NorthWestern Energy's Q2 2025: Navigating Contradictions in Data Center Plans and Capacity Challenges

Data center ESAs and timing, data center ramp and capacity needs, data center interest and capacity requirements, data center ramp and ESA signing timelines are the key contradictions discussed in NorthWestern Energy's latest 2025Q2 earnings call.



Earnings and Rate Recovery:
- NorthWestern Energy reported GAAP diluted EPS of $0.35 and adjusted non-GAAP diluted EPS of $0.40 for Q2 2025.
- The decline in earnings compared to the previous year was primarily due to the lack of interim rates and timing of rate decisions.

Regulatory Proceedings and Rate Updates:
- The company awaits an outcome from the Montana rate review proceeding, expected in Q4 2025, which will affect revenue recognition retroactively to May 23, 2025.
- The proceeding focuses on the recovery of the Yellowstone generating facility and the PCAM (PCCAM) base.

Data Center Expansion and Large Load Opportunities:
- NorthWestern Energy entered its third letter of intent with Quantica for a 500-plus megawatt data center developer in Montana.
- The expansion supports the company's goal of capturing data center opportunities and serving large load customers.

Wildfire Legislation and Mitigation:
- Montana Wildfire Law 490 has been passed, providing utilities with protections against strict liability for wildfire operations.
- This includes replacing strict liability with a negligence standard and a rebuttable presumption of reasonable behavior if the utility substantially follows its approved wildfire plan.

Energy Acquisition and Transmission Investments:
- NorthWestern Energy completed the acquisition of Energy West and Cut Bank gas facilities, adding 33,000 customers and 43 employees.
- The company also received a CPCN (Certificate of Public Convenience and Necessity) for regional transmission investments, enhancing certainty for future investments.