Published:
NorthWestern Energy Submits Key Filings for Mill Creek Generating Station
BUTTE, Mont., Aug. 26 /PRNewswire-FirstCall/ -- NorthWestern Energy
(NYSE: NWE) today announced two significant filings regarding the proposed
Mill Creek Generating Station. On Friday, the company submitted its
application for an air quality permit with theState of Montana and late
Monday filed its request for advanced approval with the Montana Public Service
Commission.
"This is a great day for the people ofMontana. We are clearly on the
road to getting rid of electricity deregulation," said Rep. Henry Klock
(R-Harlowton), Chairman of the Energy and Telecommunications Interim
Committee.
The Mill Creek Generating Station would provide regulating resources to
balance the company's transmission system inMontana to maintain reliability
and enable additional wind power to be integrated onto the network to meet its
future renewable energy portfolio needs. The facility is designed to enable
increasing or decreasing energy production within seconds to follow load
fluctuations on the transmission system.
"This is the right project -- in the right place -- at the right time. It
is exactly what MEIC had hoped would happen when we supported the bill at the
2007 legislature to allow the utility to own and control power plants," said
Jim Jensen, executive director of the statewide environmental group.
"This application moves us another step toward the price stability and
operational benefits that utility-owned, rate based supply can provide over
the long-term," said Bob Rowe, President and CEO of NorthWestern Energy. "The
constructive work that has taken place between multiple branches ofMontana
government and NorthWestern leading up to the filing demonstrates that
Montanans can work together to get good things done."
Receipt of the air quality permit and PSC approval are necessary in order
for construction on the proposed $206 million plant to proceed. The total
capacity of the plant is expected to be approximately 200 megawatts
(MW) -- produced from four highly efficient "state-of-the-art" 50 MW
Pratt & Whitney Power Systems SWIFTPAC(R) units. The company proposes to
initially install three generators to meet current demand with the plant
design being scalable to permit the installation of a fourth generator as the
need develops to meet projected demand. The natural gas fired facility will
be able to operate on ultra low sulfur diesel and potentially biodiesel in the
event natural gas service is -- for any reason -- unavailable.
The Montana DEQ has 40 days from the receipt of a completed application to
make a preliminary determination whether the permit should be issued, issued
with conditions, or denied.
The Montana Public Service Commission has 270 days from the filing date to
issue a determination whether the plant will be allowed into rate base. As
part of the MPSC filing (D2008.8.95), the Company requested a capital
structure of 50% equity and 50% debt and an authorized return on equity of
10.75%. The entire filing can be found on the MPSC web site at
http://www.psc.mt.gov and at http://www.northwesternenergy.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 inMontana,South Dakota andNebraska. For more information about
NorthWestern Energy, visit our Web site at http://www.northwesternenergy.com.
SOURCE NorthWestern Energy
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