The Montana Public Service Commission (PSC) has approved NorthWestern Energy's application for 'pre-approval' to build and operate a 40MW wind energy project in central Montana, US.
The Spion Kop wind farm will be constructed near Geyser in Judith Basin County and is expected to commence commercial operation by the end of this year.
According to the PSC, the expected cost of electricity generated from the wind farm is $55.42 per MWh, compared to an average cost of the current portfolio of $60.87 per MWh and a market price since 2000 of $64.37 per MWh.
The wind energy project qualifies for a $22 per MWh production tax credit in its first ten years of commercial operation.
Montana law allows companies to get pre-approval for significant power generating projects they plan to build or acquire.