BUTTE, Mont., Dec. 20, 2013 /PRNewswire/ -- NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) today submitted its formal request to the Montana Public Service Commission to approve the purchase of 11 hydroelectric generating facilities and related assets from PPL Montana, LLC, a wholly owned subsidiary of PPL Corporation (NYSE: PPL).
The filing initiates the formal regulatory process necessary to complete the previously announced $900 million agreement between the two companies. In addition, the company is asking permission to include the hydro assets into the company's rate base and to issue the securities necessary to complete the purchase.
"This proposed acquisition, if approved by the Montana Commission, will provide tremendous long-term benefits to our customers," said Bob Rowe, CEO. "Other utilities would love to have the chance to diversify their supply portfolios with hydro power. Opportunities like this come around rarely – if ever. We believe strongly that these are the best possible resources to serve our customers – that's what they were originally built to do. If approved by the Commission, they will be permanently dedicated to serve our Montana electric customers, with future prices based on the cost of production, not on prices in the western power market."
The filing outlines the various long-term customer benefits including greater resource adequacy and reliability; stable and reasonable costs/prices; and a more diversified portfolio featuring environmentally responsible, lower risk supply resources. It also confirms commitments to proceed with the transfer of Kerr Dam to the Confederated Salish and Kootenai Tribes, to maintain a strong presence in the river communities and to be a responsible steward of the facilities and river."We have received overwhelming support for this transaction from our customers and communities since announcing it earlier this fall," added Rowe. "This really is a significant opportunity for the PSC to approve the addition of utility-owned, regulated hydroelectric generation to NorthWestern's electricity supply resource portfolio."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV