NorthWestern Energy Group, Inc.NWE
NorthWestern Energy Group, Inc. Revenue Disclosure
| (21) Revenue from Contracts with Customers | ||||||||||||||
Accounting Policy
Our revenues are primarily from tariff based sales. We provide gas and/or electricity to customers under these tariffs without a defined contractual term (at-will). As the revenue from these arrangements is equivalent to the electricity or gas supplied and billed in that period (including estimated billings), there will not be a shift in the timing or pattern of revenue recognition for such sales. We have also completed the evaluation of our other revenue streams, including those tied to longer term contractual commitments. These revenue streams have performance obligations that are satisfied at a point in time, and do not have a shift in the timing or pattern of revenue recognition.
Customers are billed monthly on a cycle basis. To match revenues with associated expenses, we accrue unbilled revenues for electric and natural gas services delivered to customers, but not yet billed at month-end.
Nature of Goods and Services
We currently provide retail electric and natural gas services to three primary customer classes. Our largest customer class consists of residential customers, which include single private dwellings and individual apartments. Our commercial customers consist primarily of main street businesses, and our industrial customers consist primarily of manufacturing and processing businesses that turn raw materials into products.
Electric Segment - Our regulated electric utility business primarily provides generation, transmission, and distribution services to our customers in our Montana and South Dakota jurisdictions. We recognize revenue when electricity is delivered to the customer. Payments on our tariff based sales are generally due in 20-30 days after the billing date.
Natural Gas Segment - Our regulated natural gas utility business primarily provides production, storage, transmission, and distribution services to our customers in our Montana, South Dakota, and Nebraska jurisdictions. We recognize revenue when natural gas is delivered to the customer. Payments on our tariff based sales are generally due in 20-30 days after the billing date.
Disaggregation of Revenue
The following tables disaggregate our revenue for the twelve months ended by major source and customer class (in thousands):
| December 31, 2025 | Electric | Natural Gas | Total | ||||||||||||||
| Montana | 406,643 | 120,830 | 527,473 | ||||||||||||||
| South Dakota | 77,894 | 28,948 | 106,842 | ||||||||||||||
| Nebraska | — | 25,733 | 25,733 | ||||||||||||||
| Residential | 484,537 | 175,511 | 660,048 | ||||||||||||||
| Montana | 408,530 | 68,722 | 477,252 | ||||||||||||||
| South Dakota | 120,108 | 21,574 | 141,682 | ||||||||||||||
| Nebraska | — | 13,784 | 13,784 | ||||||||||||||
| Commercial | 528,638 | 104,080 | 632,718 | ||||||||||||||
| Industrial | 43,128 | 2,439 | 45,567 | ||||||||||||||
| Lighting, governmental, irrigation, and interdepartmental | 34,510 | 1,350 | 35,860 | ||||||||||||||
| Total Retail Revenues | 1,090,813 | 283,380 | 1,374,193 | ||||||||||||||
| Regulatory Amortization | 58,265 | (305) | 57,960 | ||||||||||||||
| Transmission | 111,024 | — | 111,024 | ||||||||||||||
| Transportation, wholesale and other | 9,854 | 57,528 | 67,382 | ||||||||||||||
| Total Revenues | $ | 1,269,956 | $ | 340,603 | $ | 1,610,559 | |||||||||||
| December 31, 2024 | Electric | Natural Gas | Total | ||||||||||||||
| Montana | 398,790 | 110,215 | 509,005 | ||||||||||||||
| South Dakota | 70,012 | 26,884 | 96,896 | ||||||||||||||
| Nebraska | — | 21,205 | 21,205 | ||||||||||||||
| Residential | 468,802 | 158,304 | 627,106 | ||||||||||||||
| Montana | 408,977 | 59,925 | 468,902 | ||||||||||||||
| South Dakota | 111,813 | 18,069 | 129,882 | ||||||||||||||
| Nebraska | — | 11,432 | 11,432 | ||||||||||||||
| Commercial | 520,790 | 89,426 | 610,216 | ||||||||||||||
| Industrial | 46,637 | 1,041 | 47,678 | ||||||||||||||
| Lighting, governmental, irrigation, and interdepartmental | 32,811 | 1,352 | 34,163 | ||||||||||||||
| Total Retail Revenues | 1,069,040 | 250,123 | 1,319,163 | ||||||||||||||
| Regulatory Amortization | 24,908 | 19,017 | 43,925 | ||||||||||||||
| Transmission | 97,052 | — | 97,052 | ||||||||||||||
| Transportation, wholesale and other | 9,701 | 44,057 | 53,758 | ||||||||||||||
| Total Revenues | $ | 1,200,701 | $ | 313,197 | $ | 1,513,898 | |||||||||||
| December 31, 2023 | Electric | Natural Gas | Total | ||||||||||||||
| Montana | 408,341 | 136,097 | 544,438 | ||||||||||||||
| South Dakota | 67,888 | 36,638 | 104,526 | ||||||||||||||
| Nebraska | — | 35,539 | 35,539 | ||||||||||||||
| Residential | 476,229 | 208,274 | 684,503 | ||||||||||||||
| Montana | 431,357 | 73,721 | 505,078 | ||||||||||||||
| South Dakota | 103,194 | 25,869 | 129,063 | ||||||||||||||
| Nebraska | — | 22,114 | 22,114 | ||||||||||||||
| Commercial | 534,551 | 121,704 | 656,255 | ||||||||||||||
| Industrial | 45,958 | 1,392 | 47,350 | ||||||||||||||
| Lighting, governmental, irrigation, and interdepartmental | 32,756 | 1,681 | 34,437 | ||||||||||||||
| Total Retail Revenues | 1,089,494 | 333,051 | 1,422,545 | ||||||||||||||
| Regulatory Amortization | (105,608) | (25,012) | (130,620) | ||||||||||||||
| Transmission | 78,436 | — | 78,436 | ||||||||||||||
| Transportation, wholesale and other | 6,511 | 45,271 | 51,782 | ||||||||||||||
| Total Revenues | $ | 1,068,833 | $ | 353,310 | $ | 1,422,143 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.