NWE - NorthWestern to boost stake in Colstrip power plant via Avista deal

NorthWestern Energy ( NASDAQ: NWE ) said Monday it agreed to acquire Avista's ( NYSE: AVA ) share of coal-powered production from the Colstrip power plant in Montana, effective in January 2026.

Avista ( AVA ), which already is required to end its investment in the Colstrip plant at the end of 2025 because of a settlement agreement with utility regulators in Washington state, said it will transfer its interest at no charge to NorthWestern ( NWE ).

The deal would give NorthWestern ( NWE ) the authority to use up to 444 MW of power from Colstrip units 3 and 4 - double its current share; the company said it will be responsible for operational costs for the 15% shares of units 3 and 4 when ownership is transferred, while Avista ( AVA ) will retain its obligation for its portion of environmental and decommissioning costs associated with the future closure of the plant.

NorthWestern ( NWE ) said "acquiring more generation at no purchase price allows [it] to continue to make other necessary investments in our Montana energy system with less impact on customers' bills."

Avista's ( AVA ) valuation "is rather stretched right now but the company could be a good buy on dips," Power Hedge writes in an analysis published recently on Seeking Alpha .

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