Montana-Dakota Utilities files to build gas-fired electric generation facility in North Dakota

A new application with the North Dakota Public Service Commission would, if approved, give Montana-Dakota Utilities the ability to construct, own and operate an 88-megawatt, natural gas-fired generation facility near Mandan, North Dakota.

The structure is a simple cycle combustion turbine and it would be established next to an existing company-owned combustion turbine. Montana-Dakota says it is necessary for the capacity requirements of its customers and would enable service for around 86,000 of their residential customers. Work toward this construction has been ongoing since July 1, however, as part of the company’s integrated resource plan, which noted that the selected site meets all their needs: a natural gas supply, along with land and transmission interconnection facilities.

“This new facility will add to our generation portfolio and provide our customers with a cost-effective capacity resource for many years into the future,” Nicole Kivisto, president and CEO of Montana-Dakota Utilities, said. “We think this a great opportunity to construct on land we already own, next to company-owned generation, which translates into the best-cost option for our customers.”

The addition fits into plans Montana-Dakota has already announced to retire the Lewis & Clark Station in Montana, as well as the Heskett Station in North Dakota — both coal-fired facilities. Respectively, they aim for closures of March 2021 and March 2022, but they say the new natural gas-fired facility would have the potential to cut operating costs in half from what they are now.

If approved, the utility expects the new facility to be up and running by the first quarter of 2023 and cost Montana-Dakota around $73 million to build.