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HELENA - NorthWestern Energy and a state consumer office Friday agreed to support a 2 percent rate increase in the company’s electric and natural gas rates n almost two-thirds less than the company requested five months ago.

The proposed settlement of NorthWestern’s Montana rate case also includes a promise from the company to provide 21 megawatts of electricity from its Colstrip plant at below-market rates for consumers for six-and-a-half years.

“I think Montana ratepayers come out ahead in the settlement,” said Montana Consumer Counsel Bob Nelson, whose office negotiated the proposal. “While there is a rate increase, it’s about a third of the requested amount, and it will be offset (further) in the future.”

NorthWestern spokeswoman Claudia Rapkoch said the company sees a benefit in getting the case settled quickly, thus avoiding a drawn-out battle before state regulators.

“There is a lot of give-and-take (in the settlement talks), and we felt this was a good result for consumers and a good result for the company,” she said.

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