1. CREPC Meeting Ray Brush NorthWestern Energy April 20, 2005

2. 2 Open Season Typical Open SeasonTypical Open Season  Transmission Developer has Transmission Plan and seeks participants and/or parties to contract for capacity. Northwestern Open SeasonNorthwestern Open Season  Interest in New Capacity in Montana- Southeast Idaho (AMPS).  Develop transmission additions to provide service for new capacity.  Allows consideration of multiple needs in one study.  Within the current FERC Process for Transmission Service Requests.  If works out will expand to other paths.

3. 3 Why Montana-Idaho Path (Path 18)? RMATS StudyRMATS Study Recent RFPs for Resources (IPC and PAC-Utah)Recent RFPs for Resources (IPC and PAC-Utah) SPP need for access to additional resources.SPP need for access to additional resources. Resource development proposals in Montana.Resource development proposals in Montana. Fewer Siting IssuesFewer Siting Issues NWE’s Firm capacity in existing facilities fully committed.NWE’s Firm capacity in existing facilities fully committed.

4. 4 NorthWestern’s Open Season Process Expression of Interest (EOI)Expression of Interest (EOI) Open Season Capacity Request periodOpen Season Capacity Request period  Not require deposit  System Impact Studies at NWE’s expense.  Current requests considered. System Impact Study ResultsSystem Impact Study Results Facilities StudyFacilities Study  Deposit Required to continue Facility Study ResultsFacility Study Results Contract for New CapacityContract for New Capacity

5. 5 Results to Date EOIEOI  800 MW of new capacity Open Season Capacity RequestOpen Season Capacity Request  About 2250 MW signed up for new capacity System Impact StudySystem Impact Study  System Additions range from new 230 kV line up to a new 500 kV line.

6. 6 Open Season Benefits Brings generators/suppliers/load serving entities togetherBrings generators/suppliers/load serving entities together Allows “preview” of system impacts prior to significant financial commitmentAllows “preview” of system impacts prior to significant financial commitment Potentially eliminates “lumpiness” in transmission planning and construction (Ex. 200 MW expansion that no single party can commit to)Potentially eliminates “lumpiness” in transmission planning and construction (Ex. 200 MW expansion that no single party can commit to) All parties cooperate, including the transmission provider, to solve regionwide problem of “what comes first, transmission or generation”All parties cooperate, including the transmission provider, to solve regionwide problem of “what comes first, transmission or generation”

7. 7 QuestionsandComments