BUTTE, Mont., Jan. 15 /PRNewswire-FirstCall/ -- NorthWestern Corporation
d/b/a NorthWestern Energy (NYSE: NWE) today announced that it notified the
Federal Energy Regulatory Commission (FERC) of its intent to conduct Open
Seasons for two electric transmission development projects.
The Open Seasons will allow potential customers to reserve capacity on
proposed transmission lines using a FERC approved methodology to ensure
fairness and non-discriminatory access. The results of an Open Season are
used to ensure that the transmission facility is built to meet the demand and
to ensure that the final project will have the revenues necessary to support
the investment.
"There are more than 5,000 megawatts of proposed new electric generation
-- much of it wind energy -- that has sought access to our transmission system
in Montana," said Dave Gates, vice president of wholesale operations.
"Montana currently has over 3,000 megawatts of generation of which about 1,800
megawatts is used under peak conditions by our native load customers. In
order for these wind and other potential projects to be built, we must expand
the transmission system to carry the power to population centers across the
West where it is in great demand."
NorthWestern has filed with the FERC to conduct an Open Season on a
proposed "collector system" of up to five new transmission lines in Montana
that would connect new generation, primarily wind farms, to the existing
NorthWestern Energy transmission system and potentially to the proposed
Mountain States Transmission Intertie (MSTI). Most of the new proposed wind
generation that would be served by the collector system would be located in
north central, central, south central and eastern Montana.
NorthWestern has also proposed to the FERC to conduct, in a separate
process, a second Open Season on the MSTI line to allow new participants the
opportunity to reserve capacity on the line and provide existing participants
an opportunity to reaffirm their existing reservations. The MSTI is a proposed
500kV transmission line that would run from near Townsend, Montana to near
Midpoint, Idaho.
The Montana Department of Environmental Quality recently completed its
review of the Montana Major Facility Siting Act Application for MSTI and found
the Application to be complete, therefore, satisfying the requirements of the
State's administrative rules. The project is currently undergoing
environmental review with a draft Environmental Impact Statement due in
mid-2009.
"While the regional economy has slowed, utilities across the West are
still focused on meeting state Renewable Portfolio Standards (RPS) for their
customers over the next several years. Montana has very good wind power
potential compared to many other Western states, which is why renewable energy
developers and other western utilities are very interested in importing power
from Montana," said Bob Rowe, CEO of NorthWestern Energy. "Responsible
renewable energy development has the potential to enhance our regional and
local rural economies over the next few years. Our transmission work,
therefore, is highly complementary to our focus on providing stable and
reliable distribution and supply service to our own customers."
"I'm committed to helping create good paying jobs and boost Montana's
economy, and this open season aims to do just that," said Montana's senior
U.S. Senator Max Baucus, chairman of the powerful Senate Finance Committee.
"Montana is playing a big part in America's energy solutions. These new
transmission lines will help boost production here at home, improve our energy
independence and protect our outdoor heritage. This is good news."
"With renewable energy projects moving full steam ahead, Montana is going
to be a leader in America's energy future," said U.S. Senator Jon Tester.
"This announcement is a big step forward because we need strong infrastructure
in order to sell our home-grown energy-creating jobs and opportunity in
Montana for generations to come."
"Nationally, as we look for ways to decrease our dependence on foreign oil
and keep energy costs affordable, Montana can play a major role in the
development of energy production nationwide. I have supported an all-of-the-
above energy solution that includes responsible development of traditional
fossil fuels, increased energy conservation, development of alternatives and
investment in energy technology," said U.S. Representative Dennis Rehberg, a
member of the Energy and Water Appropriations Subcommittee. "One of the
fundamental challenges we face with all of these options is the need for
additional infrastructure to get the energy from the production point to the
end-user. This announcement is a big step toward accomplishing that goal."
Governor Brian Schweitzer, who is also the vice-chairman of the Western
Governor's Association, applauded the Northwestern "open season" request for
continuing to reinforce that "energy development will be the strongest
economic driver for the state of Montana in the coming years. Developing
Montana's alternative and renewable energy resources will result in the
creation of high quality jobs in construction and operations of both
transmission lines and the attendant wind farms and other energy facilities,"
said Governor Schweitzer. "It will also create a strong industrial property
tax base that Montana needs, especially in the prairies of north-central and
eastern Montana".
Construction on the MSTI line will begin after all necessary environmental
approvals and permits are obtained; it is expected to be placed into service
in 2013. For more information about the MSTI project please visit
http://www.msti500kv.com.
About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity and
natural gas in the Upper Midwest and Northwest, serving approximately 650,000
customers in Montana, South Dakota and Nebraska. For more information about
NorthWestern Energy, visit our Web site at http://www.northwesternenergy.com.
SOURCE NorthWestern Corporation