The Federal Energy Regulatory Commission announced Thursday that it has approved a $161 million loan to the company building the Montana Alberta Tie Line between Great Falls and Lethbridge.

The Western Area Power Administration will loan Toronto-based Tonbridge Power Inc. - the project's developer - money with funds from the American Reinvestment and Recovery Act of 2009, also known as the federal stimulus bill.

WAPA and Tonbridge closed on the financing Oct. 27, but FERC's approval of the transaction wasn't made public until Thursday. FERC regulates the interstate transmission of electricity, natural gas and oil.

MATL is the first project financed by WAPA using Recovery Act funds.

Bob Williams, a vice president with Calgary-based Montana Albert Tie Ltd., a Tonbridge subsidiary, said construction of the 230-kilovolt power line is scheduled to begin by the end of year, at a total project cost of $213 million.

Commercial operation is expected to begin in late 2010.

Once built, the transmission project will be capable of delivering 300 megawatts to 600 megawatts of wind energy - or enough to power 150,000 to 300,000 homes, according to WAPA.

"This transmission line will be an important link for consumers to get access to renewable energy, and it represents a solid, real-world example of how stimulus funds can and will help improve Americans' lives," FERC Chairman Jon Wellinghoff said.

Under the financing arrangement, WAPA will have a one-twelfth ownership interest in the line, comprising about 18 miles, and a conditional right to 50 megawatts of southbound capacity.