The Federal Energy Regulatory Commission (FERC), which regulates interstate electricity transmission, signed off on the Western Power Administration’s plan to help finance the Montana-Alberta Tie Ltd. (MATL) using $161m in loan authority through the federal economic stimulus.

"This transmission line will be an important link for consumers to get access to renewable energy, and it represents a solid, real-world example of how stimulus funds can and will help improve Americans’ lives,” FERC Chairman Jon Wellinghoff states.

The financing arrangement, announced earlier this autumn, leaves Tonbridge Power of Toronto to cover the balance of the $215m project. US contractors are being used for the project.

Through the financing, Western, a regional power marketing and transmission administration within the US Department of Energy, gains a one-twelfth ownership interest in the 230-kilovolt transmission line, which will follow a route from Great Falls, Montana, to Lethbridge, Alberta, southeast of Calgary. The administration will also have a conditional right to 50 megawatts of southbound capacity, subject to its open access tariff.

The route was challenged by three Alberta landowners. Their appeal to the Supreme Court of Canada was denied last month. “This was the last remaining road block and we plan to start construction as soon as possible,” Bob Williams, an executive with MATL, says of the ruling.

The bidirectional line would have capacity to carry 300 megawatts (MW) south to north or north to south. Tonbridge has long-term contracts from three wind power developers for those amounts: Spanish developer Naturener, which just marked completion of the 210MW Glacier Wind Farm, Montana’s largest, has signed up the entire northbound capacity for its planned 309MW Rim Rock project. Invenergy and Wind Hunter have the southbound capacity.

Tonbridge says the line will improve electricity reliability in the areas it serves and provide access to the grid for nearly $1bn in US wind power projects.

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.

Commercial operation is scheduled to begin by late 2010.