The independent registered public accounting firm provided an opinion on the financial statements of NorthWestern Energy Group, Inc. for the years ending December 31, 2024 and 2023.
The financial statements present the financial position, results of operations, and cash flows of the company in conformity with US accounting principles.
Audits were conducted to assess risks of material misstatements in the financial statements, with a focus on regulatory matters impacting the financial statements.
Opinion on Financial Statements
The financial statements present fairly, in all material respects, the financial position of NorthWestern Energy Group, Inc. for the years ending December 31, 2024 and 2023.
Internal Control Report
The company's internal control over financial reporting as of December 31, 2024 received an unqualified opinion, indicating effective controls were in place.
Critical Audit Matter
The impact of rate regulation on financial statements, as detailed in ASC 980, Regulated Operations, was identified as a critical audit matter during the audits.
- The company's financial effects of regulation are recorded in accordance with ASC 980, leading to the recognition of regulatory assets or liabilities based on the expectation of cost recovery in future rates.
- Rate regulation by federal and state utility regulatory agencies plays a significant role in the company's electric and natural gas distribution rates in Montana, South Dakota, and Nebraska.
- Continuous assessment of the probability of recovery of regulatory assets and obligations related to regulatory liabilities is crucial for the company's financial stability.
The audit report provides assurance to shareholders and the board of directors regarding the financial position and operations of NorthWestern Energy Group, Inc. The company's compliance with accounting principles and effective internal controls reflects a commitment to transparency and financial integrity.