Montana-Dakota Utilities Co., a division of MDU Resources Group (MDU) announced today that it has signed an agreement to purchase a North Dakota wind farm to be developed by ALLETE Clean Energy, a unit of ALLETE Inc.
The wind power project, located near Hettinger, North Dakota, and comprised of 43 turbines producing 107.5 MW of electricity, is slated for completion in December 2015. The project’s cost is about $200 million and the purchase is subject to regulatory approvals.
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.
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.