Coyote Generating Station is an economic energy source for NorthWestern Energy’s South Dakota customers

Rhea-AI Summary

NorthWestern Energy, owning a 10% stake in the Coyote Generating Station in Beulah, North Dakota, highlights its importance for 63,900 customers in South Dakota. Recent filings from Otter Tail Power Company indicate plans to withdraw ownership by 2028, questioning the plant's future. The Coyote Generating Station remains vital for energy reliability during extreme weather events. NorthWestern Energy is proactively assessing the plant's long-term value, which will be detailed in its upcoming South Dakota Energy Resource Procurement Plan due in late 2022.

Positive

• Coyote Generating Station provides reliable energy for NorthWestern Energy's customers.
• Ongoing analysis suggests continued economic viability of the plant.

Negative

• Otter Tail Power Company plans to withdraw ownership from the Coyote Generating Station by 2028.

SIOUX FALLS, S.D., Sept. 02, 2021 (GLOBE NEWSWIRE) -- The Coyote Generating Station, a jointly-owned coal plant in Beulah, North Dakota, is an important energy resource for NorthWestern Energy’s 63,900 South Dakota customers. NorthWestern Energy owns a 10% interest in the facility.

On Sept. 1, Otter Tail Power Company, a 35% owner of the facility, filed an integrated resource plan with its regulatory commissions in Minnesota, North Dakota and South Dakota. The plan concludes that continued operation of the plant is no longer in the best interest of Otter Tail Power’s customers and requests authorization to withdraw from ownership in 2028.  

For NorthWestern Energy’s customers, the Coyote Generating Station remains a critical 24/7 on-demand generation energy source, reliable when demand is high, such as the extreme winter weather in February 2021 that required rolling blackouts to keep the grid stable and during the extreme heat experienced this summer. The joint owners continue to collaborate in analyzing data and weighing decisions that impact the plant, our employees, customers and communities. However, NorthWestern Energy’s ongoing analysis indicates the Coyote Generating Station will continue to provide economic and reliable energy for our customers well into the future absent any new state or federal regulatory requirements or significant increases in operating costs.

NorthWestern Energy’s South Dakota Energy Resource Procurement Plan, a biannual plan, will be submitted to the South Dakota Public Utilities Commission in late 2022. The long-term value of the Coyote Generating Station will be addressed within the plan.

Follow us on Facebook or on Twitter (@NWEinfo).

About NorthWestern Energy (Nasdaq: NWE)
NorthWestern provides electricity and / or natural gas to approximately 743,000 customers in Montana, South Dakota, and Nebraska. We have generated and distributed electricity in South Dakota and distributed natural gas in South Dakota and Nebraska since 1923 and have generated and distributed electricity and distributed natural gas in Montana since 2002. More information on NorthWestern is available on the company’s website at www.northwesternenergy.com.

Investor Relations Contact: Travis Meyer 605-978-2967 travis.meyer@northwestern.com

Media Contact: Jo Dee Black 866-622-8081 jodee.black@northwestern.com

FAQ

What is the significance of the Coyote Generating Station for NorthWestern Energy?

The Coyote Generating Station is crucial for providing reliable energy to NorthWestern Energy's 63,900 customers in South Dakota.

What are the implications of Otter Tail Power's decision regarding the Coyote Generating Station?

Otter Tail Power's plan to withdraw ownership by 2028 raises concerns about the future operation and ownership structure of the Coyote Generating Station.

When will NorthWestern Energy submit its Energy Resource Procurement Plan?

NorthWestern Energy will submit its South Dakota Energy Resource Procurement Plan to the Public Utilities Commission in late 2022.

How does NorthWestern Energy assess the future of the Coyote Generating Station?

NorthWestern Energy is conducting ongoing analyses to determine the economic and operational viability of the Coyote Generating Station.