NorthWestern Energy to buy wind farm for USD 143m

Utility NorthWestern Corp (NYSE:NWE), which does business as NorthWestern Energy, today said it agreed to pay USD 143 million (EUR 130m) to acquire a wind farm in South Dakota.

To finance the deal the utility will issue up to USD 70 million in long-term debt and USD 60 million in common stock and pay for the remainder with available cash. Closing of the deal is expected by end of the year.

The recently constructed 80-megawatt Beethoven wind farm is located near Tripp, South Dakota. It currently comprises 43 turbines and the rights to a 50MW expansion site adjacent to the existing facility.

The energy and renewable energy credits associated with this project are currently included in NorthWestern's electricity supply portfolio under two wind qualifying facility (QF) power purchase agreements (PPA). Upon closing the deal NorthWestern will terminate the PPAs and request the wind project to be placed into rate base as part of its pending electric general rate filing as a known and measurable adjustment. The rate-based cost is expected to be significantly lower than the existing PPAs benefiting NorthWestern's customers' bills over the long-term, the company said in a press release..

NorthWestern Energy provides electricity and natural gas in the Upper Midwest and Northwest, serving approximately 692,600 customers in Montana, South Dakota and Nebraska.

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