Montana-Dakota Utilities Signs Agreement to Purchase North Dakota Wind Farm
November 24 2014 - 8:30AM
Business Wire
Montana-Dakota Utilities Co., a division of MDU Resources Group
(NYSE:MDU) announced today that it has signed an agreement to
purchase a North Dakota wind farm to be developed by ALLETE Clean
Energy, a subsidiary of ALLETE, Inc. (NYSE:ALE).
The wind project, located near Hettinger, N.D., and comprised of
43 turbines producing 107.5 megawatts of electricity, is
anticipated to be completed in December 2015. The project’s cost is
approximately $200 million and the purchase is subject to
regulatory approvals.
“We are committed to investing capital resources to meet the
needs of our customers and our growing legacy business,” said David
L. Goodin, president and CEO of MDU Resources Group. “This project
is a positive step in executing that plan and will be a great
addition to Montana-Dakota’s generation portfolio. We believe this
will be a great partnership with ALLETE.”
Montana-Dakota originally signed a power purchase agreement with
Thunder Spirit Wind in October 2013 to purchase the output of the
wind farm. Montana-Dakota determined that owning and operating the
wind farm is the best long-term solution to meet customer need for
energy. Montana-Dakota partnered with ALLETE Clean Energy (ACE) on
an agreement for ACE to acquire the Thunder Spirit Wind project,
complete the development and sell the completed project to
Montana-Dakota. ALLETE has developed other wind projects in North
Dakota.
“Our electric demand continues to increase and this project is a
great opportunity to increase our electric generation to meet that
customer demand. Our customer energy requirements are expected to
grow at five percent per year for the next five years,” said Frank
Morehouse, president and CEO of Montana-Dakota. “Not only does this
project provide needed generation, but it also further diversifies
our generation portfolio, boosting our renewable segment to 20
percent.”
The wind farm location is beneficial in that it allows
Montana-Dakota to connect the project to its transmission system in
an area the company already provides electric service, further
enhancing the company’s deliverability of power to its
customers.
“We’re proud that MDU chose ACE to develop a project that will
benefit its customers and diversify the mix of energy sources. Wind
energy is an advantageous resource in North Dakota, and ALLETE
Clean Energy is anxious to apply our experience to bring the
project to fruition,” said ALLETE Clean Energy President Eric
Norberg.
Forward-Looking StatementsThe information in this release
includes certain forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. The
forward-looking statements contained in this release, including
statements by the president and chief executive officer of MDU
Resources and president and CEO of Montana-Dakota, are expressed in
good faith and are believed by the company to have a reasonable
basis. Nonetheless, actual results may differ materially from the
projected results expressed in the forward-looking statements.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include
receiving the necessary permits and regulatory approvals in a
timely manner, the schedule and costs to complete, qualification
for tax credits, other risks incidental to the operation of a wind
farm; and the effects on operations of extensive environmental laws
and regulations. For a discussion of other important factors that
could cause actual results to differ materially from those
expressed in the forward-looking statements, refer to Item 1A –
Risk Factors in MDU Resources’ most recent Form 10-K and Form
10-Q.
About MDU ResourcesMDU Resources Group, Inc., a member of
the S&P MidCap 400 index, provides value-added natural resource
products and related services that are essential to energy and
transportation infrastructure, including regulated utilities and
pipelines, construction materials and services and exploration and
production. For more information about MDU Resources, see the
company's website at www.mdu.com or contact the Investor Relations
Department at investor@mduresources.com.
MDU Resources Group, Inc.Financial:Phyllis A.
Rittenbach, director - investor relations,
701-530-1057orMedia:Mark Hanson, senior public relations
representative, 701-530-1093mark.hanson@mduresources.com
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