Montana’s largest utility says it needs to generate more electricity to meet customer demand, even after announcing plans to increase its stake in the Colstrip coal-fired power plant earlier this week.
NorthWestern Energy on Thursday announced it plans to issue a request for proposals (RFP) in January for 280 megawatts from on-demand sources like hydropower or natural gas to begin delivering electricity to customers in 2023.
A draft of the company’s 2019 Electricity Supply Resource Procurement Plan says NorthWestern will need an additional 725 megawatts by 2025 to meet times of peak customer demand. The plan models natural gas as the most efficient and cheapest option to meet that gap.
Bleau LaFave, director of long term resources at NorthWestern, says the plan serves as a guideline for the company and potential bidders.
“But it’s the RFP that determines what type of resource regardless of whether it’s fossil, renewable or some type of storage technology, it’s the RFP that will determine that least-cost path,” LeFave said.
The company may seek additional RFPs in the future to fulfill its system needs.
It says it currently only meets about 60 percent of its peak customer demand and often relies on purchasing electricity from the open market to meet the remaining need.
Its long-term supply plan is currently before the Public Service Commission for feedback and has received widespread backlash from environmental groups for its failure to push for a renewable energy future.
This week, NorthWestern announced it plans to buy an added 25 percent share of Colstrip power plant Unit 4, a sale that will require approval from state regulators.
While other owners of the Colstrip power plant have said they plan to pull out as early as 2025, NorthWestern has indicated it foresees maintaining stake in the plant into the 2040s.
