Long-Term Debt and Capital Leases

12 Months Ended

Dec. 31, 2024

Long-Term Debt and Lease Obligation [Abstract]

(11) Long-Term Debt and Finance Leases

Long-term debt and finance leases consisted of the following (in thousands):


		December 31,
	Due	2024		2023
Unsecured Debt:
Unsecured Revolving Line of Credit	2028	413,000		318,000
Secured Debt:
Mortgage bonds—
South Dakota—5.01%	2025	64,000		64,000
South Dakota—2.80%	2026	60,000		60,000
South Dakota—2.66%	2026	45,000		45,000
South Dakota—5.55%	2029	33,000		—
South Dakota—3.21%	2030	50,000		50,000
South Dakota—5.57%	2033	31,000		31,000
South Dakota—5.42%	2033	30,000		30,000
South Dakota—5.75%	2034	7,000		—
South Dakota—4.26%	2040	70,000		70,000
South Dakota—4.15%	2042	30,000		30,000
South Dakota—4.85%	2043	50,000		50,000
South Dakota—4.22%	2044	30,000		30,000
South Dakota—4.30%	2052	20,000		20,000
Montana—1.00%	2024	—		100,000
Montana—5.01%	2025	161,000		161,000
Montana—3.11%	2025	75,000		75,000
Montana—3.99%	2028	35,000		35,000
Montana—3.21%	2030	100,000		100,000
Montana—5.56%	2031	175,000		—
Montana—5.57%	2033	239,000		239,000
Montana—5.71%	2039	55,000		55,000
Montana—4.15%	2042	60,000		60,000
Montana—4.85%	2043	15,000		15,000
Montana—4.176%	2044	450,000		450,000
Montana—4.11%	2045	125,000		125,000
Montana—4.03%	2047	250,000		250,000
Montana—3.98%	2049	150,000		150,000
Montana—4.30%	2052	40,000		40,000
Pollution control obligations—
Montana—3.88%	2028	144,660		144,660
Other Long Term Debt:
Discount on Notes and Bonds and Debt Issuance Costs, Net	—	(12,367)		(13,075)
Total Long-Term Debt		$	2,995,293	$	2,784,585
Less current maturities (including associated debt issuance costs)		(299,950)		(99,950)
Total Long-Term Debt, Net of Current Maturities		$	2,695,343	$	2,684,635

Finance Leases:
Total Finance Leases	2026	$	5,461	$	8,799
Less current maturities		(3,596)		(3,338)
Total Long-Term Finance Leases		$	1,865	$	5,461

Secured Debt

First Mortgage Bonds and Pollution Control Obligations

The South Dakota First Mortgage Bonds are a series of general obligation bonds issued under our South Dakota indenture. These bonds are secured by substantially all of our South Dakota and Nebraska electric and natural gas assets. The South Dakota indenture was transferred from NW Corp to NWE Public Service upon the completion of the holding company reorganization on January 1, 2024.

The Montana First Mortgage Bonds are a series of general obligation bonds issued under our Montana indenture. These bonds are secured by substantially all of our Montana electric and natural gas assets.

On March 30, 2023, we issued and sold $239.0 million aggregate principal amount of Montana First Mortgage Bonds (the bonds) at a fixed interest rate of 5.57 percent maturing on March 30, 2033. On this same day, we issued and sold $31.0 million

aggregate principal amount of South Dakota First Mortgage Bonds at a fixed interest rate of 5.57 percent maturing on March 30, 2033. On May 1, 2023, we issued and sold an additional $30 million aggregate principal amount of South Dakota First Mortgage Bonds at a fixed interest rate of 5.42 percent maturing on May 1, 2033. These bonds were issued in transactions exempt from the registration requirements of the Securities Act of 1933. Proceeds were used to repay a portion of our outstanding borrowings under our revolving credit facilities and for other general corporate purposes.

On June 29, 2023, the City of Forsyth, Rosebud County, Montana issued $144.7 million principal amount of Pollution Control Revenue Refunding Bonds (2023 Pollution Control Bonds) on our behalf. The 2023 Pollution Control Bonds were issued at a fixed interest rate of 3.88 percent maturing on July 1, 2028. The proceeds of the issuance were loaned to us pursuant to a Loan Agreement and were deposited directly with U.S. Bank Trust Company, National Association, as trustee, for the redemption of the 2.00 percent, $144.7 million City of Forsyth Pollution Control Revenue Refunding Bonds due on August 1, 2023 that had previously been issued on our behalf. Pursuant to the Loan Agreement, we are obligated to make payments in such amounts and at such times as will be sufficient to pay, when due, the principal and interest on the 2023 Pollution Control Bonds. Our obligations under the Loan Agreement are secured by delivery of a like amount of our Montana First Mortgage Bonds, which are secured by our Montana electric and natural gas assets. So long as we are making payments under the Loan Agreement, no payments under these mortgage bonds will be due. The 2023 Pollution Control Bonds were issued in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended.

On March 28, 2024, NW Corp issued and sold $175.0 million aggregate principal amount of Montana First Mortgage Bonds at a fixed interest rate of 5.56 percent maturing on March 28, 2031. These bonds were issued in transactions exempt from the registration requirements of the Securities Act of 1933. Proceeds were used to redeem NW Corp's $100.0 million of Montana First Mortgage Bonds due this year and for other general utility purposes. The bonds are secured by NW Corp's electric and natural gas assets associated with its Montana utility operations.

On March 28, 2024, NWE Public Service issued and sold $33.0 million aggregate principal amount of South Dakota First Mortgage Bonds at a fixed interest rate of 5.55 percent maturing on March 28, 2029, and $7.0 million aggregate principal amount of South Dakota First Mortgage Bonds at a fixed interest rate of 5.75 percent maturing on March 28, 2034. These bonds were issued in transactions exempt from the registration requirements of the Securities Act of 1933. Proceeds were used for general utility purposes. The bonds are secured by NWE Public Service's electric and natural gas assets associated with its South Dakota and Nebraska utility operations.

As of December 31, 2024, we were in compliance with our financial debt covenants.

Maturities of Long-Term Debt

The aggregate minimum principal maturities of long-term debt and finance leases, during the next five years are $303.6 million in 2025, $106.9 million in 2026, $592.7 million in 2028, and $33.0 million in 2029.