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Investor Presentaiton

r 21 Transmission System Update . Electric Transmission: • • Continue planned retirements of generating resources in Montana in conjunction with increasing demand is placing more stress on the transmission system (two record peaks in the last three seasons). As a result, we are experiencing less available transmission capacity throughout the system. Continued investment is critical to address aging infrastructure, capacity concerns, reliability and compliance requirements. Gas Transmission: Continued investment is critical to address aging infrastructure, capacity concerns, reliability and compliance (including the Pipeline and Hazardous Materials Safety Administration proposed rules). • Three primary factors leading to the need for additional investment to address: · • Overall reliability and capacity on the gas transmission system to withstand single large contingencies and to address the decline in on- system gas production; The need to provide additional capacity for existing gas-fired electric generation (given expected growing dependence); and The need to serve new gas-fired capacity generation in South Dakota. Significant investment needs identified for transmission reliability, capacity and gas/electric interdependence. NorthWestern Energy Delivering a Bright Future
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