Part 3 of 9

Power Infrastructure

Flathead Electric Cooperative rates, BPA hydro power, and winter-peaking grid constraints.

Energy Rate

$0.043/kWh

Demand Charge

$25/kW

Power Availability by City

Current Usage vs Available Capacity (MW)

Currently Used
Available

Power Cost Comparison

Blended Rate ($/kWh)

15-40% cheaper than N. Virginia or California

Backup Power: Tier 4 Diesel Advantage

Winterized Diesel vs Natural Gas (with curtailment risk)

✓ Tier 4 Diesel: Synthetic Minor permit (60-120 days), no winter curtailment risk, seismic-resilient on-site storage

⚠ Natural Gas: Winter curtailment during Arctic Blast events, pipeline seismic vulnerability in Category D zone

Utility Partner

Flathead Electric Cooperative (FEC) is a BPA Preference Customer. Carbon Profile: 88% Carbon-Free / 73% Hydroelectric. No need to purchase additional RECs to claim carbon neutrality—direct access to clean electrons.

Industrial Rate Tariff (FEC Industrial Service >1,000 kW)

Energy Charge: $0.04365 per kWh (Fixed). Demand Charge: $25.00 per kW (Peak) + $1.57 per kW (Load Size). This rate structure is "Capital Heavy, Energy Light."

Rate Structure Analysis

The $25/kW demand charge is punitive for "peaky" loads but highly efficient for steady-state AI training. At 95% load factor, the blended rate is approximately $0.078/kWh, providing long-term certainty compared to ERCOT's scarcity pricing spikes.

Capacity Constraints

BPA transmission lines into Northwest Montana are winter-peaking constrained. The Buckley substation has identified spare part and capacity issues, potentially requiring a 24-36 month upgrade timeline for interconnection of loads >50MW.

Grid Reliability

Unlike ERCOT, the BPA grid operates as part of the Western Interconnection with more stable reserve margins. However, physical fiber cuts from landslides or winter storms present a higher risk profile than flat Texas terrain.

Backup Power Strategy: Tier 4 Diesel

Tier 4 Final Diesel is the premier choice for Kalispell. Montana DEQ permits diesel generators via "Synthetic Minor" pathway (60-120 days) when capped at <500 hrs/year. Grade 1 Winterized Diesel with tank heaters and heat-traced fuel lines ensures reliability to -20°F. Natural gas is risky due to winter curtailment during Arctic Blast events and seismic pipeline vulnerability in Category D zones.