BISMARCK, N.D., March 1, 2018 /PRNewswire/ -- Montana-Dakota
Utilities Co., a division of MDU Resources Group (NYSE: MDU),
announced today that it has signed an agreement to purchase a
North Dakota wind farm expansion
to be developed by ALLETE Clean Energy (ACE), a subsidiary of
ALLETE, Inc. (NYSE: ALE).
The expansion of Thunder Spirit Wind, located near Hettinger, North Dakota, will boost the
combined production at the wind farm to approximately 155 megawatts
of renewable energy, and will increase Montana-Dakota's generation portfolio from 22
percent renewables to 27 percent.
"We are committed to investing capital resources to meet the
needs of our customers and our growing legacy business," said
David L. Goodin, president and CEO
of MDU Resources Group. "This project is a positive step in
executing that plan and will be a great cost-effective addition to
Montana-Dakota's generation
portfolio."
The original 107.5-MW Thunder Spirit Wind project was
constructed by ACE and included 43 turbines; it was purchased by
Montana-Dakota in December 2015. The expansion calls for 16
turbines producing 48 MW.
The project's cost is approximately $85
million and is expected to be online in late 2018.
Montana-Dakota originally
signed a power purchase agreement with ACE for the expansion's
generation, with an option to purchase the project. Montana-Dakota determined that owning the
project was the least-cost option for its customers. The North
Dakota Public Service Commission approved Montana-Dakota's request for an advance
determination of prudence for purchasing the expansion in
November 2017, noting that
electricity produced at the site is expected to be more economical
than energy purchased on the market.
"Our relationship with ACE on the first phase of Thunder Spirit
Wind proved to be a winning formula. We need 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 our
Montana-Dakota customers," said
company President and CEO Nicole
Kivisto.
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.
"We're proud that MDU again chose ACE to develop and build a
second wind project that will benefit its customers, the state of
North Dakota and the local
Adams County economy. Wind energy
is a valuable resource in North
Dakota, and ALLETE Clean Energy is looking forward to
applying our experience to bring the project to fruition," said
Allan S. Rudeck Jr., president of
ALLETE Clean Energy.
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 statements by the president and chief
executive officer of MDU Resources and president and CEO of
Montana-Dakota, 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.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements
include receiving the necessary permits and regulatory
approvals in a timely manner, the schedule and costs to complete,
qualification for tax credits, other risks incidental to the
operation of a wind farm; and the effects on operations of
extensive environmental laws and regulations. For a discussion of
other 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 MDU Resources
MDU Resources Group, Inc., a member of the S&P MidCap 400
index and the S&P High-Yield Dividend Aristocrats index, is
Building a Strong America® by providing essential products and
services through its regulated energy delivery and construction
materials and services businesses. For more information about MDU
Resources, see the company's website at www.mdu.com
or contact the Investor Relations Department at
investor@mduresources.com.
Contacts
Financial:
Jason Vollmer, vice president, chief
financial officer and treasurer, 701-530-1755
Media:
Mark Hanson, senior public relations
representative, 701-530-1093
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SOURCE MDU Resources Group, Inc.