Massachusetts Approves Cape Wind / NSTAR Power Purchase Agreement

  Massachusetts Approves Cape Wind / NSTAR Power Purchase Agreement

Business Wire

BOSTON -- November 26, 2012

Cape Wind secured another major milestone today with the approval by the
Massachusetts Department of Public Utilities (DPU) of the 15-year Power
Purchase Agreement (PPA) with NSTAR to buy Cape Wind’s energy, capacity and
renewable energy credits.

Cape Wind President Jim Gordon said, “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. With this decision, Massachusetts electric
consumers have secured an abundant, inexhaustible, and clean energy resource
that provides price stability and avoids all of the external costs of fossil
fuels. Finally, our region will no longer be at the end of the energy
pipeline, by harnessing an endless supply of offshore wind power, we will be
producing homegrown and clean energy right here.”

The NSTAR / Cape Wind PPA is for 27.5% of Cape Wind’s power. In December,
2011, the Massachusetts Supreme Judicial Court unanimously upheld the DPU’s
approval of Cape Wind’s PPA with National Grid for 50% of Cape Wind’s power.

Theodore Roosevelt IV, Managing Director of Barclays and Cape Wind’s Financial
Advisor said, “Taken together, these two PPAs provide Cape Wind with the
critical mass to continue securing project financing.”

Cape Wind President Jim Gordon added, “We are very pleased with the favorable
reception we have been experiencing from the financial community and this
approval of our PPA with NSTAR will further help Cape Wind secure financing
and deliver all of the public benefits this important project will provide.”

Extracts from the DPU Order approving the Cape Wind / NSTAR PPA:

“Accordingly, we conclude that the attributes of the Cape Wind facility, when
considered in the aggregate, remain unique among Section 83-eligible resources
and will provide benefits to NSTAR Electric ratepayers that far exceed those
that could be provided by other potential Section 83 contracts. The critical
unique attributes of the Cape Wind facility relate to its size, capacity
factor, location on the regional transmission system, and stage of
development.” p. 149.

“Accordingly, as we concluded in D.P.U. 10-54, at 229-230, the Cape Wind
facility will produce far greater benefits in terms of its: (1) contribution
to narrowing the projected gap between supply and demand of renewable
resources; (2) contribution to compliance with GWSA emission reductions
requirements; (3) contribution to fuel diversity; (4) price suppression
effects; (5) ability to act as a hedge against future fuel price increases and
volatility; (6) contribution to system reliability; and (7) ability to
moderate system peak load. As discussed below, the value of the Cape Wind
facility as compared to alternative Section 83-eligible resources is further
enhanced when these benefits are considered in combination with the facility’s
favorable location on the regional transmission grid and advanced stage of
development.” p.150

Link to the DPU Order:
http://www.env.state.ma.us/dpu/docs/electric/12-30/112612dpuord.pdf

Cape Wind is America’s first offshore wind farm to secure Federal and State
approval and to be issued a lease to operate by the Federal Government. Cape
Wind will create jobs and promote greater energy independence and a cleaner
environment. Cape Wind will also establish Massachusetts as a leader in
offshore wind power. For more information visit: www.capewind.org.

Contact:

Cape Wind
Mark Rodgers, 508-237-6312
mark@capewind.org
 
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