Montana’s largest utility this week filed its intention to buy into a smaller share in a unit of the Colstrip coal fired power plant than it originally planned.
NorthWestern Energy on Aug. 19 changed its purchase request from 185 megawatts to roughly 92 megawatts after power plant operator Talen Energy exercised its right to participate in the sale earlier this year.
NorthWestern previously intended to buy Puget Sound’s entire 25 percent share in Unit 4, one of the power plant’s two remaining units.
Jim Atchison, executive director of the regional economic group Southeastern Montana Development Corporation, says the smaller purchase is still good news.
“I think it creates stability in the community especially. Units 3 and 4 will provide for many years that affordable and reliable power that everybody wants," Atchinson said.
Puget Sound Energy of Washington State announced it would sell its share in Colstrip Unit 4 last year. Washington State legislation requires electric utilities to go 100 percent coal free by 2025.
If regulators approve NorthWestern’s purchase proposal, the utility says it would sell up to 45 megawatts hourly back to Puget over five years.
Editor’s note Aug. 21: An estimate for NWE’s projected fixed operations and maintenance and property taxes for Unit 4 has been removed from this story after a spokesperson for the utility alerted YPR News the estimate she shared was incorrect. NWE says the correct cost of annual operations and maintenance and property taxes for a roughly-92 megawatt share would be about $8 million.
