SIOUX FALLS, S.D./GREAT FALLS, MT ‑ Dec. 12, 2001 ‑ NorthWestern Corporation (NYSE:NOR) today announced that it has signed a limited notice to proceed with Kelly Group, LLC of Vancouver, Wash., to handle engineering, procurement and construction activities for the development of NorthWestern's Montana First Megawatts Project, a 240‑megawatt combined‑cycle, natural gas-­fired electricity generating facility, being built 1.7 miles north of Great Falls, Mont.

The facility, which will cost more than $140 million to build, will use General Electric's most advanced low‑emission and efficient generation technology to produce electricity at competitive prices with minimal impact to Montana's environment. The project will offer substantial dispatch flexibility and can generate electricity in a base load, intermediate load and peaking capacity.

"Site preparation work has already begun and construction of the first phase of the project is scheduled to be completed and in commercial operation by the summer 2002," said Mike Hanson, President and Chief Executive officer of NorthWestern Services Group, adding that Phase I development will include the installation of two simple cycle natural gas‑fired turbines with the capacity to generate 150 megawatts of electricity. "Phase II of the project, which will include the conversion to a combined cycle operation, will add an additional 90 megawatts of generation and should be completed and on line by the summer 2003."

"We are delighted to have been chosen by NorthWestern to construct this project," said Mike Olinger, President of Kelly Group. "We have had many successful projects in Montana working with union labor and local suppliers and look forward to making this project a reality."

The project will require up to 200 workers at the site during the construction phase and 15 permanent positions will be hired once the facility is completed and reaches commercial operation.

Kelly Group LLC, consisting of JH Kelly, Kelly Electric Group and LCG Construction, is one of the Northwest's premier construction companies specializing in mechanical, electrical, civil, structural and construction management services.

NorthWestern Corporation, a FORTUNE 500 company, is a leading provider of services and solutions to more than 2 million customers across America in the energy and communications sectors. NorthWestern's partner entities include NorthWestern Services Group, a provider of electric, natural gas and communications services to Midwestern customers; Expanets, the largest mid‑market provider of networked communications solutions and services in the United States; Blue Dot, a leading provider of air conditioning, heating, plumbing and related services; and CornerStone Propane Partners L.P. (NYSE:CNO), one of the nation's largest retail propane distribution entities. Further information about NorthWestern is available on the Internet at www.northwestern.com.