NARUC: 120th Annual
Convention
Bob Ro e
w
President and CEO
NorthWestern Energy
Outline
The NRDC – EEI challenge
Who we are at NorthWestern Energy
Where we’re going – investment-in-service
Investment is critical
Di t ib ti
»
s r u on
» Transmission
» Supply and demand-side
T h
l
» ec no ogy
Alignment of interests
Technical versus leadership challenges
Conclusion
Appendix: Sizing the task – the EPRI-EEI Joint Energy
Effi i
St d
2
c ency u y
NRDC – EEI Letter to NARUC (11-18-08)
“Urgent” goal of helping all energy users exploit cost-
effective efficiency opportunities
For utilities, goal of “all cost effective energy efficiency”
» Cost recovery for prudent investment
» Earnings opportunity tied to verified success in delivering
cost-effective savings
» Kept whole for authorized fixed power costs as sales
l
d
li
l ti
l
vo umes ec ne re a ve y
» “Durable business case” based on
♦ Cost recovery
♦ Performance-based earning opportunity tied to results
♦ Utilit k
t h l
f
th
i d fi
d
t
y ep w o e or au or ze xe cos s
Significantly enhanced investment in smart meters and
smart grid, focused on
» New energy management tools to customers
» Increased efficiency
» Supporting new technology
RD&D
F d
l
3
» e era
» Utility-based, with regulatory support
Who We Are at NorthWestern Energy
Approximately 650,000 customers
» 388,100 electric; 261,500 natural gas
Approximately 123,000 square miles
of service territory in Montana,
Nebraska and South Dakota
Total Assets: $2,340 MM
Electric transmission lines
Natural gas distribution lines
Supplier-owned electric or natural gas lines
Electric generating plant
Total Capitalization: $1,445 MM
Total Employees: 1,400
4
Natural gas storage fields
Natural gas compressor stations
Where We’re Going: Investment-in-Service
Focused on our utility operations
» Regulated by three states and Federal Energy Regulatory Commission
Focused on our customers
» We succeed by providing our customers, large and small, high quality service
Focused