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State Approves Cape Wind, NSTAR Power Purchase Agreement

The Massachusetts Department of Public Utilities approved a 15-year power purchase agreement between NSTAR and Cape Wind, moving the project forward.

NSTAR will purchase 27.5 percent of Cape Wind’s power under the 15-year agreement approved by the state. The state’s approval removes a huge roadblock for Cape Wind to secure financing for the project. 
 
The Massachusetts Supreme Court upheld a similar deal between National Grid and Cape Wind in December 2011. National Grid agreed to purchase 50 percent of Cape Wind’s power.
 
“Taken together, these two PPAs provide Cape Wind with the critical mass to continue securing project financing,” said Theodore Roosevelt IV, Cape Wind’s Financial Advisor and Managing Director of Barclays in a press release.
 
The approval is a huge milestone for the 130-wind turbine project in Nantucket Sound. “This decision helps secure the position of Massachusetts as the U.S. leader in offshore wind power, launching a new industry that will create jobs, increase energy independence and promote a cleaner and healthier environment,” said Cape Wind President Jim Gordon in a press release.
 
Even though Cape Wind will now be able to finance the project the organization is still facing five lawsuits in federal court. Opponent and President of Save Our Sound Audra Parker said the project is not a done deal. “While the decision comes as no surprise, it is alarming that the state is willing to burden Massachusetts businesses and households with billions of dollars in added utility costs for this expensive and controversial project,” Parker said.
 
Cape Wind would be the first offshore wind farm in the United States.

Holly Nadler November 26, 2012 at 11:59 PM
It's too ugly a scheme for our gorgeous ocean! As a long-time lover of Santa Barbara, I've always wondered what greedy bastards stuck oil derricks just off shore!
Chip Coblyn November 27, 2012 at 02:11 PM
Well, I haven't had my fair share of abuse this am, so I'll agree with Holly and raise the fact that deep water (ie: out of sight) projects have been, and currently are being built elsewhere. It's a shame the developer won't move this massive industrial plant further offshore and away from the conch fields to boot.
Stacia Chuairy November 27, 2012 at 10:21 PM
Don't forget also the economics & politics of this project: "NStar has received approval to purchase Cape Wind’s power at an outrageous starting rate of 22 cents per kilowatt hour, compared to today’s market rates of fewer than 7 cents per kilowatt hour– a move that will hurt households, businesses and municipalities in Massachusetts. NStar’s purchase of Cape Wind power was a condition set forth by the Patrick Administration following a series of closed-door meetings between it and the utility – concessions necessary for the approval of the $17.5 billion NSTAR/Northeast Utilities merger."

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