The recent order approves a plan under which Western Area Power Administration will help finance construction of the 214-mile, 230kV Montana-Alberta Tie Project from Great Falls, Montana, to Lethbridge, Alberta, through a $161m loan made available through the Recovery Act.
Jon Wellinghoff, chairman of FERC, said: “This transmission line will be an important link for consumers to get access to renewable energy, and it represents a solid, real-world example of how stimulus funds can and will help improve Americans’ lives.”
The financing arrangement, which closed on October 27, 2009, represents the first project financed by Western under authority of the Recovery Act. Under the arrangement, Western will have a one-twelfth ownership interest in the line, comprising approximately 18 miles of the line, and a conditional right to 50MW of southbound capacity. The right to the 50MW of capacity is subject to pre-existing arrangements for the southbound capacity with current interconnection customers.
Western’s use or sale of its transmission rights is subject to its open access tariff. Any capacity not used or sold by Western will be released back to Montana-Alberta to be marketed under Montana-Alberta’s tariff, with Western getting 75% of the revenues.
The project is expected to begin commercial operation by the fourth quarter of 2010.
