Additional Colstrip Supply at “No Price”
by Evelyn Pyburn
NorthWestern Energy has acquired Avista’s share of Colstrip Units 3 & 4, with no purchase price.
NorthWestern Energy and Avista announced the agreement, which NorthWestern Energy proclaimed will enable it to provide it’s Montana customers with needed on-demand power generation capacity and allow Avista to exit ownership of the Colstrip plant in accordance with the state of Washington laws.
“More resources that can generate power on-demand, 24/7, located in Montana and dedicated to serve Montanans, are needed to meet our responsibility to provide our customers with reliable energy service, keep them safe in all weather conditions and avoid an energy crisis,” said NorthWestern Energy President and CEO Brian Bird. “This agreement addresses that risk and saves our Montana customers the significant cost of acquiring new generation. It solidifies NorthWestern Energy’s path to achieve our Net Zero Emissions by 2050 commitment, ensuring we can continue to provide reliable energy service at the most affordable rates until other technology for on-demand, clean generation is cost effective.”
Today high demand for energy that stresses large portions of the West’s grid reduces both the quantity of power available from the market and transmission to import out-of-state energy for our Montana customers, he said.
· NorthWestern Energy will acquire Avista’s ownership of Colstrip Units 3 & 4, 222 megawatts, with no purchase price, effective on Jan. 1, 2026.
· Avista will retain its obligation for its portion of environmental and decommissioning costs associated with the future closure of the plant.
· NorthWestern Energy will be responsible for operational costs for the 15% shares of Colstrip Units 3 & 4 when ownership is transferred.
· Avista and NorthWestern Energy will prorate Avista’s share of the cost of certain capital expenses for the Colstrip plant from now through Jan. 1, 2026.
The transaction was applauded by Governor Greg Gianforte, saying, “We want people to invest in Montana who want to be in Montana, and that happened here with NorthWestern Energy. This development will better ensure Colstrip remains in service throughout its full, useful life, and it’s encouraging for Montanans who rely on the reliable, affordable electricity Colstrip generates.” He further stated, “Montana needs Colstrip. We saw that firsthand in December when we had record and near-record lows throughout the state, and we needed Colstrip to keep our lights and our heat on. I’m very encouraged about this announcement. It’s a promising step for the State of Montana and the people of Colstrip.”
Click HERE to Read Entire Story
