Matt Gouras, The Associated Press | Posted: Monday, June 4, 2007 11:00 pm
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HELENA, Mont. - NorthWestern announced plans Tuesday for a
transmission line running from Montana to Idaho which it said could
carry energy from developing wind power plants to power-hungry
markets.
The company, which has previously hinted at such a project,
said the power line would be operated outside of its regulated
utility business and would have no effect on consumer electric
rates.
A Montana Public Service Commission member, however, said the
project could have an indirect effect on prices.
NorthWestern said it spent several years evaluating the $800
million project, and believes more regional energy development will
follow. If siting and environmental permitting go as planned, the
project could be finished by 2013, the company said.
The 500 kilovolt transmission line, called the Mountain States
Transmission Intertie, will help pending power plants in Montana
reach customers, the company said.
"This is one of the first major transmission projects that
we've undertaken since the mid-1980s and underscores our commitment
to Montana and the region," NorthWestern President and CEO Mike
Hanson said.
The line would stretch about 400 miles, from either Townsend
or Garrison, to southern Idaho. Towers would be around 110 feet to
130 feet tall.
PSC Commissioner Ken Toole said the project could face stiff
resistance from people who don't want a power line running near
their homes in western Montana.
He said it's unclear whether it will impact ratepayers served
by the utility.
"My impression is that this is a power line that is
predominantly about export and making money on bulk transactions,"
Toole said.
Toole said ratepayers should be protected by "ring-fencing" if
the proposed transmission line proves to be a financial disaster
for NorthWestern.
Toole said it's possible the transmission line, along with a
separate line proposed between Great Falls and Alberta, could help
electricity customers by making the regional grid more
efficient.
A NorthWestern spokeswoman said the company has carefully
researched its customer base for the project, which includes new
and emerging power plants.
"They need additional paths to market, and this is one way to
get them to market," Claudia Rapkoch said.
NorthWestern is still seeking a sale to an Australian company,
a proposal that the PSC has said it will turn down. NorthWestern
has not said if it will appeal that decision.
Rapkoch said the proposed transmission line has no bearing on
the merger.
