NorthWestern Energy to request proposals for flexible capacity

(Feb. 12, 2019) NorthWestern plans to begin modernizing the grid and improving reliability for South Dakota electric customers

NorthWestern Corporation d/b/a NorthWestern Energy (“NorthWestern”) plans to issue a request for proposals in April for 60 MW of flexible capacity resources (the “Capacity RFP”) to begin delivering power to South Dakota customers by the end of 2021.  NorthWestern is seeking flexible capacity in order to modernize its portfolio of resources and improve reliability for its electric customers.

NorthWestern completed a comprehensive assessment of its fleet of generating resources and submitted an updated Electricity Supply Resource Procurement Plan to the South Dakota Public Utilities Commission in 2018. NorthWestern’s 2018 procurement plan focuses on adding customer value by improving system reliability, flexibility and operating efficiency in local communities and across NorthWestern’s South Dakota service territory.

As a first phase of system modernization, NorthWestern plans to retire the two existing units at its Huron Generating Station totaling approximately 60 MW. NorthWestern will consider proposals in this Capacity RFP for a variety of generation technologies under a variety of procurement structures.  The Capacity RFP will incorporate two parallel paths. NorthWestern will consider proposals for power purchase agreements, build-transfer arrangements and other alternative structures satisfying the company’s generation requirements. NorthWestern will separately evaluate engineer, procure and construct (“EPC”) proposals for new generation at the Huron site.   NorthWestern will be soliciting proposals from reciprocating engine manufacturers in late February to be used in the evaluation of the EPC proposals.

The Capacity RFP will be administered by HDR Engineering, Inc. (“HDR”). All correspondence related to this RFP should be via e-mail and directed to NWESD_2019RFP@hdrinc.com. Please do not contact NorthWestern personnel to discuss the Capacity RFP. Parties interested in participating in the Capacity RFP must complete a safety and experience qualification questionnaire and execute a mutual non-disclosure agreement (“NDA”) with NorthWestern. Interested parties can receive the qualification questionnaire and the NDA form by sending an e-mail expressing interest to NWESD_2019RFP@hdrinc.com.  The questionnaire must be completed and the NDA executed by 5:00 p.m. CST March 29, 2019 in order to participate in the Capacity RFP.  

Source: NorthWestern Energy