Montana Utility Officials Say Money for Low-Income
Assistance Shielded During Bankruptcy

NorthWestern Corporation officials say they are confident that the pool of money the utility has set aside for helping low-income households in Montana will be shielded in court.

Universal System Benefits (USB) money comes from an assessment added to each ratepayer's utility bill. The $8.2 million fund is paid for by NorthWestern Energy's 295,000 electric customers. This year, $1.8 million of that will go toward low-income energy assistance.

CEO Gary Drook told the Montana Public Service Commission that the funds from the USB are secure because they are in a separate account. However, according to another utility official, the funds are still part of the corporation's general fund. Pat Corcoran, NorthWestern Energy's vice president for regulatory affairs, said even though these funds are not separated from the corporate checkbook, they are safe under what is called a constructive trust. "In essence, it's protected from the bankruptcy estate, and the judge has issued an order approving that," Corcoran said.

Source: The Billings Gazette

Page Last Updated: December 7, 2005