NSTAR/Cape Wind PPA approved
The Massachusetts Department of Public Utilities (DPU) has approved a 15-year Power Purchase Agreement for NSTAR to buy Cape Wind's energy, capacity and renewable energy credits.
The DPU Order concluded 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."
Further, the DPU Order noted that "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."
The NSTAR PPA is for 27.5 percent of Cape Wind's power. Cape Wind also has a PPA with National Grid for 50 percent.