Avista has signed a nonbinding memorandum of understanding (MoU) with North Plains Connector, a fully owned subsidiary of Grid United, for collaboration on the North Plains Connector project.

This initiative involves the development of a high-voltage direct-current (HVDC) transmission line stretching approximately 420 miles, with endpoints near Bismarck, North Dakota, and Colstrip, Montana. Avista’s involvement in the project is anticipated to include a 10% ownership stake, subject to finalised agreements.

According to the MoU, North Plains Connector will continue to fund the project’s development. Avista’s financial investment is expected to begin once the transmission line becomes operational.

This year has marked substantial progress for the North Plains Connector, highlighting the pressing need for modern transmission infrastructure.

In August, the US Department of Energy conditionally awarded $700m to the Montana Department of Commerce through the GRIP (Grid Resilience and Innovation Partnerships) programme, affirming federal support for the project’s development.

By October, the project advanced further by initiating the NEPA (National Environmental Policy Act) process required for federal permitting, keeping it on course for a projected operational date in 2032.

The North Plains Connector will create the nation’s first HVDC transmission link among three regional US electric energy markets – the Midcontinent Independent System Operator, the Western Interconnection, and the Southwest Power Pool.

This connection will enable greater flexibility and resource sharing across multiple time zones.

As a member of the North Plains Interregional Innovation (NPC II) consortium, Avista joined eight other utilities in backing the $700m GRIP grant awarded to the Montana Department of Commerce.

Avista is the first consortium member to confirm its involvement in the North Plains Connector since the GRIP grant selection was announced in August.

The North Plains Connector will provide Avista with 300MW of transfer capacity, enhancing access to diverse energy resources, expanding wholesale market options, and alleviating congestion within the western transmission network.

Avista CEO Dennis Vermillion said: “Market access and diversity of resources are increasingly important for Avista. North Plains Connector will provide Avista better access to both of these needs and is best suited to meet Avista’s unique system challenges.

“North Plains Connector provides a new, innovative transmission pathway that supports Avista’s strategic priorities by offering access to low-cost renewable generation to benefit our customers and further strengthen the grid.”