Utility contracts for energy from Kalispell mill

NorthWestern Energy has agreed to buy power from a Kalispell mill that generates electricity from burning scrap wood, the company announced Friday.

By the Associated Press Missoulian

The contract with Thompson River Co-Gen calls for NorthWestern Energy to purchase approximately 10 megawatts of electricity from Thompson River Lumber mill’s "biomass cogeneration" plant for 10 years, beginning in late 2003.

The plant generates electricity and steam from burning scrap wood.

"They’re keeping enough electricity to run the facility; we purchase the rest," Claudia Rapkoch, a spokeswoman for NorthWestern Energy, said Friday.

The electricity will be part of NorthWestern’s energy supply portfolio for its 295,000 customers.

NorthWestern energy will pay $40 per megawatt hour for the power for five years and has the option to renew the contract at a rate of about $34 per megawatt hour for another five years.

NorthWestern Energy also announced it entered into a memorandum of understanding to purchase power from Tiber-Montana, LLC of Idaho Falls, Idaho. Tiber-Montana was formed to install a hydroelectric generator at Tiber Dam near Chester.

"I believe they’re scheduled to come online in early 2004," Rapkoch said.

She said the memo of understanding is an agreement to work toward a contract if the project is completed.

Under deregulation, NorthWestern Energy provides electricity supply and transmission services to Montana customers who have not yet chosen a competitive supplier, or for whom competitive options do not exist.