NorthWestern Energy, a utility company based in Sioux Falls, SD, announced on December 10, 2019 that it plans to purchase Puget Sound Energy's (PSE) 25% share of Montana's coal-fired Colstrip Unit 4 for just $1.[1] If the plan is approved by the Montana Public Service Commission and Washington Utilities Transportation Commission, NorthWestern would procure 185 MW of generation from Colstrip Unit 4 which would bring its totally share of the unit to 55%. According to NorthWestern, the purchase, although contrary to its carbon-reduction goals, will help the utility to meet a winter peak capacity deficit and preserve reliability for its customers. Currently, NorthWestern’s energy portfolio for Montana is 60% carbon-free. The utility will set aside the benefits from the transaction to address the environmental costs associated with its existing ownership when the time comes to retire Unit 4. For PSE, the sale of its share of the Colstrip unit will help the utility reduce its coal fleet by 50% and give them a lead on meeting Washington state’s requirement for electric utilities to eliminate coal-fired generation from their portfolios in the next five years.[2],[3]

[1] http://www3.northwesternenergy.com/our-company/media-center/current/news-article/2019/12/10/NorthWestern-Energy-to-acquire-25-share-of-Colstrip-Unit-4-from-Puget-Sound-Energy

[2] https://www.pse.com/press-release/details/pse-moves-closer-to-coal-free-electricity-years-ahead-of-schedule?utm_source=Social&utm_medium=TWITTER&utm_campaign=Engagement

[3] https://www.utc.wa.gov/regulatedIndustries/utilities/energy/Pages/CETAoverview.aspx