In October 2008, NorthWestern Energy issued a Request for Proposal (RFP) seeking offers for up to 100 MW of firm electricity supply to serve its Montana customers. As a result of this competitive RFP effort, we have entered into an agreement with Turnbull Hydro, LLC to purchase 13 megawatts of clean, renewable energy from a new generating facility located on an existing irrigation canal near Fairfield, Montana.
The generating facility will help the company meet its Renewable Portfolio Standard obligation in 2012. In addition to a competitive price, under the 20-year power purchase agreement, the company will receive all of the renewable energy credits associated with this generation project.
This hydro project will start generating electricity in 2011 when the irrigation canal begins receiving water and will operate throughout the irrigation season.