Deal Struck on Cape Wind Energy Pricing
Mass. AG Coakley, National Grid negotiate pricing revision
Aug. 2, 2010 -- The contentious Cape Wind offshore wind project took another turn as the Massachusetts Attorney General's office renegotiated a pricing contract with National Grid in an effort to get the project moving forward.
According to the Mass. AG's office, Attorney General Martha Coakley negotiated a settlement with the main energy buyer of the project, National Grid USA, to lower the starting price of electricity in 2013 to 18.7 cents per kWh, from 20.7 cents per kWh, with an escalation factor of 3.5% per year if the entire project is built. The agreement will shave 10% off the cost of the project, saving ratepayers $456 million.
The parties also agreed to adjust the contract price downward if the project achieves savings through receipt of a federal loan guarantee or a reduction in construction costs.
For more news on this project, visit Wind Energy Industry Today:
Cape Wind news - http://windenergy.einnews.com/news/cape-wind-associates
National Grid news - http://windenergy.einnews.com/news/national-grid-wind
Located at http://windenergy.einnews.com, Wind Energy Industry Today is a wind energy news monitoring service of EIN News.
Aug. 2, 2010 -- The contentious Cape Wind offshore wind project took another turn as the Massachusetts Attorney General's office renegotiated a pricing contract with National Grid in an effort to get the project moving forward.
According to the Mass. AG's office, Attorney General Martha Coakley negotiated a settlement with the main energy buyer of the project, National Grid USA, to lower the starting price of electricity in 2013 to 18.7 cents per kWh, from 20.7 cents per kWh, with an escalation factor of 3.5% per year if the entire project is built. The agreement will shave 10% off the cost of the project, saving ratepayers $456 million.
The parties also agreed to adjust the contract price downward if the project achieves savings through receipt of a federal loan guarantee or a reduction in construction costs.
For more news on this project, visit Wind Energy Industry Today:
Cape Wind news - http://windenergy.einnews.com/news/cape-wind-associates
National Grid news - http://windenergy.einnews.com/news/national-grid-wind
Located at http://windenergy.einnews.com, Wind Energy Industry Today is a wind energy news monitoring service of EIN News.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.