Northwestern Energy closes buy of 40-MW Montana wind project

Nov 16, 2012 - US utility Northwestern Energy (NYSE:NWE) on Thursday said it had closed the acquisition of the 40-MW Spion Kop wind farm in Montana from wind project developer Compass Wind LLC.

Northwestern Energy agreed to acquire the project in April last year in a deal that called for the facility to be developed and built by Spion Kop Wind LLC, a wholly-owned unit of Compass Wind. The Montana Public Service Commission (MPSC) gave approval for the USD-86.1-million (EUR 67.4m) project to be included in the utility's regulated rate base in February.

The wind farm, consisting of 25 General Electric Co (NYSE:GE) turbines of 1.6 MW, according to earlier announcements, started commercial operations earlier in November, Northwestern Energy said.

Northwestern Energy will use the electricity generated and the associated renewable energy credits to meet its renewable portfolio standards obligations for sourcing 15% of its energy from renewables by 2015 under Montana law.

MPSC will carry out a prudency review of Spion Kop's construction costs, which is anticipated to be completed during 2013. Northwestern Energy said it expected to recover the project in client rates starting next month.

(USD 1.0 = EUR 0.783)

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