NorthWestern highlights benefits of dam purchase

THOMPSON FALLS – The Thompson Falls Dam is one of eleven hydroelectric facilities in Montana that may be transferred from their current owners, PPL Corporation of Montana, to NorthWestern Energy if the proposed $900 million deal is approved.

The Montana Public Service Commission, who must approve the deal before it is finalized, is currently holding listening sessions in areas across the state.

The Thompson Falls dam session was held in Superior on Wednesday, May 7 at the Mineral County Courthouse.

Throughout these meetings, NorthWestern Energy has been adamant about the potential benefits this deal could bring to citizens and businesses throughout Montana if the deal goes through. 

According to the company, the dams, including the Thompson Falls facility, will allow NorthWestern to provide its customers with clean, renewable electricity for years to come.

 “If we buy the dams we can have much more control over price in the future, market prices can be very volatile.” Butch Larcombe, from Corporate Communications at NorthWestern Energy said. 

Larcombe noted utilities would increase initially, an estimated increase of 4.8 percent, but future savings will offset the increase, in addition to shielding utility rates from unforeseen price increases. 

Larcombe emphasized, a major goal from the purchase of the facilities is to keep the electricity produced at these dams in Montana, where it will be regulated by the PSC and made available to consumers within the state. 

“We are a Montana focused company,” Larcombe said. 

NorthWestern is the largest energy producer in Montana, employing around 1,200 employees throughout the state. 

As the deal stands right now, NorthWestern Energy will pay PPL $900 million to buy the 11 hydroelectric facilities, which combined have 633 megawatts of generation capacity.

Larcombe noted the price of the deal has raised eyebrows, but explained the dams are sought after assets in great condition, warranting the price of their acquisition. 

The company cannot renegotiate the purchase price with PPL Montana; there are other entities interested in some of the dams, contributing to the price agreed upon by the two parties, added Larcombe. 

Some of these entities could include out-of-state utilities and hedge funds; raising the possibility the energy produced at the hydroelectric facilities would be shipped out of state, forcing Montanans to look elsewhere for their own energy needs. 

NorthWestern’s belief in clean energy seems to be supported by a Supreme Court ruling at the end of April. On Tuesday, April 29, The Supreme Court upheld a federal regulation limiting the amount of air pollution allowed to cross state lines. 

Many coal facilities located on the edge of states will be privy to this ruling, creating more interest in cleaner ways to produce electricity. 

“Given the future potential of regulation, it is worth it,” Larcombe said, referring to the cost of the proposed deal and its benefits.  

NorthWestern has noted they have thoroughly investigated the cost of maintaining the dams and reservoirs, and have confidence in their structural integrity and long-term generation potential. 

The company has also noted no local jobs related to the dams will be lost because of the potential purchase.