NW Energy requests approval of hydropower dams

NorthWestern Energy (Sioux Falls, SD) has submitted a formal request to the Montana Public Service Commission (MPSC)  for approval of NW Energy’s acquisition of 11 hydroelectric power dams and related assets from PPL Montana, LLC, a subsidiary of PPL Corp. (Allentown, PA). MPSC’s approval is required to complete the $900 million deal, which was struck by NW Energy and PPL Montana in September 2013, following several months of negotiations. Those negotiations had broken down early in 2013 when NW Energy refused to purchase PPL Montana’s coal-fired power plants in Colstrip as part of the deal, but talks resumed in the spring. As part of its application to MPSC, NW Energy is seeking recovery of the full cost of the purchase, which would mean an estimated 4.22% increase in electricity rates for the utility’s Montana customers. MPSC has nine months to review the application.