NorthWestern Energy has signed a stipulated agreement with the Montana Consumer Counsel (MCC) regarding the financial components of the proposed Spion Kop wind project in Central Montana, US.
NorthWestern announced its plans to purchase the 40MW project, valued at $86m, in April 2011.
If approved by the Montana Public Service Commission (MPSC), the proposed project is to be developed by Compass Wind and placed into utility rate-base for NorthWestern's Montana electric retail customers.
Upon the completion of the hearing, which is scheduled in mid-December, NorthWestern and the MCC recommend that the Commission issue a final order approving, adopting and implementing the terms of the stipulation and agreement.
If the MPSC fails to grant approval for the project on or before 1 April 2012 , then either party may terminate this agreement, NorthWestern said.
Construction is expected to commence upon a favorable ruling, with commercial operation projected to begin by the end of next year.