HELENA - The state Public Service Commission will hold a hearing Monday, on whether to make permanent a 2% increase in natural gas and electric delivery rates in Montana for NorthWestern Energy.

The PSC approved the increase on a temporary basis effective January 1st. NorthWestern agreed to hold its increase to 2%, much smaller than it originally requested, in a deal negotiated in December with the Montana Consumer Counsel.

It's the first increase requested by the utility since 1998 to cover the cost of delivering power and fuel to customers. Under the increase, the average residential customer is paying about $18 more a year for electricity and $25 a year more for natural gas.

NorthWestern serves 320,000 electric and natural gas customers in Montana.