National Grid has executed a new power purchase agreement (PPA) with Deepwater Wind. The utility filed the PPA with the Rhode Island Public Utilities Commission on Wednesday.
New legislation authorized National Grid to enter into an amended PPA agreement with specified pricing changes from the previous agreement that was filed on Dec. 9, 2009.
While the starting price remains at $0.244/kWh in 2013, the new pricing provisions contemplate the potential for this price to be lowered. The price is subject to annual increases of 3.5%.
Under the new ‘open book’ pricing structure required by law, the energy cost would not exceed $0.244/kWh. Additionally, Deepwater Wind would return to ratepayers any and all cost savings it achieves during the assembly and construction of the wind farm. Conversely, Deepwater Wind would be solely responsible for absorbing any project cost overruns.
Gov. Donald L. Carcieri, R-R.I., commended Deepwater Wind and National Grid.
‘We have the opportunity to once again control our economic destiny, to lead the nation in the creation of a new industry, and to create hundreds, if not thousands, of good-paying jobs for Rhode Islanders,’ he said in a statement.
The Block Island project is the first phase of a two-phase project. Deepwater Wind later plans to build a larger-scale wind farm, with about 106 turbines, located in federal waters about 15 miles from nearest landfall.