NorthWestern seeks termination of two wind agreements

NorthWestern Corp. on July 23 filed with the Federal Energy Regulatory Commission notices of cancellation of two service agreements for a wind project.

These are transmission service agreements between NorthWestern and Gaelectric LLC that were filed in unexecuted form and accepted by the commission on May 30. “NorthWestern is cancelling these service agreements because Gaelectric rejected the Agreements and retracted its transmission service requests by stating that it does not agree to compensate NorthWestern at the rates, terms, and conditions determined by the Commission and demanding the immediate return of its security deposits,” said the filing.

This involves Gaelectric’s 460-MW Jawbone wind project near Judith Gap, Mont. NorthWestern and Gaelectric could not agree on terms and conditions for two transmission service agreements (TSAs) totaling 330 MW — a 197-MW TSA and a 133-MW TSA. As a result, Gaelectric asked NorthWestern to file those two TSAs in unexecuted form with the commission so that the commission could resolve the parties’ dispute.

Gaelectric n June 27 requested rehearing of the May 30 FERC order accepting those agreements. This request for rehearing remains pending with the commission.

In addition to the unexecuted 197-MW TSA and 133-MW TSA accepted by the commission, Gaelectric also executed a 130-MW TSA for transmission service from the Jawbone project. Gaelectric filed a complaint against NorthWestern seeking to delay the service commencement date for the 130-MW TSA. The executed 130-MW TSA at issue in that docket is not affected by this filing.

“[A]ccepting the Notices of Cancellation will promote the public interest because it will allow NorthWestern to remove these retracted transmission service requests from its transmission service queue and, as a result, eliminate uncertainty for transmission customers that are junior to Gaelectric in the NorthWestern transmission queue,” NorthWestern said.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.