Montana Ambassadors Helena, Montana February 25, 2011 Our Operations Service territory includes Montana, South Dakota, Nebraska, and Wyoming 661,000 customers Electric » 31,700 miles of transmission & distribution » 297 communities Natural Gas » 8,400 miles of transmission and distribution » 168 communities Employees – 1,354 2 Montana Operations Service territory includes western 2/3 of Montana (107,600 square miles) Electric » 21,400 miles of distribution » 7,000 miles of transmission » Peak load -1,766 MW Average load – 1,216 MW Natural Gas » 4,100 miles of distribution » 2,000 miles of transmission » Total delivered – 40 BCF Peak Daily – 335,000 dkt Employees – 1,037 3 Our transmission developments… Why Transmission Growth? 4 Western States RPS Requirements 5 5 Opportunities - Potential Wind Distribution 6 6 Montana is between resources & loads 7 Our transmission developments… Purpose, Benefit, and Need Meets NWE’s Federal Energy Regulatory Commission (FERC) requirement to respond to new transmission service requests Provides transmission for new generation development Enables the development of high quality MT wind power to reach market Provides and enables positive economic impact to Montana, Idaho and the region Improves electric system performance and flexibility Meets the needs of regional electrical demand 8 NWE proposed transmission projects Collector System Colstrip Upgrade MSTI 9 Mountain States Transmission Intertie (MSTI) Project 500 kV AC line from Townsend MT to Midpoint Substation near Twin Falls ID Approximately 430 miles depending on final route 1130 miles of alternatives » 80+% on State and Federal Public Lands Advanced Stages of Public Siting and Review – began in 2007 1500 MW Path Rating Capacity Expected Current Project cost is $1 billion 10 10 Montana Renewable Collector System Currently 4,000 MW in generation interconnectio n queue Radial lines to Townsend Access to MSTI, 500 kV and NWE network MT-RCS defined by this Open Season Potential Collector Lines New Townsend Substation High Wind Area Target in service date is 2016 Confidential 11 Colstrip Upgrade The project is currently being developed primarily by BPA and NWE with the other owners having various levels of interest. Initially identified in transmission study as being a piece of “low hanging fruit” No new linear facilities required 12 Gas Operations 13 Gas Facts Four major pipelines cross from Canada into Montana Carway, Aden, Canadian Montana Pipeline and TransCanada (CMPL is owned by NWE) Havre – Havre Pipeline and Chinook pipelines tie to Many Islands Pipeline Morgan/Monchy – Northern Border cross Montana heading to the Mid-West » 485 BCF per year of imports 14 Gas Facts Carway and Aden come into NorthWestern’s transmission line, and the 15 BCF of imports equals about 38% of our 40 BCF annual market. 15 BCF at the average price of $3.90/mcf in 2010 would be $58.5 million Montana produces about 95 BCF and consumes 76 BCF with most of the difference going into Canada or Northern Border. 15 Questions ???? 16