FERC OKs stimulus for Montana-Alberta power line

NEW YORK (Reuters) - The U.S. Federal Energy Regulatory Commission (FERC) on Thursday approved a stimulus financing arrangement for the Montana-Alberta transmission line to help connect consumers with renewable power sources.

FERC approved of a plan by the U.S. Department of Energy's Western Area Power Administration to use a $161 million loan from the American Reinvestment and Recovery Act of 2009 to finance the project.

The 230-kilovolt line will run 214-miles from Great Falls, Montana to Lethbridge, Alberta.

Under the arrangement, Western will have a one-twelfth ownership interest in the line, comprising about 18 miles, and a conditional right to 50 megawatts of southbound capacity, which is enough to power about 50,000 homes.

Tonbridge Power Inc, the Toronto-based project developer, planned to start construction by the end of 2009, with commercial operation by the fourth quarter of 2010.

In the past, Tonbridge said the line would be able to move about 300 megawatts north or south and capacity was already under long-term contract primarily with wind farms.

In the future, Tonbridge said it hoped to expand the project.

(Reporting by Scott DiSavino; Editing by Christian Wiessner)