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Avista to acquire 10% stake in 3 GW east-west transmission line

Umito November 5, 2024

The connection will facilitate resource sharing and improve network flexibility across different time zones. Credit: chuyuss/Shutterstock.

Avista entered into a non-binding memorandum of understanding with North Plains Connector, a wholly owned entity of Grid United, for a 10% interest in the 3 GW U.S. East-West Transmission Line project.

North Plains Connector connects the eastern and western United States power grids in Montana and North Dakota.

The project, which will be open to all sources of electricity production, will be able to transport electricity in both directions. The 420-mile high-voltage direct current (HVDC) transmission line, with endpoints near Bismarck, North Dakota, and Colstrip, Montana, will improve connectivity for the U.S. energy market electric.

Michael Skelly, CEO of Grid United, said, “We are excited to move forward with Avista in the development of the North Plains Connector.

“With growing commercial interest, we are confident that this project will continue to attract engagement through the end of the year.”

The agreement signifies Avista’s intention to invest in the project once it is operational. North Plains Connector will continue to fund development until then.

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In August 2024, the North Plains Connector project received a boost from the U.S. Department of Energy with a $700 million GRIP conditional award to the Montana Department of Commerce.

Progress continued in October as the project entered the NEPA federal permitting process – on track for its planned 2032 operational date.

The North Plains Connector is expected to be the first HVDC transmission line connecting three major U.S. electric power markets: the Midcontinent Independent System Operator, the Western Interconnection and the Southwest Power Pool.

This connection will facilitate resource sharing and improve network flexibility across different time zones.

Avista, now a confirmed participant in the North Plains Connector following the GRIP grant announcement, is part of the NPC II consortium of eight utilities supporting the project.

The company’s participation will secure 300 MW of transfer capacity, enabling access to a variety of energy resources, improving market options and easing congestion on the Western transmission network.

Dennis Vermillion, CEO of Avista, said: “Market access and resource diversity are increasingly important to Avista. North Plains Connector will provide Avista with greater access to both of these needs and is best suited to address the unique challenges of Avista’s system.

“North Plains Connector offers an innovative new transportation route that supports Avista’s strategic priorities by providing access to low-cost renewable generation to benefit our customers and further strengthening the grid.

In March 2024, Grid United in partnership with Hitachi Energy to deploy its HVDC technology for transmission projects in the United States.