Avista turning over Montana power plant interests to NorthWestern Energy in 2025

Avista (AVA) and NorthWestern Energy (NWE) entered an agreement through which Avista will turn over its interest in the Colstrip coal-fired power plant to NorthWestern on December 31, 2025. Through the transaction, NorthWestern will assume ownership of the 222 MW generating capacity that is currently owned by Avista, along with its related interest in the plant, plant equipment, rights and obligations. Avista’s integrated resource plan has indicated that Colstrip will no longer be economic for its customers in Washington and Idaho after 2025. Under the agreement, Avista retains its existing remediation obligations and enters into a vote sharing agreement with NorthWestern to retain voting rights in regard to any decision that might be made with respect to remediation activities. In addition, while NorthWestern will have the right to exercise Avista’s vote with respect to capital expenditures between now and 2025, Avista’s contribution to those expenditures is limited to its pro rata share between the date of the expenditure and 2025, ensuring that the costs directly benefit Avista customers and don’t extend the life of the plant. The Agreement also preserves Avista’s rights in the Colstrip transmission system, giving Avista the ability to leverage capacity on that system for future renewables projects in furtherance of its clean energy goals. Each of the owners will have a 90 day period in which to evaluate the transaction and determine whether to exercise their respective right of first refusal as to a portion of the generation being turned over to NorthWestern.