BISMARCK, N.D., Jan. 3, 2017 /PRNewswire/ -- Montana-Dakota
Utilities Co., a division of MDU Resources Group, Inc. (NYSE: MDU),
today announced it signed a 25-year agreement with a subsidiary of
ALLETE Clean Energy (ACE) to purchase the power from a wind farm
expansion in southwest North
Dakota. The agreement also includes an option for
Montana-Dakota to buy the project
at the close of construction.
The expansion of Thunder Spirit Wind, located near Hettinger, ND, will boost the combined
production at the wind farm to approximately 150 megawatts of
renewable energy and will increase Montana-Dakota's generation portfolio from
approximately 20 percent renewables to 25 percent. The original
107.5-megawatt Thunder Spirit Wind project was constructed by ACE
and included 43 turbines; it was purchased by Montana-Dakota in December 2015. The expansion includes 13 to 16
turbines, depending on the turbine size selected, and will be
constructed by ACE. It is expected to be online in December 2018.
"Our relationship with ACE on the first phase of Thunder Spirit
Wind proved to be a winning formula. We are in need of additional
energy to meet our growing demands, and with the easements,
interconnection to the grid and permits already in place from the
first phase of Thunder Spirit Wind, it makes this a great project
for Montana-Dakota," said company
President and CEO Nicole
Kivisto.
If Montana-Dakota buys the
project, the capital will be incremental to the Nov. 22 announcement by MDU Resources regarding
the utility group's capital expenditure forecast of $1.24 billion for 2017 through 2021. Construction
costs for the project are estimated to be $85 million.
Forward-Looking Statements
The 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 capital expenditure forecasts, estimated
construction costs and statements by the president and CEO of
Montana-Dakota Utilities, 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. For a discussion of
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 Montana-Dakota
Utilities
Montana-Dakota Utilities Co. distributes
natural gas and generates, transmits and distributes electricity
and provides related services in the northern Great Plains. The
company serves approximately 142,700 electric customers and 267,500
natural gas customers in 262 communities in North Dakota, South
Dakota, Montana and
Wyoming. Montana-Dakota is a division of MDU Resources
Group, Inc., which provides essential products and services through
its regulated energy delivery and construction materials and
services businesses. It is traded on the New York Stock Exchange as
"MDU." For more information about MDU Resources, visit the
company's website at www.mdu.com. For more information about
Montana-Dakota, visit
www.montana-dakota.com.
Contacts
Financial: Janelle Steiner,
assistant treasurer, 701-530-1031
Media: Mark Hanson, senior
public relations representative, 701-530-1093 or
mark.hanson@mduresources.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/montana-dakota-utilities-co-signs-agreement-to-purchase-power-from-wind-farm-expansion-300384598.html
SOURCE MDU Resources Group, Inc.