Gov. Deval Patrick announced yesterday that Nstar will buy 27.5% of electricity from the offshore wind project Cape Wind.
If this offshore wind farm does not start spinning by 2016, Nstar will not have to buy electricity from Cape Wind, but it will need to find equal amount of clean energy from some other sources. Nstar has agreed to freeze the prices of electricity and natural gas for four years and provide a rebate of USD 21 million to the customers.
Regulators in Massachusetts also proposed a merger of Nstar with Connecticut-based Northeast Utilities worth USD 4.7 billion.
Following the announcement, Jim Gordon, President of Cape Wind released the following statement:
“ Today’s announcement by Governor Patrick represents a major step forward in making Massachusetts a leader in offshore wind power and attaining the jobs, clean air and energy independence benefits that Cape Wind will provide. By including Cape Wind in this utility merger Settlement Agreement, NSTAR and the Patrick Administration are helping ensure that Cape Wind will supply up to 500,000 homes with locally harvested renewable energy and create hundreds of new jobs. While Massachusetts may be at the end of the energy pipeline for oil, coal and natural gas, we do have an abundant and inexhaustible supply of offshore wind and we will harness it for a better energy future. Today’s announcement also affords NSTAR and its customers the unique opportunity to bring to fruition the critical objectives adopted by the Legislature when it unanimously enacted the landmark Green Communities Act in 2008, namely reductions in pollution and greenhouse gas emissions, increased electric reliability and sustainable economic development. While future fuel prices are uncertain, the Massachusetts Department of Public Utilities has determined that Cape Wind provides a unique set of benefits for Massachusetts and is cost-effective and will place downward pressure on wholesale energy prices while avoiding the external costs of burning fossil fuels. We are excited to move forward. ”
[mappress] Offshore Wind Staff , February 16, 2012