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The Montana Public Service Commission will recommend that the proposed sale of NorthWestern Energy to Babcock & Brown Infrastructure Limited of Australia be denied because the sale is too risky. The commission unanimously voted against the proposed $2.2 billion deal. Commission chairman Greg Jergeson said by telephone Wednesday that the MPSC staff will begin drafting a final order against the sale and it likely will be presented for a vote in late June or early July. NorthWestern then will have 10 days to make a motion for reconsideration. The company also will have the option to appeal in court. Jergeson said the risk of higher rates for consumers was a primary concern. The MPSC decided the benefits of the sale would go to the companies while consumers would be saddled with potential liabilities. NorthWestern Corp. expressed disappointment in the decision and announced that it will decide what action to take after the commission finalizes its position. "We are obviously disappointed by this development," said Mike Hanson, NorthWestern's president and chief executive officer. "However, we will wait until the written order is issued before deciding on our next steps." NorthWestern and BBI announced in April 2006 that they had reached an acquisition agreement.
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