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