PPL Montana divests hydroelectric plants to NorthWestern Energy

Electricity firm PPL Montana has divested 11 hydroelectric facilities and Hebgen Lake reservoir to NorthWestern Energy, in a deal worth $900m.

The hydroelectric power plants, which have a combined capacity of over 630MW, include Thompson Falls Dam on the Clark Fork River; Kerr Dam on the Flathead River; Madison Dam on the Madison River; Mystic Lake Dam on West Rosebud Creek.

The transaction also includes Hauser, Holter, Black Eagle, Rainbow, Cochrane, Ryan and Morony dams along the Missouri River.

The 194MW Kerr project will be transferred to the Confederated Salish and Kootenai Tribes of the Flathead Reservation in September 2015.

NorthWestern Energy CEO Bob Rowe said: “The dams that are so much a part of Montana’s environment and heritage are now dedicated to serve our Montana customers, at prices based on the cost of providing service, not on the western power market.”

The deal will require PPL Montana’s 81 employees to be transferred to NorthWestern Energy.

NorthWestern had earlier issued equity and debt securities to finance the transaction.

It offers electricity and natural gas in the Upper Midwest and Northwest, serving about 678,200 customers in Montana, South Dakota and Nebraska.