The financing agreement between DOE’s Western Area Power Administration (WAPA), a 15-state power marketing group, and Tonbridge Power of Toronto is being finalized. Money to be used will come from US economic stimulus funds.

Tonbridge will provide most of the remaining project costs, says chief executive Johan Van't Hof. He tells Recharge that the company will invest about $65m to buy euipment such as transformers and to acquire land rights.

The accord calls for US contractors and suppliers to get all contracts for construction, equipment and supplies for the transmission project, where available.

The 230-kilovolt Montana-Alberta Tie line would connect substations outside Great Falls, Montana, and Lethbridge, Alberta province, southeast of Calgary.

The bidirectional line would have capacity to carry 300 megawatts in each direction. Tonbridge has long-term contracts from three wind power developers for those amounts.

Line capacity expansions are expected as additional wind farms come online in Montana. Tonbridge estimates the line will generate $28.4m in first year revenue operating at 100% capacity..

"By integrating renewable energy sources onto the electrical grid now, we are helping to shape America's future economy, powered by clean, secure and affordable electricity," says Energy Secretary Steven Chu.

"This project will help put Americans to work and build the transmission networks needed to bring renewable energy to consumers across the West," he adds.

Project construction by a Montana company is expected to begin this fall and will create dozens of jobs. Once fully energized in early 2011, the project will be capable of delivering between 300 megawatts and 600MW of wind energy – enough to power 150,000 to 300,000 homes, according to DOE.

Three Alberta landowners are challenging the line's route. They lost an appeal with the Alberta Court of Appeal and are waiting to hear if the Supreme Court of Canada will hear their case.

"Transmission is the key to renewable energy development in Montana and the line is the first of many projects we hope to see developed in Montana," says Governor Brian Schweitzer.

"With the nation's best wind resources, we have a critical role to play in the national energy crisis, but we can't do so without new and expanded transmission lines," he notes.

Once the line is operating, Spain’s Naturener has said it will go ahead with the proposed $800m, 309MW Rim Rock wind farm in northern Montana near its border with Alberta. Several other wind projects are also likely as transmission capacity becomes available.