NorthWestern Energy, a provider of electricity and natural gas, has entered into a memorandum of understanding to purchase 25MW Spion Kop wind project to be developed by Compass Wind, a community-based wind project developer, in central Montana.

NorthWestern Energy, a provider of electricity and natural gas, has entered into a memorandum of understanding to purchase 25MW Spion Kop wind project to be developed by Compass Wind, a community-based wind project developer, in central Montana.

The project was submitted to NorthWestern with regards to the 2009 community renewable resource solicitation and adheres to the Montana legislation that provides for the reintegration of the utility.

The wind project is planned to be placed into the Montana utility's rate base with both the energy and associated renewable energy credits to be utilized to meet future renewable portfolio standards obligations.

Construction on the project would commence upon the execution of a definitive agreement in the first quarter of 2011 followed by a favorable ruling from the Montana Public Service Commission early in 2012 with commercial operation anticipated by the end of 2012.