State-of-the-art combined-cycle facility is expected to be among the most efficient and lowest-emitting gas-fired generation resources in the United States
Flathead Electric Cooperative has entered into an agreement to participate in a new combined-cycle natural gas generating facility in Idaho as part of the Co-op’s long-term strategy to maintain reliable, affordable power for our members.
The facility is being developed by PNGC Power and Kindle Energy to provide a dispatchable resource that can generate power when needed to help meet growing demand across the Pacific Northwest.
Planned as a state-of-the-art combined-cycle facility, the project is expected to be among the most efficient and lowest-emitting gas-fired generation resources in the United States. By using advanced generation technology, the plant is intended to produce more electricity with less fuel and water than older thermal resources, lowering emissions intensity while providing the dependable power needed to support a modern grid. Purchasing a portion of the power generated by this facility is part of Flathead Electric Cooperative’s long-term power supply strategy.
Read the project announcement from PNGC Power and Kindle Energy.
Natural gas generation remains one of the most reliable and dispatchable resources available today. Unlike wind and solar, it can produce electricity on demand, which is critical during peak usage periods, extreme weather events, or when renewable resources are not producing.
In today’s environment, natural gas is also one of the only proven, scalable dispatchable resources that can be developed and brought online within the timeframe needed to address growing reliability concerns. Other technologies, such as long-duration storage, advanced nuclear, or hydrogen, show promise, but are not yet widely available at the scale or cost required to meet near-term demand.
In the Pacific Northwest, where electricity demand is increasing and some existing resources are retiring, having firm, around-the-clock generation is essential. Natural gas plays an important role in maintaining reliability while the energy system continues to evolve and new technologies mature.
Additional Resources:
- Pacific Northwest Needs Historic Building Boom to Meet Winter Peaks, E3 Study Concludes | News Data | (link)
- Natural gas still crucial to the WA grid; utilities need to coordinate | The Seattle Times | (link)
- Groups Question Need for More Natural Gas Amid Rise in Demand | News Data | (link)
- As NW faces rolling blackouts, study says renewable energy may not be enough | Oregon Public Broadcasting | (link)
- Montanans want more solar, natural gas development, are less interested in new coal plants | Montana Free Press | (link)
The timing reflects growing reliability concerns across the Pacific Northwest. Electricity demand is increasing, while some existing power plants are retiring and new resources are not being added quickly enough to keep pace. This has led to tighter supply conditions, particularly during peak demand periods.
Acting now allows Flathead Electric Cooperative, through PNGC Power, to secure needed capacity before shortages become more severe and more expensive to address. Planning ahead helps ensure reliable service for our members and avoids the higher costs and risks associated with waiting until the market is even tighter.
Learn More About Regional Reliability
- 2026 Northwest Regional Forecast | Pacific Northwest Utilities Conference Committee (PNUCC)
- Resource Adequacy and the Energy Transition in the Pacific Northwest | Energy + Environmental Economics (E3)
- 2025 Western Assessment of Resource Adequacy | Western Electricity Coordinating Council (WECC)
- Long-Term Reliability Assessment, January 2026 | North American Electric Reliability Corporation (NERC)
No. Flathead Electric Cooperative continues to support an “all-of-the-above” approach that includes renewables, energy efficiency, market purchases, and firm generation resources. Resources like natural gas help enable more renewable energy by providing backup power when wind and solar are not available. A reliable grid requires both intermittent and dispatchable resources working together, and this project is one piece of that balanced strategy.
No. This project is not driving this year’s rate adjustment. Current rate changes are primarily due to near-term cost pressures, including inflation, higher wholesale power prices, and continued investment in maintaining and improving Flathead Electric’s local system. This agreement is part of long-term power supply planning, not a short-term cost driver. The agreement structure protects members from paying upfront construction costs; the developer assumes that risk, and Flathead Electric Cooperative only pays for power once the plant is operating.
This agreement is intended to help stabilize rates over the long term. By securing access to reliable, dispatchable power now, Flathead Electric Cooperative can reduce exposure to volatile wholesale market prices and avoid costly price spikes during periods of high demand. The agreement structure spreads costs over time and shifts upfront capital risk away from members. While all power supply resources have costs, planning ahead in this way helps avoid larger and more unpredictable rate increases in the future while ensuring reliable service for our members.
Large-scale natural gas generation requires access to high-capacity natural gas pipelines and transmission infrastructure capable of delivering power reliably across the region. The selected site in northern Idaho is adjacent to existing natural gas generation and already has both the pipeline capacity and transmission network in place, making it an ideal location for this type of facility.
Building similar infrastructure in Montana, particularly expanding large-capacity natural gas pipelines, would be significantly more complex, and costly for our members, and timelines would be substantially longer. By locating the project where infrastructure already exists, the project can be developed more efficiently and at a lower overall cost.
Flathead Electric Cooperative is part of a regional power network, and electricity does not need to be generated locally to serve our members. Power from this facility will be delivered over existing transmission lines that already supply our system. FEC continues to work closely with Bonneville Power Administration to add transmission capacity to serve our growing area.
No, this power is not being purchased to serve data centers. This agreement is focused on meeting Flathead Electric Cooperative’s organic load growth and ensuring reliable service for our members. In addition to steady increases in everyday electricity use, we must also plan for peak demand (periods when energy use is at its highest, such as during extreme cold snaps). Resources like this are essential to ensure we have enough capacity available to meet those highest-demand moments, not just average usage, and to keep power reliable when our members need it most.
PNGC Power is an electric generation and transmission cooperative owned by 25 Northwest electric distribution cooperative utilities with service territory in seven western states (Idaho, Montana, Nevada, Oregon, Utah, Washington, and Wyoming). The cooperative creates value for its member systems by providing power supply, transmission, and other management services. PNGC Power is an aggregator of geographically diverse loads in the region and became the first electric cooperative in the country to receive a power marketing license from the Federal Energy Regulatory Commission. More information about PNGC Power can be found at www.pngcpower.com.
Flathead Electric Cooperative joined PNCG Power in 2022 to help secure its long-term power supply, leverage the collective strength of a larger diverse cooperative, and address the evolving needs of its members.
