Two power projects still a go, despite cancellation of contracts

Developers of two proposed power projects in Montana said Monday that they’re going forward with their plans – despite
Friday’s announcement that NorthWestern Energy had canceled contracts with the projects.

By MIKE DENNISON
Tribune Capitol Bureau

"It’s just a matter of understanding what NorthWestern is going to do," said Doug Barba of Ameresco Inc., the managing partner of
Montana Wind Harness, a wind-power project. "We’re just kind of in a wait-and-see mode."

The owner of a proposed coal-fired plant at Hardin said it’s going ahead, too, but is looking for other customers to buy electricity from the
plant.

Dan Sharp, a spokesman for MDU Resources in Bismarck, N.D., said it may still deal with NorthWestern Energy, but is looking
elsewhere.

"We’re pretty confident we can sell that energy," he said. "As far as we’re concerned, our plans to build the plant haven’t changed."

MDU Resources owns Centennial Power, a subsidiary that bought the project late last year.

NorthWestern Energy — formerly Montana Power Co. — arranged last year to buy power from Wind Harness and the Hardin plant.

The electricity was part of a five-year, $1 billion deal the company had arranged to serve its 290,000 electric customers in Montana
starting this July.

The deal also included contracts with existing Montana power plants and three other new proposed power projects, such as NorthWestern
Corp.’s gas-fired plant in Great Falls.

The commission in June approved the contracts with the existing power plants, leading to a 10 percent rate increase July 1.

But the PSC rejected the contracts with the new power projects. It said NorthWestern hadn’t justified them as a prudent choice or good
deals for the consumer.

Friday, NorthWestern Energy announced it was canceling contracts with the five new power projects. The company said it plans to work
on a new process for procuring electricity contracts to fully supply its customers.

The cancellation affected the following projects:

The 240-megawatt gas-fired plant planned for Great Falls, developed by NorthWestern Corp., which owns NorthWestern Energy.

The 150-megawatt wind-power project proposed by Montana Wind Harness.

The 113-megawatt coal-fired plant at Hardin.

A five-megawatt hydroelectric project at Tiber Dam, south of Chester.

A 10-megawatt coal and wastewood project at Thompson Falls.

Barba said Wind Harness still has "a really sound project," and hopes it eventually can be accepted by NorthWestern and the PSC.

"We’re just being patient," he said Monday. "We’re keeping our whole transaction together."

Barba has been attending meetings this month organized by the PSC, which wants to help advise NorthWestern Energy on developing a
new contractual process that will meet PSC approval.

Sharp said that Centennial Power will be looking for a long-term contract to sell power from the Hardin plant, and that it’s not pinning its
hopes on selling to NorthWestern Energy.

A spokesman for NorthWestern Corp. said last week that it still hopes to arrange a contract to sell power from the Great Falls plant to
Montana customers served by its subsidiary, NorthWestern Energy.

Construction on the plant has been suspended since May.

Developers of the Thompson River and Tiber Dam projects could not be reached for comment Monday.

http://www.greatfallstribune.com/news/stories/20020723/localnews/281746.html