N-Star Agrees To Pay Premium In Cape Wind Power Deal

BOSTON (AP) — The Massachusetts utility NStar has agreed to buy power from the proposed Cape Wind offshore wind farm for more than double what electricity from conventional sources is projected to cost during the 15-year term of the deal.

The contract filed with state regulators on Friday totals about $1.6 billion, assuming the project obtains hoped-for tax credits. According to estimates in the contract, that’s $940 million above the market price of conventional electricity during that period.

Critics of Cape Wind, which aims to be the nation’s first offshore wind farm, have long said its power is far too costly. The NStar contract is more evidence state ratepayers will be “gouged” by the 130-turbine project, which would be located 5 miles off Cape Cod in Nantucket Sound, said Audra Parker, president of the anti-Cape Wind group the Alliance to Protect Nantucket Sound.

“It’s hard to imagine that the state could have forced a more expensive and burdensome agreement on Massachusetts households, municipalities and businesses,” she said.

State regulators still must approve the deal.
(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • JohnC

    …and Cape Winds is a good idea because?…

    • Rob Cleary

      because they gave Deval Pathetic lots of dough

  • http://energy.prefabsite.net/2012/03/31/nstars-cape-wind-pact-pays-940m-over-market-businessweek/ » NStar’s Cape Wind pact pays $940M over market – BusinessWeek » Energized Energized

    […] CBS Local […]

  • http://energy.prefabsite.net/2012/04/01/nstars-cape-wind-pact-pays-940m-over-market-hartford-courant/ » NStar’s Cape Wind Pact Pays $940M Over Market – Hartford Courant » Energized Energized

    […] CBS Local […]

  • George Bush

    It is a good idea in that it does not pollute and it helps free us from dependence on fossil fuels.
    But, I don’t think putting windmills out in the Ocean is currently worth the cost, I also have doubts about how long they will last out in the salt water.

    I would accept a small price premium for this clean energy, but twice the going rate is just too much.

    • Rob Cleary

      Especially when you know it’s getting kicked back to the DNC.

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