The line would allow the transfer of renewable and other energy sources from states of Montana, Idaho and other regional markets.
In addition, it will allow BPA to serve customers in US states of Idaho, western Wyoming and Montana and provide other operational benefits.
NorthWestern Energy vice president Mike Cashell said the company is looking forward to work with BPA on the project to determine how beneficial it would be in serving its customers in the US states.
Currently, BPA serves these customers through agreements with PacifiCorp using the South Idaho Exchange Agreement and PacifiCorp General Transfer Agreement.
As the South Idaho Exchange Agreement will terminate in 2016, BPA is assessing various alternatives to serve its customers affected by the termination.
Earlier this week, NorthWestern and BPA signed a memorandum of understanding (MOU) which stipulates the parties seek to complete economic and engineering viability studies and a capacity and cost allocation methodology by 31 July 2012.
The result of the studies will enable BPA to determine whether or not to consider future agreements for participation in the MSTI project.
Furthermore, NorthWestern is also planning to conduct an open season that will provide utilities, independent power producers an opportunity to subscribe capacity on the MSTI line.
In 2008, NorthWestern started an environmental review of the 500-kilovolt project while the draft environmental impact statement will be issued in mid-2012.
The proposed line would extend from a new proposed substation five miles south of Townsend, Mont., to Idaho Power Company’s existing Midpoint Substation near Jerome, Idaho.
