NorthWestern Energy to purchase 80 megawatts of wind power in Montana from Allete

NorthWestern Energy added more wind power to its future Montana portfolio this week through a purchase agreement with a subsidiary of Allete Clean Energy.

The agreement calls for development of a wind farm in south-central Montana that will yield 80 megawatts. NorthWestern will, in turn, purchase those megawatts for $21.03 per megawatt hour, along with an annual $1.58 per megawatt hour for capacity over the next 15 years.

“We negotiated an agreement that will result in a very low-cost qualifying facility wind project for our portfolio to help protect customers’ bills,” John Hines, NorthWestern’s vice president of energy supply, said. “Qualifying facilities are problematic since we’re mandated by federal law to purchase the power regardless of the needs of NorthWestern’s customers. However, rates paid to qualifying facilities continue to decline as the generation portfolio fills, and we’re pleased to work with a developer that takes into consideration the best interests of our customers.”

The South Peak Wind project will begin construction this year and should be completed by the end of 2019. It will be located near Geyser, Montana.