Details below, but SMG&T and NorthWestern Energy are now embroiled with FERC over whether SMG&T understood how to reserve transmission. If SMG&T misread their contract, and failed to understand what they committed to in 2005 during a rush to secure markets for excess energy from Highwood, it could mean a $53 million dollar liability for the facility.
Background
In late August, Southern Montana Electric Generation & Transmission Cooperative, filed a complaint against NorthWestern Energy alleging violation of their open access transmission policies and relevant FERC Orders. The complaint revolved around particular reservation for transmission capacity, a 65 MW request, which was placed in 2005 and went live this spring. That capacity, as SMG&T details, was necessary for the sale of excess generation from their now defunct coal version of the Highwood Generation Station.
According to SMG&T's filing, the request carries an economic value of approximately $53 million. NorthWestern Energy recently posted their response, and PPL has requested intervenor access in the docket. The entire affair is docketed at EL10-82 on the FERC website.
Watch this blog for more updates.
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