Why Southern Montana Electric Generation & Transmission Cooperative, Inc, was formed…
Headquartered in Billings, Montana, Southern Montana Electric Generation & Transmission Cooperative, Inc., (Southern Montana Electric) was formed in an effort to obtain cost-based, competitively-priced energy. Five former electric distribution cooperative members of the Central Montana Electric Cooperative formed the basis of Southern Montana Electric. The distribution member cooperatives who we serve are:
- Beartooth Electric Cooperative, Inc., headquartered in Red Lodge, Montana.
- Fergus Electric Cooperative, inc., headquartered in Lewistown, Montana.
- Mid-Yellowstone Electric Cooperative, Inc. headquartered in Hysham, Montana.
- Tongue River Electric Cooperative, Inc., headquartered in Ashland, Montana.
- Yellowstone Valley Electric Cooperative, Inc., headquartered at Huntley, Montana.
Shortly after the formation of Southern Montana Electric, the City of Great Falls joined the organization as the sixth member.
The five member cooperatives serve approximately 65,000 Montanans, and the City of Great Falls has a population of 57,000. Southern Montana Electric service area encompasses 22 counties in the states of Montana and Wyoming, nearly 58,000 square miles, or 40% of the total land area of Montana. The service area includes the City of Great Falls city limits, and suburban areas surrounding Billings, Montana.
Electrical energy and related services for distribution supplied to Southern Montana Electric originate from existing power purchase agreements with Western Area Power Administration (Western), Bonneville Power Administration (BPA), and PPL Montana (PPL). This energy flows across contracted paths of transmission owned by Western and NorthWestern Energy to delivery points within the cooperative systems. The energy is delivered to the members/consumers through distribution lines, substations, and other related infrastructure.
Southern Montana Electric contractual agreement with BPA began to expire in 2008, and will expire completely in 2011. Replacement of energy and related services provided through the BPA power purchase agreements will be subject to market influences, and substantial cost increases. Southern Montana Electric made the decision to explore other alternatives. Additional information related to these alternatives can be accessed in the “PROJECT” portion of this site.
