Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Shields & Company–Berenson & Co. Transmission Seminar (March 2009)
22 slides from Northwestern Energy's conference presentation, Mar 11, 2009
Slide 1: Transmission Seminar
Transmission Seminar Shields & Company–Berenson & Co. Dave Gates VP – Wholesale Operations March 11, 2009
Slide 2: forward-looking statement…
forward-looking statement… During the course of this presentation, there will be forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often address our expected future business and financial
Slide 3: who we are…
Located in relatively stable economies with potential grid expansion in the Northwest. who we are… (1) As of 12/31/08 (2) Book capitalization calculated as total debt, excluding capital leases, plus shareholders’ equity. 656,000 customers 392,000 electric 264,000 natural gas Approximately 123,000 sq
Slide 4: strong balance sheet…
Plan to maintain a 50%-55% debt to total capitalization ratio. strong balance sheet… Audited (Dollars in 000's) December 31 Cash 11,292 12,773 Restricted Cash 14,727 14,482 Accounts Receivable, Net 155,672 143,482 Inventories 70,741 63,586 Other Current Assets 60,985 44,031 Goodwill 355,128 355,128
Slide 5: credit ratings…
Fitch upgraded in January 2009. credit ratings… Fitch S&P Moody’s Senior Secured Rating BBB+ A- (MT) Baa2 BBB+ (SD) Senior Unsecured BBB BBB Baa3 Outlook Stable Stable Positive
Slide 6: transmission network summary …
6 transmission network summary … Asked to perform new functions Help meet RPS and other environmental goals Transmission investment driven by demand for renewables Investments with externality and coordination challenges State, regional national interests
Slide 7: Supply - potential wind development in MT…
Supply - potential wind development in MT…
Slide 8: Supply - potential wind development in MT…
Supply - potential wind development in MT…
Slide 9: generation plans shifting to wind…
New generation in Montana mostly wind and will need to find an end user. generation plans shifting to wind…
Slide 10: Demand - Western renewable standards…
Demand - Western renewable standards…
Slide 11: limited pathways from supply to demand…
limited pathways from supply to demand… The pathways to the market are limited: total rating – NOT available transfer capability
Slide 12: transmission construction over time…
transmission construction over time…
Slide 13: export “delivery” system for MSTI…
export “delivery” system for MSTI…
Slide 14: transmission – Colstrip upgrade…
In service January 1, 2012. transmission – Colstrip upgrade… Line already exists – represents an upgrade Upgrades substation capacity Increases load capacity of existing line by 500-600 MW’s NorthWestern announced joint development agreement with others Portland General Puget Sound Energy Pacificorp
Slide 15: transmission - collector system…
In service date sometime in 2014. transmission - collector system… 230 kV “Collector System” Informational meeting with customers in Spring 2009 Open Season early ‘09 to determine configuration Provides gathering system for new generation to access MSTI and network system benefits Cost estimate of “
Slide 16: transmission - MSTI…
transmission - MSTI… 500 Kv line from Townsend, Mont. to Idaho Power’s Midpoint Substation near Twin Falls, ID Respond to requests for interconnection Relieves congestion Enables high quality wind power to reach markets in the West and Southwest Environmental review, WECC path rating, and public con
Slide 17: MSTI continued...
MSTI continued... Purpose Meet requests for new transmission service Provide transmission for new generation Benefit Provide energy diversification and market competition Provide positive economic impact Need Improve system performance and flexibility Meet regional electrical demand
Slide 18: MSTI timeline…
MSTI timeline… FERC filing in January 2009 Information meeting spring 2009 Open Season anticipated in summer 2009 Draft EIS published late summer 2009 Final EIS Q1 2010 Record of decision – Q3 2010 Start construction 2011 Target energization Q1 2014
Slide 19: transmission siting and permitting experience…
transmission siting and permitting experience… Good relationship from decades of working together Experience sets expectations, and results in fewer issues Regulatory process could be revised to correspond to today’s transmission world Recognize regional/national concerns Shorter development time fo
Slide 20: generation – Mill Creek Station…
In service date for Mill Creek Generation Station = Jan 1, 2011 generation – Mill Creek Station… 120-150 MW plant proposed to be built near Anaconda, MT To be built for regulation services to balance supply and load for NWE’s Balancing Area Rate-based cost of service investment Estimated to cost app
Slide 21: cap ex spending – next few years…
Non-discretionary cap ex is funded 100% by free cash flow. Don’t anticipate needing equity unless we proceed with MSTI. We will move forward with the funding of these projects only when they make economic sense. MSTI project is now slated for early 2014 and capex has been modified accordingly. cap e
Slide 22: summary…
Objectives achieved related to focus on core business Solid foundation Growth prospects summary… Strong balance sheet No equity required for existing core business Modest debt maturities in short term Investment grade rated debt Increasing regulatory clarity Unique geographic location to expand elec
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