NorthWestern Energy Signs Asset Purchase Agreement With Compass Wind

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NorthWestern Energy has signed an asset purchase agreement to purchase a projected aggregate nameplate capacity of 40 MW from a wind project in Judith Basin County, Mont.

The Spion Kop wind project, which will be developed and constructed by Spion Kop Wind LLC, a wholly owned subsidiary of Compass Wind LLC, is intended to be placed into NorthWestern's Montana rate base for the company's electric retail customers. Both the energy and associated renewable energy credits will be placed into the electric supply portfolio and used to meet future renewable portfolio standard obligations.

The purchase price is $1,947/kW for the project's total nameplate capacity, which is equal to approximately $77.8 million.

The purchase is conditioned on pre-approval of the project by the Montana Public Service Commission (MPSC) to include the project in NorthWestern's rate base. As part of this condition, NorthWestern is to submit its application to the MPSC for pre-approval as an electricity supply resource.

If the MPSC fails to grant approval for the project on or before April 1, 2012, then either party may terminate this agreement. Construction would commence upon a favorable ruling, with commercial operation projected expected to begin by the end of 2012.

SOURCE: NorthWestern Energy

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