Montana AmbassadorsMontana AmbassadorsHelena, MontanaHelena, MontanaFebruary 25, 2011February 25, 2011

Our OperationsOur Operations

Service territory includes Montana, South Service territory includes Montana, South Dakota, Nebraska, and WyomingDakota, Nebraska, and Wyoming

661,000 customers661,000 customers

ElectricElectric» 31,700 miles of transmission & distribution31,700 miles of transmission & distribution» 297 communities297 communities

Natural GasNatural Gas» 8,400 miles of transmission and distribution8,400 miles of transmission and distribution» 168 communities168 communities

Employees – 1,354Employees – 1,354

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Montana OperationsMontana Operations

Service territory includes western 2/3 of Service territory includes western 2/3 of Montana (107,600 square miles)Montana (107,600 square miles)

ElectricElectric» 21,400 miles of distribution21,400 miles of distribution» 7,000 miles of transmission7,000 miles of transmission» Peak load -1,766 MW Average load – 1,216 MWPeak load -1,766 MW Average load – 1,216 MW

Natural GasNatural Gas» 4,100 miles of distribution4,100 miles of distribution» 2,000 miles of transmission2,000 miles of transmission» Total delivered – 40 BCF Peak Daily – 335,000 dktTotal delivered – 40 BCF Peak Daily – 335,000 dkt

Employees – 1,037Employees – 1,037

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WhyWhy

Transmission Growth?Transmission Growth?

Our transmission developments…Our transmission developments…

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Western States RPS Requirements

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Opportunities - Potential Wind Distribution

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Montana is between resources & loadsMontana is between resources & loads

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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

Our transmission developments…Our transmission developments…

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NWE proposed transmission projectsNWE proposed transmission projects

Collector System

Colstrip Upgrade

MSTI

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Mountain States Transmission Intertie (MSTI) ProjectMountain States Transmission Intertie (MSTI) Project

500 kV AC line from Townsend 500 kV AC line from Townsend MT to Midpoint Substation MT to Midpoint Substation near Twin Falls IDnear Twin Falls ID

Approximately 430 miles Approximately 430 miles depending on final routedepending on final route

1130 miles of alternatives1130 miles of alternatives» 80+% on State and Federal 80+% on State and Federal

Public LandsPublic Lands

Advanced Stages of Public Advanced Stages of Public Siting and Review – began in Siting and Review – began in 20072007

1500 MW Path Rating Capacity 1500 MW Path Rating Capacity ExpectedExpected

Current Project cost is $1 Current Project cost is $1 billionbillion

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Montana Renewable Collector System

Currently 4,000 MW in generation interconnection queue

Radial lines to Townsend

Access to MSTI, 500 kV and NWE network

MT-RCS defined by this Open Season

Target in service date is 2016

New Townsend SubstationHigh Wind

Area

Potential Collector Lines

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Colstrip Upgrade Colstrip Upgrade

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The project is currently being developed The project is currently being developed primarily by BPA and NWE with the other primarily by BPA and NWE with the other owners having various levels of interest.owners having various levels of interest.

Initially identified in transmission study as being Initially identified in transmission study as being a piece of “low hanging fruit”a piece of “low hanging fruit”

No new linear facilities requiredNo new linear facilities required

Gas OperationsGas Operations

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Gas FactsGas Facts

Four major pipelines cross from Canada into Four major pipelines cross from Canada into MontanaMontana

Carway, Aden, Canadian Montana Pipeline and Carway, Aden, Canadian Montana Pipeline and TransCanada (CMPL is owned by NWE)TransCanada (CMPL is owned by NWE)

Havre – Havre Pipeline and Chinook pipelines Havre – Havre Pipeline and Chinook pipelines tie to Many Islands Pipelinetie to Many Islands Pipeline

Morgan/Monchy – Northern Border cross Morgan/Monchy – Northern Border cross Montana heading to the Mid-WestMontana heading to the Mid-West» 485 BCF per year of imports485 BCF per year of imports

  

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Gas FactsGas Facts

Carway and Aden come into NorthWestern’s Carway and Aden come into NorthWestern’s transmission line, and the 15 BCF of imports transmission line, and the 15 BCF of imports equals about 38% of our 40 BCF annual market.equals about 38% of our 40 BCF annual market.

15 BCF at the average price of $3.90/mcf in 2010 15 BCF at the average price of $3.90/mcf in 2010 would be $58.5 millionwould be $58.5 million

Montana produces about 95 BCF and consumes Montana produces about 95 BCF and consumes 76 BCF with most of the difference going into 76 BCF with most of the difference going into Canada or Northern Border.Canada or Northern Border.

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Questions ????Questions ????

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