Cape Wind Contract Terminated

Cape Wind Contract Terminated

• National Grid joins NStar in terminating Cape Wind contract

Deals between Cape Wind and both NStar and National Grid for power from the proposed Nantucket Sound wind farm have fallen apart, marking a major, and potentially fatal, setback for the project.

NStar, which agreed in 2012 to buy 27.5 percent of the power expected to be generated by the 130-turbine wind farm, wrote a letter to the company today stating that Cape Wind has failed to meet its obligations under the contract.

Under the terms of the contract, Cape Wind was required to secure financing and begin construction by Dec. 31, according to NStar spokeswoman Caroline Pretyman.

“Unfortunately, Cape Wind has missed these critical milestones,” Pretyman wrote in an email. “Additionally, Cape Wind has chosen not to exercise their right to post financial security in order to extend the contract deadlines. Therefore the contract is now terminated.”

Both companies agreed to the deadlines Cape Wind missed, Pretyman wrote.

“Contracts such as the one between us and Cape Wind have these milestones so that projects that are unable to move forward do not burden customers for long periods of time in a high-priced market environment due to lack of supply,” she wrote.

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