UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility

Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940

1.Name and Address of Reporting Person* Gannon Robert P	2.Issuer Name and Ticker or Trading Symbol The Montana Power Company (MTP)				6. Relationship of Reporting Person(s) to Issuer (Check all applicable). ___X______Director __________10% owner ____ X_____Officer(give __________Other(specify title below) below) Chairman of Board, President & CEO
(Last) (First) (Middle) 40 E. Broadway Street	3.I.R.S. Identification Number of Reporting Person, if an entity. (Voluntary)	4.Statement for Month/Year 12/31/2001
(Street) Butte MT 59701		5.If Amendment Date of Original (Month/Year)			7.Individual or Joint/Group Reporting (Check applicable line) ___ X__ Form Filed by One Reporting Person _____Form filed by More than One Reporting Person
(City (State) (Zip)	TABLE I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
Title of Security (Instr.3)	2.Transaction Date (Month/ Day/ Year)	3.Transaction Code (Instr. 8)	4.Security Acquired (A) or Disposed of (D) (Instr. 3, 4, & 5)				5.Amount of Securities Beneficially Owned at End of Issuers Fiscal Year (Instr. 3 & 4)	6.Owner-ship Form: Direct (D) or Indirect (I) (Instr. 4)	7.Nature of Indirect Beneficial Ownership (Instr. 4)
Title of Security (Instr.3)	2.Transaction Date (Month/ Day/ Year)	3.Transaction Code (Instr. 8)	Amount	or (D)		Price			7.Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock							13,557.229	D
Common Stock							(1) 18,988.0751	I	BY TTEE RET & SAV PLAN (401K)
Common Stock	3/13/01	P	3,800	A		$15.10		I	HELD BY SPOUSE
Common Stock	3/13/01	P	1,100	A		$15.11		I	HELD BY SPOUSE
Common Stock	3/13/01	P	1,000	A		$15.08	39,338.691	I	HELD BY SPOUSE
Common Stock							75	I	HELD BY SON
Common Stock							125	I	HELD BY DAUGHTER

*If the form is filed by more than one reporting person, see Instruction 4(b)(v).

Potential persons who are to respond to the collection of

information contained in this form are not required to respond

unless the form displays a currently valid OMB control number.

FORM 5 (continued)

TABLE II - Derivative Securities Acquired, Disposed of, or Beneficially Owned

(e.g., puts, calls, warrants, options, convertible securities)

1.Title of Derative Security

(Instr.3)

2.Conver-sion or

Exercise

Price of

Deri-vative

Security

3.Trans-action

Date

(Month/

Day/

Year)

4.Trans-

action

Code

(Instr. 8)

5.Number of Derivative Securities Acquired (A) or Disposed of (D)

(Instr.3,4,&5)

6.Date Exercisable and Expiration Date

(Month/Day/Year)

7.Title and Amount of

Underlying Securities

(Instr. 3 & 4)

8.Price

Derivative

Security

(Instr. 5)

9.Number

Deriv-

ative

Secur-

ities

Benef-

icially

Owned

at End

Year

(Instr.4)

10.Owner-

ship

of Deriv-

ative

Security:

Direct

(D) or

Indirect

(I)

(Instr.4)

11.Nature of Indirect

Beneficial Ownership

(Instr.4)

(A)

(D)

Date

Exer-cisable

Expira-

tion

Date

Title

Amount or

Number of Shares

Stock Option

$32.50

(2)

08/21/10

Common Stock

107,100

Stock Option

$19.1719

09/01/00

09/01/08

Common Stock

84,000

Stock Option

$35.3594

06/21/01

06/21/09

Common Stock

84,000

Stock Option

$27.5625

10/25/01

10/25/09

Common Stock

55,500

Stock Option

$27.5625

(3)

10/25/09

Common Stock

75,300

Stock Option

38.6875

06/26/02

06/26/10

Common Stock

84,000

Explanation of Responses:


**Signature of Reporting Person		Date

**Intentional misstatements or omissions of facts constitute Federal Criminal Violations.

See
18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note: File three copies of this form, one of which must be manually signed. If space provided is insufficient,

See
Instruction 6 for procedure.



FORM 5 (continued) Explanation of Responses
Name:	Gannon, Robert P.	Statement for Month/Year:	12-31-2001
	40 E Broadway	Issuer Name: The Montana Power Company
	Butte MT 59701-9394

Note: 1	Includes 604.5991 shares acquired through the reinvestment of dividends since March 2001.
Note: 2	The option is first exercisable on 08/21/2008, except certain performance measures allow for "Early Vesting".
Note: 3	The option is first exercisable on 10/25/2007, except certain performance measures allow for "Early Vesting". On 3/10/2000, 50 % or 37,650 shares vested and are exercisable.

GANNON ROBERT P 5