.
1/7/15, "Two utilities opt out of Cape Wind," Boston Globe, Jim O'Sullivan. "Future of Nantucket Sound turbine project in doubt as purchase contracts are terminated."
"The Cape Wind plan was dealt a major setback Tuesday when two power
companies that had agreed to buy energy from the Nantucket Sound wind
farm terminated their contracts with the developers, raising questions
about the future of the $2.5 billion offshore project.
National
Grid and Northeast Utilities said Cape Wind had missed the Dec. 31
deadline contained in the 2012 contracts to obtain financing and begin
construction, and chosen not to put up financial collateral to extend
the deadline.
NStar, a Northeast Utilities subsidiary, informed Cape Wind officials of its decision late Tuesday, officials said.
“Unfortunately,
Cape Wind has missed these critical milestones,” Northeast Utilities
spokeswoman Caroline Pretyman said in an e-mail. “Additionally, Cape
Wind has chosen not to exercise their right to post financial security
in order to extend the contract deadlines. Therefore the contract is now
terminated.”
In a separate e-mail, National Grid spokesman Jake
Navarro said the utility was “disappointed that Cape Wind has been
unable to meet its commitments under the contract, resulting in today’s
termination of the power purchase agreement.”
Under the 2012 agreement, Northeast Utilities and NStar agreed to buy
27.5 percent of Cape Wind’s production. National Grid had previously
signed on to purchase 50 percent.
A Cape Wind spokesman said the
developer does not “regard these terminations as valid” because of
provisions that, the company argued, would extend the deadlines.
In
letters dated Dec. 31 to both utilities and state regulators, Cape Wind
president James Gordon asked that the power companies hold off on
voiding the contracts, citing “extended, unprecedented, and relentless
litigation by the Alliance to Protect Nantucket Sound,” a leading foe of
the project.
Those lawsuits, Gordon said in his letter, had
prevented Cape Wind from meeting the milestones laid out in the 2012
contract. He argued that the litigation triggered a clause in the
contract that allows for more latitude in Cape Wind’s ability to meet
the deadlines.
The long-term implications for the often-delayed
project remained unclear late Tuesday. Announcement of the soured deal
came on the second-to-last full day in office for Governor Deval
Patrick, who has championed Cape Wind over fierce political opposition
from some in his own party.
The governor has often pointed to renewable
energy as a vital part of the state’s economic future, and spent
significant political capital in backing the proposal.
Ian
Bowles, who as Patrick’s first energy and environment chief helped
shepherd the offshore project, said Tuesday’s news may have spelled the
end for Cape Wind.
“Presumably, this means that the project doesn’t go forward,” he said in a telephone interview.
The
jeopardy in which Cape Wind finds itself reflects a changed energy
market, in which developers bear more risk than the eventual ratepayers,
Bowles said.
“The risk is on the developer to either build it or not. And in this case, the developer appears to have failed,” he said.
Advances
in the state’s renewable energy and efficiency policies have lessened
the importance of Cape Wind in its overall energy landscape, Bowles
said.
In an e-mailed statement Tuesday, Patrick spokeswoman Jesse
Mermell said, “The future of offshore wind in the Commonwealth remains
bright, as does the path for the marine commerce terminal in New
Bedford.”
The Massachusetts Clean Energy Center last month
released a request for proposals to manage the terminal, which is under
development in New Bedford Harbor. That facility would help facilitate
offshore projects such as Cape Wind.
Governor-elect Charlie Baker
is set to take office Thursday. Once a critic of Cape Wind, Baker
shifted positions during last year’s campaign, calling the project “a
done deal.”
On Tuesday night, a Baker spokesman issued a statement
that hinted that the new governor would not interject himself into the
contract dispute.
“Governor-elect Baker believes Massachusetts
must continue to pursue renewable energy sources and diversify the
energy portfolio to reduce our carbon footprint, and he will determine
which policies will or will not keep Massachusetts a leader in
environmental reform once in office,” Baker spokesman Tim Buckley said.
Audra Parker of the Alliance to Protect Nantucket Sound said
preventing the construction of Cape Wind would save billions for
ratepayers.
“Very bad news for Cape Wind,” she said. “Very good news for Massachusetts ratepayers.”
The
offshore project, first proposed more than a decade ago, has been
dogged by permitting hurdles, political obstacles, and legal protests."
.
=======================
Ted Kennedy opposed Cape Wind:
6/26/2003, "Storm Over Mass. Windmill Plan," CBS News, Rome Neal
"Sen. Ted Kennedy, who has a home overlooking the proposed wind farm, also opposes the project."...(about 3/4 into article)
.
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