NorthWestern Energy Submits Key Filings for Mill Creek Generating Station

"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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