy employees volunteer in their communities. For the past several years, Bozeman, Mont. employees have volunteered their time to build trails with the Gallatin Valley Land Trust.

OUR VISIONEnriching lives through a safe, sustainable energy future.

OUR MISSIONWorking together to deliver safe, reliable and innovative energy solutions that create value for customers, communities, employees and investors.

OUR VALUESWe live our values through a strong and binding commitment to safety in our work practices, excellence in service to our customers, treating everyone with respect, creating value for our stakeholders, conducting our business with the utmost integrity, community involvement, and environmental responsibility, each and every day.

ABOUT THIS REPORTAs members of the communities we serve, NorthWestern Energy is passionate about giving back.

The 2019 Community Works Report provides an overview of our volunteerism, charitable contributions, customer service and environmental stewardship. We prepared this report in coordination with our annual report for the fiscal year ending Dec. 31, 2018.

ACKNOWLEDGMENTSThis report was produced through a partnership of numerous NorthWestern Energy employees and our Creative Services and Communications team.

2 | 2019 Community Works Report

Page 3: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

A MESSAGE FROM OUR PRESIDENT AND CEONorthWestern Energy’s mission is to deliver safe, reliable and innovative energy service for our 726,400 customers across Montana, South Dakota, Nebraska and Yellowstone National Park in Wyoming. We are proud to be a valued member of the 318 communities in Montana and South Dakota we supply with electrical service, along with Yellowstone National Park in Wyoming, as well as the 180 communities in Montana, South Dakota and Nebraska we supply with gas service.

These cities and towns are much more than places on a map. They are home to our 1,500 employees, who are active in their communities. They volunteer, they serve and they lead. NorthWestern Energy encourages employees to give back, and as a company we do the same. We are a responsible and active corporate citizen.

About 80 percent of our employees regularly volunteer, a remarkable statistic. NorthWestern Energy supports our employees’ dedication by investing more than $1.7 million in 2018 in charitable donations and sponsorships, economic development opportunities, United Way, chambers of commerce, scholarships and professional association dues. When our employees volunteer, NorthWestern provides a grant to the non-profit organizations they serve. I have the privilege of sending out letters to our employee volunteers, thanking them for their service and notifying them of grants for their favorite organizations. It is something I look forward to because it conveys the range of our employees’ commitments to serving our communities.

Community Works is our report to you, our customers. While we regularly report to our shareholders, our three state regulatory commissions and other agencies, I always look forward to sharing our Community Works Report with our customers and all of our stakeholders in the outstanding part of the country we are privileged to serve.

2019 Community Works Report | 3

Page 4: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

TERRITORY HIGHLIGHTS

MONTANA

SOUTHDAKOTA

NORTHDAKOTA

NEBRASKAWYOMING

Hydro Facilities

Natural Gas

Electric

Thermal Generating Plants

Natural Gas Reserves

Peaking Plants

Wind Farm

GREATFALLS

OUR SERVICE TERRITORY

MT Electric

374,000 customers in 208 communities

6,872 miles of transmission lines

17,895 miles of distribution lines

871 MW nameplate owned power generation

MT Natural Gas

199,200 customers in 118 communities

4,781 miles of distribution pipelines

2,100 miles of intrastate transmission pipelines

18 Bcf gas storage

52 Bcf owned proven natural gas reserves

SD Electric

63,800 customers in 110 communities

3,572 miles of transmission & distribution lines

440 MW nameplate owned power generation

SD Natural Gas

46,900 customers in 59 communities

1,642 miles of pipelines

55 miles of intrastate transmission pipelines

NE Natural Gas

42,500 customers in 3 communities

795 miles of pipelines

4 | 2019 Community Works Report

Page 5: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

Black Eagle Dam in Great Falls, Mont. is one of 11 hydro facilities owned by NorthWestern Energy.

BALANCED AND DIVERSE ENERGY MIXWe own a mix of clean and carbon-free energy resources balanced with traditional energy sources that help us deliver affordable and reliable electricity to our customers 24/7.

In 2018, approximately 55 percent of our electric portfolio originated from carbon-free resources.

61% Carbon-Free

MONTANAELECTRIC GENERATION PORTFOLIO

BASED ON MWH OF OWNED AND LONG-TERM CONTRACTED RESOURCES

Wind Owned 2%

Wind Contracted 13%

Hydro Owned 44%

Hydro Contracted

2%

Solar Contracted

<1%

Coal Owned20%

Natural Gas/Other

Owned4%

Natural Gas/Other Contracted

15%

55% Carbon-Free

NORTHWESTERN ENERGY2018 ELECTRIC GENERATION PORTFOLIO

BASED ON MWH OF OWNED AND LONG-TERM CONTRACTED RESOURCES

Wind Owned 6%

Wind Contracted 12%

Hydro Owned 35%

Hydro Contracted

2%Solar

Contracted <1%

Coal Owned29%

Natural Gas/Other

Owned4%

Natural Gas/Other Contracted

12%

31% Carbon-Free

SOUTH DAKOTA2018 ELECTRIC GENERATION PORTFOLIO

BASED ON MWH OF OWNED AND LONG-TERM CONTRACTED RESOURCES

Wind Owned 19%

Wind Contracted

12%

Coal Owned66%

Natural Gas/Other

Owned3%

2019 Community Works Report | 5

Page 6: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

OUR COMMUNITIESNorthwestern Energy is the electric provider in 318 communities in Montana, South Dakota and Yellowstone Park in Wyoming, and the gas provider in 180 communities in Montana, South Dakota and Nebraska. We care deeply about being a valued partner to the communities we serve.

In 2018, we contributed more than $1.7 million in support of our communities through local charitable donations and sponsorship, economic development opportunities, United Way, chambers of commerce, scholarships, professional association dues and employee volunteer efforts.

VOLUNTEERISMNorthWestern Energy encourages all employees to be active members of their community. We sponsor employee volunteerism by offering paid time off for volunteer activities. Employees can also earn grant money for the organizations they serve through the Employee Volunteer Program.

Some of our employee volunteer projects from 2018 include:

NorthWestern Energy is proud to supply electricity to Yellowstone National Park.

SPIRIT OF SERVICE

DAYUnited Way DAY OF CARING

TREE PLANTINGBUTTE

CARESClothing Drive

Montana FOLK Festival South Dakota

STATE FAIR

Storybook Land

FESTIVALGirl Scout

GOLD AWARD

Habitat for Humanity

BUILD DAYSpecial Olympics

POLAR PLUNGEFORK & SPOON Community Café

TRAILBUILDING

Special Olympics Montana Summer

STATE GAMES

BEYOND

THEDAM

6 | 2019 Community Works Report

Page 7: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

$119,800grants awarded to nonprofits through the

Employee Volunteer Program

184the number of nonprofits that received grants

through the Employee Volunteer Program

Journeyman Lineman Josh S. volunteers regularly with 4-H. NorthWestern Energy donates grant money to organizations when employees spend a certain number of hours volunteering.

When employees volunteer their time with an organization, NorthWestern Energy donates grant funds to that organization. Depending on the amount of time an employee volunteers, NorthWestern will donate up to $400 annually to each organization an employee serves.

2019 Community Works Report | 7

Page 8: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

CHARITABLE DONATIONS, ECONOMIC DEVELOPMENT AND LOCAL SPONSORSHIP

Charitable Donations

SponsorshipsEconomic

DevelopmentUnited Way

company match

MontanaBillings, Lewistown $75,610 $30,960 $9,687 $5,109

Bozeman $60,856 $56,094 $10,095 $1,340

Butte, Anaconda $46,700 $82,794 $5,500 $17,765

Great Falls, Havre $70,018 $20,474 $20,458 $6,721

Helena $42,178 $23,010 $7,714 $2,292

Missoula, Hamilton, Kalispell $74,157 $63,090 $14,661 $2,796

Statewide Initiatives $17,000 $68,836 $132,785

Hydro initiatives $5,000

South DakotaAberdeen $21,630 $6,733 $395 $1,042

Brookings $15,000 $4,885 $600

Huron $20,643 $10,321 $2,850 $3,401

Mitchell $17,813 $6,981 $14,239 $390

Sioux Falls $18,159 $8,232 $2,850 $18,318

Yankton $15,850 $10,384 $1,000 $445

Statewide Initiatives $5,000 $52,750 $67,600

NebraskaGrand Island $11,024 $10,775 $3,000 $397

Kearney $7,363 $2,200

North Platte $6,155 $2,557 $150

Statewide Initiatives $9,750 $200

Total $530,156 $470,826 $293,784 $60,016

A group of Sioux Falls, S.D. employees fills sandbags in preparation for spring flooding of the Skunk Creek and Big Sioux River. Seven volunteers filled more than 300 sandbags in an hour.

8 | 2019 Community Works Report

Page 9: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

$180,048

Total United Way Contribution for 2018

ASSOCIATIONS AND DUES

$128,039paid to state and local chambers

of commerce in 2018

$113,018paid in employee association

dues in 2018

$293,784contributed to economic

development in 2018

$103,250given to institutions of higher

education to fund scholarships

$120,032donated by

employees out of their own pockets

$60,016Company

match

$4.5 MILLION Total state and tribal assistance

in MT in 2018

$2.2 MILLION Total state and tribal assistance

in SD in 2018

$1.1 MILLION Total state assistance in NE in 2018

LOW-INCOME ASSISTANCEWe work closely with the federal Low Income Energy Assistance programs to provide critical short-term aid

to our community’s most vulnerable citizens.

2019 Community Works Report | 9

Page 10: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

PROPERTY TAXESAs a local company, we are proud that our tax dollars go to support local and state government services for the people of Montana, Nebraska and South Dakota.

MontanaCounty/Description Total TaxAnaconda-Deer Lodge 6,648,209 Beaverhead 1,919,728 Big Horn 1,179,495 Blaine 1,753,737 Broadwater 1,428,411 Butte-Silver Bow 11,750,110 Carbon 2,137,477 Cascade 20,464,290 Chouteau 1,236,035 Fergus 1,521,170 Flathead 2,827,085 Gallatin 15,650,484 Glacier 4,048,510 Golden Valley 482,458 Granite 1,260,593 Hill 2,784,206 Jefferson 2,482,025 Judith Basin 891,052 Lake 381,576 Lewis & Clark 14,281,311 Liberty 344,476 Madison 2,257,054 Meagher 852,621 Mineral 883,302 Missoula 14,849,333 Musselshell 617,553 Park 2,837,636 Phillips 538,036 Pondera 997,197 Powell 2,672,481 Ravalli 3,699,711 Rosebud 3,939,624 Sanders 3,674,624 Stillwater 3,560,698 Sweet Grass 997,678 Teton 1,405,791 Toole 1,325,348 Treasure 150,186 Valley 713,602 Wheatland 942,477 Yellowstone 14,570,789 Montana OtherCity of Bozeman 37,614 City of Dillon 682 City of Billings 3,890 Blackfeet Loop & Possessory Tax 344,522 Crow Tribe Railroad & Utility Tax 198,146 Fort Peck Tribe Utility Tax * 289 Canadian Montana Pipeline 17,680 Montana Rail Link 1,766 Battle Creek - Wells (100%) 4,334 Bear Paw - Wells (100%) 19,675 Bear Paw South - Wells (100%) 45,413 Two Dot Wind (NWE portion) 135,152 Montana Grand Total 157,767,344

South DakotaCounty Total Tax Aurora 24,482 Beadle 704,988 Bon Homme 87,943 Brookings 107,806 Brown 1,015,196 Brule 57,411 Charles Mix 94,023 Clark 86,366 Codington 33,385 Davison 391,456 Day 88,550 Deuel 29,390 Douglas 42,003 Edmunds 13,488 Faulk 44,182 Grant 366,530 Hamlin 32,777 Hand 21,932 Hanson 20,748 Hughes 11,430 Hutchinson 159,629 Hyde 45,455 Jerauld 12,570 Kingsbury 29,512 Lake 56,648 Lincoln 86,014 Marshall 2,726 McCook 8,441 Miner 7,152 Roberts 1,756 Sanborn 44,068 Spink* 228,005 Turner 46,871 Yankton 348,436 South Dakota Grand Total 4,351,367

South Dakota Wind TaxTax Type Total TaxWind Gross Receipts Tax 130,775 Nameplate Capacity Tax 238,650 South Dakota Wind Grand Total 369,425

Note: The State of SD allocates the wind taxes to the counties based on tower location. NWE’s towers (43) are located in Bon Homme (8), Charles Mix (19) and Hutchinson (16).

NebraskaCounty Total TaxBuffalo 167,999

Hall 289,150

Kearney 1,903

Lincoln 151,340

Merrick 1,084

Nebraska Grand Total 611,475

* Bills being paid under protest.

10 | 2019 Community Works Report

Page 11: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

OUR COMMITMENT TO SAFETYEvery year, NorthWestern Energy promotes pipeline awareness and safety through mailings, trainings, booklets, flyers and education materials.

We also conduct on-going inspections of our natural gas infrastructure, looking for signs of leaks and corrosion.

NorthWestern owns and operates 9,373 miles of natural gas pipelines. The safety and integrity of these pipelines is our top priority.

$1.6

MILLIONspent annually to deliver our safety messages

to audiences of all ages

WHITE Proposed Excavation

PINK Temporary Survey

Markings

RED Electric Power Lines, Cables, Conduit and

Lighting Cables

YELLOW Gas, Oil, Steam,

Petroleum or Gaseous Materials

ORANGE Communication, Alarm or Signal Lines, Cables or

Conduit

PURPLE Reclaimed Water,

Irrigation and Slurry Lines

BLUE Potable Water

GREEN Sewers and Drain

Lines

Know what’s below by the different colored flags, stakes or paint.

After calling 811, utility lines are marked using color-coded flags.

2019 Community Works Report | 11

Page 12: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

OUR ENVIRONMENTAL STEWARDSHIPNorthWestern Energy is committed to protecting the environment. We are vigilant in monitoring the impacts of our operations on the environment and managing the natural resources under our stewardship.

In 2019, NorthWestern Energy is providing $1.59 million to support 57 fisheries, wildlife and habitat improvement projects within the 550‑mile corridor of the Madison‑Missouri River from Yellowstone National Park to the headwaters of Fort Peck Reservoir.

RECREATIONNorthWestern participates in a public-private partnership to provide public recreation opportunities along the Missouri and Madison rivers. The Missouri-Madison River Fund is a $6.7 million trust fund for public recreation, the earnings from which fund recreation improvement projects.

Since 2007, the River Fund has awarded nearly $4.5 million that NorthWestern has matched partially with a $1.25 million contribution in support of 126 projects. In addition to this amount, agencies and private partners have made contributions of $3.4 million resulting in more than $9 million in recreation enhancements in the Missouri-Madison Corridor.

In April 2018, NorthWestern Energy purchased the Two Dot Wind Farm, a 9.7-megawatt wind project in central Montana. In addition to lowering customers’ costs, the purchase also complies with the Community Renewable Energy Project component of Montana’s Renewable Portfolio Standard.

12 | 2019 Community Works Report

Page 13: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

2019 RIVER FUND PROJECTS INCLUDE: 6 Replace the ADA-access ramp to the administrative building at Devil’s Elbow Recreation Area on Hauser Lake.

6 Replace the boat ramp at Rainbow Point Boat Launch on Hebgen Lake.

6 Install a shade sail over an outdoor use area at the Lewis & Clark Interpretive Center in Great Falls.

6 Remove a large, unstable dock piling at the White Sandy Recreation Area boat launch.

6 Construct a bridge to allow for storm water drainage on the River’s Edge Trail in Great Falls.

6 Purchase an off-highway utility vehicle for Montana Fish, Wildlife & Parks to perform patrols and visitor rescue on a conservation area in Great Falls.

6 Repair the canoe launch and extend the launch dock at West Bank Park in Great Falls.

6 Add gravel to new campsites at Spring Creek Campground on Hebgen Lake.

6 Construct an ADA-accessible fishing pier at Black Sandy State Park on Hauser Lake.

6 Repair damage to the Roe Island wall and sidewalk at Giant Springs State Park in Great Falls.

6 Install wildlife viewers at West Bank Park in Great Falls.

6 Construct a host site in the camp area at Craig Fishing Access Site on the Missouri River.

6 Support site clean-up and road rehabilitation at Ulm Bridge Fishing Access Site on the Missouri River.

6 Purchase and permanently display a dugout canoe at Missouri Headwaters State Park.

The O’Dell Creek restoration and preservation project, near Ennis, Mont., has been a long-time initiative of area ranchers. With the financial support of NorthWestern Energy, the creek now delivers cleaner, colder water into the Madison River and provides important wetlands for birds and fish.

2019 Community Works Report | 13

Page 14: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

COMMUNITY PROJECTSLED StreetlightsNorthWestern Energy is in the process of replacing existing street lights with new, energy-efficient LED lights. We will replace some 43,000 company-owned streetlights in Montana with LED lights by 2022.

LED streetlights use about 50 percent less electricity than traditional high-pressure sodium lights, and last two to three times longer. NorthWestern Energy will recycle all parts of the old streetlights, including the metal heads, the glass lenses and the bulbs, which contain mercury.

For more information on all our environmental programs and initiatives, see our Environmental Stewardship Report.

Missoula schools solar projectNorthWestern Energy is working with Missoula County Public Schools and the city of Missoula to install solar panels at Hellgate, Sentinel, Big Sky and Willard high schools. The $1 million pilot project, to be entirely funded and maintained by NorthWestern Energy, is part of the company’s large-scale studies around creating renewable energy solutions that can meet the demands of the national energy grid.

MCPS students and teachers will play a key part in these studies, providing for hands-on learning experiences that will prepare students for jobs and help ensure a sustainable future.

Smart metersNorthWestern Energy is in the process of installing approximately 65,000 electric smart meters in South Dakota and 95,000 smart gas modules in South Dakota and Nebraska. Smart meters meet changing customer expectations by providing two-way communications between electric and gas meters and NorthWestern Energy, allowing better management of individual customer’s energy needs and overall improved customer service. They also allow for quick detection of outages and faster responses to those outages.

Photos: Big Sky, Sentinel, Willard or Hell-gate

Bozeman Solar

Journeyman lineman Spencer P. installs an LED yard light. NorthWestern Energy will replace some 43,000 company-owned streetlights in Montana with LED lights by 2022.

14 | 2019 Community Works Report

Page 15: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

ENERGY CONSERVATION OVERVIEWFor the past 40 years, NorthWestern Energy has worked with customers to promote wise and efficient use of electricity and natural gas. We offer programs and energy efficiency information under the NorthWestern Energy sub-brand of Efficiency Plus, or E+. Current programs include rebates and custom incentives for qualifying commercial and industrial facilities, and free energy audits for qualifying homes and small businesses.

Through a contract with the Montana Department of Public Health and Human Services, homes of income-qualified customers receive free weatherization services. A few small-scale renewable projects at non-profit and government/public buildings also receive incentives funded through the USBC.

61,927,680 KWH total electric energy savings in 2018*

868,699 THERMStotal gas energy savings in 2018*

$13.7 MILLIONsaved through energy conservation*

*We base all savings and expenditures on a July 1, 2017 – June 30, 2018, tracker year to Montana. Currently, we do not offer energy efficiency program to our South Dakota or Nebraska customers and rebates are not available to Montana residential customers. Savings and expenditures include Montana small‑scale renewables, energy audits for homes and businesses, and low‑income weatherization funded through the Universal System Benefits (USB) program. We fund additional Montana activities for local conservation, market transformation, research and development, and low‑income bill and energy assistance with USB dollars but those expenditures are not included in this total.

NorthWestern Energy offers free Home Energy Audits to our Montana customers. Energy auditors perform appliance inspections, look for areas of air leakage and offer customers education on how lifestyle and habits affect energy use. Qualifications apply. Montana customers only.

2019 Community Works Report | 15

Page 16: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

RELIABILITYWhile power outages are unavoidable, we are dedicated to keeping the disruption to a minimum. As such, we monitor and measure the frequency and duration of outages through industry-accepted performance standards called SAIFI and SAIDI.

2015 2016 2017 2018

SAIFI (occurrences) 1.214 1.080 1.289 1.08

SAIDI (minutes) 123.15 107.09 133.49 101.98

Avg. wait (CAIDI) (minutes to get power back)

101.42 99.18 103.54 94.12

OUR RELIABILITY TERMS:

SAIFI (System Average Interruption Frequency Index) - The number of sustained outages (a power outage lasting longer than 5 minutes) experienced by the average customer in a year.

SAIDI (System Average Interruption Duration Index) - The cumulative duration of sustained outages experienced by the average customer in a year.

ADVISORY PANELSNorthWestern Energy actively seeks collaborative input from stakeholders.

In early 2018, we formed the Customer Vision Stakeholder Group to discuss the Montana rate review and the vision for success for NorthWestern Energy in coming years. The group includes representatives from renewable energy groups, the Montana Public Service Commission, the Montana Chamber of Commerce, state and local government, and businesses from across the state.

NorthWestern launched a comprehensive community engagement process to select a site and design for a new substation in the Big Sky service area. That process resulted a site and substation design that met the community’s concerns and desires, as well as the company’s needs.

No matter the weather, anytime there is a power outage, our crews respond quickly to fix the problem and keep disruption to a minimum.

16 | 2019 Community Works Report

Page 17: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

We have continued five years of progress in residential customer satisfaction scores, with our overall customer satisfaction score increasing 14 points from 696 to 710 in 2018, as measured by J.D. Power; once again our highest score to-date.

CUSTOMER CARE

2Customer contact centers,

one in Butte, Mont. and one in Huron, S.D.

18Walk-in offices

89,400Average calls

per month

24/7Customer access for

outage or emergencies

3MIN 40SECAverage talk time

725,349Meters we read monthly,

estimating fewer than 2 percent

2019 Community Works Report | 17

Page 18: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

ENERGY FOR GROWING COMMUNITIESEach year, we measure the requests we receive for new electric and natural gas service. We believe the number of new connects is a direct reflection of activity in residential and commercial building markets.

0

200

400

600

800

1000

1200

1400

1600

2018

2017

2016

MissoulaHelenaGreat FallsButteBozemanBillings

MONTANAELECTRIC

NEW-CONNECTS COMPARISON

2016-2018

0

30

60

90

120

150

2018

2017

2016

YanktonMitchellHuronAberdeen

SOUTH DAKOTA ELECTRIC

NEW-CONNECTS COMPARISON

2016-2018

0

200

400

600

800

1000

1200

2018

2017

2016

MissoulaHelenaGreat FallsButteBozemanBillings

MONTANA NATURAL GAS

NEW-CONNECTS COMPARISON

2016-2018

SOUTH DAKOTA AND NEBRASKA

NATURAL GAS NEW-CONNECTS

COMPARISON 2016-2018

0

50

100

150

200

250

2018

2017

2016

YanktonNorth PlatteMitchellKearneyHuronGrand IslandBrookingsAberdeen

18 | 2019 Community Works Report

Page 19: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

Journeyman lineman Josh A. installs a new electric service at a home under construction.

2019 Community Works Report | 19

Page 20: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

OUR INVESTMENTS IN BUILDING AN ENERGY SYSTEM FOR THE FUTUREIn 2019, we expect to spend more than $335 million on projects that will maintain and enhance our energy system:

$335.8 MILLION

TOTAL ESTIMATED INVESTMENTS IN 2019

$5.6 BILLION

TOTAL COMPANY ASSETS

$4.1 BILLION

TOTAL CAPITALIZATION

$210 MILLION

TOTAL NON-PAYROLL OPERATING GENERAL AND ADMINISTRATIVE EXPENSES

We’re constantly upgrading our distribution and transmission systems to provide better reliability to our customers.

20 | 2019 Community Works Report

Page 21: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

$209.5 MILLION

2019 MT ELECTRIC INVESTMENTS*

$57 MILLION

2019 MT GAS INVESTMENTS*

$58.9 MILLION

2019 SD ELECTRIC INVESTMENTS*

$10.3 MILLION2019 SD AND NE

GAS INVESTMENTS*

$4.1BILLIONTOTAL ASSETS

IN MT

$978 MILLION

TOTAL ASSETS SD AND NE

*estimated

2019 Community Works Report | 21

Page 22: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

EMPLOYEES

GENDER**

TOTAL EMPLOYEES*

27%Total employees

73%Total employees

23%Management

38%Executive

77%Management

62%Executive

*As of January 1 for each year **As of year‑end 2018 †excludes lump sums

RETIREES

Location Number of retirees

Annual benefit payments†

Montana 1690 $24,961,289

South Dakota/ Nebraska 253 $ 2,834,067

Grand Total 1943 $ 27,795,356

TOTAL EMPLOYEES

1,220TOTAL MT EMPLOYEES

308TOTAL SD/NE EMPLOYEES

EMPLOYEES REPRESENTED BY

UNIONS

452UNION EMPLOYEES IN MT

185UNION EMPLOYEES IN

SD/NE

EMPLOYEE GROSS PAYROLL:

$149.6 MILLION

EMPLOYEE GROSS PAYROLL BY STATE:

$120.8 MILLION

MONTANA

$26.0 MILLION

SOUTH DAKOTA

$2.8 MILLION

NEBRASKA

TURNOVER RATE

0

2

4

6

8

10

20188.60%

20145.60%

20156.50%

20168.00%

20177.10%

1100

1200

1300

1400

1500

1600

1700

20191528

20151631

20161623

20171579

20181584

22 | 2019 Community Works Report

Page 23: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

HOW CAN NORTHWESTERN ENERGY HELP YOUR ORGANIZATION?Our goal is to be a leading corporate citizen in each of the diverse communities we serve.

Our Community Works Fund provides year-round support for qualified 501(c)(3) and 170(c)(2) non-profit organizations that directly serve our communities. To review qualifications and submit a grant request, visit contactus.northwesternenergy.com/CharitableGrantApp.

Our employees are always looking for opportunities to volunteer their time to strengthen our communities. Do you have a project that needs volunteers? Let us know about it and maybe we can help! Email us at [email protected].

Safety and environmental professional Dennis V. plants a tree during a NorthWestern Energy volunteer event at the Girl Scout Legacy Park in Huron, S.D.

2019 Community Works Report | 23

Page 24: COMMUNITY WORKS REPORT - northwesternenergy.com · REPORT As members of the communities we serve, NorthWestern Energy is passionate about giving back. The 2019 Community Works Report

CONTACT USCORPORATECorporate Support Office

3010 W 69th Street

Sioux Falls, SD 57108

Montana Operational Support Office

11 E Park Street

Butte, MT 59701

South Dakota/Nebraska Operational Support Office

600 Market Street West

Huron, SD 57350

CUSTOMER SERVICEMontana

(888) 467-2669

7 a.m. - 6 p.m., M-F

24/7 Emergency Service

South Dakota and Nebraska

(800) 245-6977

7 a.m. - 6 p.m., M-F

24/7 Emergency Service

To request additional copies, contact:

NorthWestern Energy

Creative Services

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