NorthWestern Energy Submits Request to Purchase Hydroelectric Facilities
BUTTE, Mont., Dec. 20, 2013
BUTTE, Mont., Dec. 20, 2013 /PRNewswire/ --NorthWestern Corporation d/b/a
NorthWestern Energy (NYSE: NWE) today submitted its formal request to the
Montana Public Service Commission to approve the purchase of 11 hydroelectric
generating facilities and related assets from PPL Montana, LLC, a wholly owned
subsidiary of PPL Corporation (NYSE: PPL).
The filing initiates the formal regulatory process necessary to complete the
previously announced $900 million agreement between the two companies. In
addition, the company is asking permission to include the hydro assets into
the company's rate base and to issue the securities necessary to complete the
"This proposed acquisition, if approved by the Montana Commission, will
provide tremendous long-term benefits to our customers," said Bob Rowe, CEO.
"Other utilities would love to have the chance to diversify their supply
portfolios with hydro power. Opportunities like this come around rarely – if
ever. We believe strongly that these are the best possible resources to serve
our customers – that's what they were originally built to do. If approved by
the Commission, they will be permanently dedicated to serve our Montana
electric customers, with future prices based on the cost of production, not on
prices in the western power market."
The filing outlines the various long-term customer benefits including greater
resource adequacy and reliability; stable and reasonable costs/prices; and a
more diversified portfolio featuring environmentally responsible, lower risk
supply resources. It also confirms commitments to proceed with the transfer
of Kerr Dam to the Confederated Salish and Kootenai Tribes, to maintain a
strong presence in the river communities and to be a responsible steward of
the facilities and river.
"We have received overwhelming support for this transaction from our customers
and communities since announcing it earlier this fall," added Rowe. "This
really is a significant opportunity for the PSC to approve the addition of
utility-owned, regulated hydroelectric generation to NorthWestern's
electricity supply resource portfolio."
If approved, the addition of the assets into the electric supply portfolio
would cause total residential electric bills to be 4.22% higher than what they
are today, but then they will help tomaintain relatively stable electric
supply costs for the foreseeable future. The natural gas portion of a
combined customer (natural gas and electric) bill is not affected by this
Subject to necessary regulatory approvals and customary closing adjustments,
the company and PPL intend to complete the transaction in the third quarter of
2014. For more information about this acquisition or to view the filings made
today, please visit www.northwesternenergy.com
About NorthWestern Energy (NYSE: NWE)
NorthWestern Energy provides electricity and natural gas in the Upper Midwest
and Northwest, serving approximately 673,200 customers in Montana, South
Dakota and Nebraska. More information on NorthWestern Energy is available on
the company's website at www.northwesternenergy.com.
SOURCE NorthWestern Corporation
Contact: Media Contact: Claudia Rapkoch, (866) 622-8081,
Claudia.firstname.lastname@example.org, Investor Contact: Travis Meyer, (605)
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