NorthWestern Energy decides contracts for wind power with Navitas Energy of Minneapolis and Wind Park Solutions America of Big Sandy

NorthWestern Energy has selected two wind-power projects, including one near Whitehall, to help supply 75 to 100 megawatts of electricity to its Montana customers, the Tribune learned Friday.

By MIKE DENNISON
Tribune Capitol Bureau

If NorthWestern decides to sign final contracts with the two proposals, they would be the first major wind-power projects in Montana.

Mark Thompson, executive director of energy supply for NorthWestern, confirmed Friday that his company has issued letters to two wind-power firms, informing them NorthWestern wants to accept their bids.

One has accepted the initial terms and the second firm is expected to accept next week, he said.

Thompson declined to identify the firms, saying the parties agreed not to make a public announcement until they’d signed off on the deal.

But industry sources confirmed Friday that Navitas Energy of Minneapolis is one of the two companies chosen to supply power starting in late 2004. Navitas’ project would be near the Golden Sunlight gold mine, east of Whitehall.

Sources also said the other winning bidder is probably Wind Park Solutions America of Big Sandy, but that could not be confirmed.

Wind Park Solutions is proposing a wind farm near Judith Gap.

Bob Quinn, a Big Sandy farmer and partner in Wind Park Solutions, could not be reached for comment.

Greg Jaunich, president of Navitas Energy, declined to comment Friday, citing a confidentiality agreement signed by all bidders. Neither NorthWestern nor any bidders are supposed to publicly discuss the bids until an agreement is reached, he said.

NorthWestern Energy serves nearly 300,000 Montana electricity customers. Power from the wind projects would be one of several electricity-supply sources for these customers.

NorthWestern asked for wind-power bids late last year and recently narrowed the list of bidders to four finalists, Thompson said.

Once the second winning bidder agrees to a "term sheet" offered by NorthWestern, the two projects will undergo further review, Thompson said.

The company must examine wind data, permitting rights, environmental issues, transmission hook-ups and other items, he said.

If those things pan out, NorthWestern would arrange power-purchase agreements with the winning bidders, he said.

"Even though we’ve selected the (winners), it does not mean that a power-purchase agreement is imminent," Thompson said. "We could get down the road three weeks and come to an impasse with either one of the parties."

The power-purchase agreements could be completed by this summer, he added.

Navitas is the same firm that lost out two years ago on a wind-power bid with NorthWestern’s predecessor, Montana Power Co., and then protested the selection process.

Objections by Navitas and others led the Public Service Commission to reject the winning bid, which had been awarded to Montana Wind Harness.

The PSC suggested last year that NorthWestern Energy rebid the wind contract.

Wind Park Solutions America is a partnership formed by Quinn and two Germans with a background in wind power.

Wind Park has proposed a wind farm between Judith Gap and Harlowton with turbines to generate up to 180 megawatts of power, which would supply 50,000 households.

Both project developers have said the projects would mean millions of dollars of investment in the local economies.

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